Leveraging technology for effective ESG-led GRC: takeaways from ESG Summit, Melbourne

Last week, our CEO Sam Riley, led an engaging and enlightening roundtable discussion, titled, "The tech advantage: simplify and accelerate the path to ESG-led GRC," the conversation delved into the challenges businesses face when aligning with environmental, social, and governance (ESG) requirements and how technology can help overcome these hurdles.

Drawing on insights from this discussion, let's examine the key takeaways and strategic actions that businesses can implement for effective ESG-led governance, risk, and compliance (GRC).

Scope 3 emissions – the real challenge and the role of AI

While participants agreed that Scope 1 & 2 emissions (direct emissions and indirect emissions from purchased electricity) data collection is straightforward, gathering data for Scope 3 emissions (all other indirect emissions) poses significant challenges. These emissions arise from sources outside of an organization's control, such as from offshore vendors, making their accurate measurement tricky.

A suggested solution? A combination of AI technology and mandated government databases. Advanced AI models can accurately estimate Scope 3 emissions based on various input parameters, while government-regulated databases can provide much-needed transparency and consistency in the data from third parties.

Overcoming offshore vendor data challenges

The difficulty in obtaining reliable and complete data from offshore vendors was highlighted as another significant hurdle. The recommendation here is to enforce stringent data provision clauses in vendor contracts. Additionally, leveraging AI could aid in data validation, filling in gaps with predictive analytics, and creating more reliable data sets.
 

Standardizing reporting

When it comes to ESG reporting, standardisation is crucial. Many participants expressed frustration at the lack of clear guidelines, leading to costly consultancy bills. The key takeaway here was to push for universal reporting standards. In the meantime, businesses could turn to comprehensive ESG management platforms, like Ansarada's, which offer guidance and streamlined solutions for effective ESG reporting.

AI education for ESG personnel

There was a consensus that while AI offers immense potential to help manage ESG challenges, a knowledge gap exists among ESG personnel. To address this, organisations need to invest in training and development, enabling their ESG teams to understand and exploit AI's capabilities fully.

Ensuring board visibility and understanding ROI

Finally, there was a collective call for better visibility and understanding of ESG initiatives' long-term ROI. Here, it was suggested that organizations could utilise robust ESG platforms to track, measure, and report on their ESG efforts. This would provide the much-needed transparency for boards and stakeholders and demonstrate the positive financial impact of their ESG investments.

To conclude, the roundtable underscored the significant role of technology, particularly AI, in simplifying and accelerating ESG-led GRC. However, it was clear that businesses would need to invest in training, enforce stringent data collection processes, and utilise comprehensive management platforms to reap the full benefits.
 

Ready to simplify and accelerate your path to ESG-led GRC?

Equip your business with the necessary tools to address these challenges and improve your ESG outcomes. Ansarada's Sustainability Management Platform can help your company align with complex sustainability frameworks, deliver impact through innovation, and unlock purpose-driven growth opportunities.