It’s been just a week since the US elections, and already sustainability managers are facing a changed landscape. There will be policy rollbacks and a change in incentives. But what else could affect the day-to-day work of sustainability teams?
In this new era, sustainability teams still face compliance, customer and investor requests for sustainability reporting and data. But that’s just table stakes. Preparing sustainability data – data on water, waste, energy and emissions – has been 80% of the sustainability challenge. In the new era the value of this data is only higher. Sustainability teams can go beyond reporting to deliver substantial value to their companies and stakeholders.
Our message to sustainability managers: In the new post-election era there are three pillars of value for sustainability data, each delivering a return far above the costs of data preparation. Get ready to show your ROI!
#1 Securing low-cost energy and water supplies.
We’re facing rapidly rising electricity and water costs across the U.S. But the US market is incredibly fragmented. This means each locale has its own trajectory of price increases. Sustainability Data 1.0 was about reporting data by site once per year. Sustainability Data 2.0 is using granular, fresh sustainability data to identify the sites in your portfolio that face unusually high costs and risks. Build the business case for energy and water reductions, new supply contracts and more, from your data-driven prioritized site list. Save money for the company from your awesome sustainability data.#2 Meet investor demands.
Investors are adding sustainability data to financial data and making money. They’re demanding high-quality sustainability data so they can better select investments and hedge out climate risk. More data means improved portfolio selections and better returns. Sustainability Data 1.0 was about estimated data, cherry picking results and best efforts to get an annual report done. Sustainability Data 2.0 is about accurate, audited sustainability data that is as rigorously prepared as financial data. That’s what investors want. High-quality sustainability data leads to more investors and a higher company valuation.#3 Data to feed enterprise AI
Adopting AI is at the top of every corporate agenda. But AI needs data, and the lack of accurate, enriched company-level data is a chokepoint in every AI journey. Sustainability data is a lens into the company’s operations. Add in (e.g. enrich) with other business data such as SAP codes, GL codes, site names and so on. These help tie your sustainability data to other software systems. And then let the enterprise AI run. You’ll be the data hero when enterprise AI uncovers new operational efficiencies in unexpected areas. Sustainability Data 1.0 was serving the sustainability function. Sustainability Data 2.0 is serving the whole company and being part of the efficiency solution.In Sum
The three pillars add up to terrific news for sustainability. Your stakeholder group now includes customers, investors and an internal audience. Sustainability/carbon accounting software can make the reporting job much easier. Your data can flow into that software, and into other key business systems too.
To learn more about each pillar of value, and see the “The New To Do List” for sustainability managers, read our white paper here.
Automated sustainability data preparation addresses 80% of the sustainability challenge and has an awesome ROI. If you want help in shaping your sustainability business case or calculating the ROI from automated services, talk to GLYNT.AI. We’ve got the calculators built and we’re happy to share them with you.
