How ESG is transforming the business world
ESG factors are a key measure of a company's sustainability and their compliance with these standards makes them more trustworthy for investors, consumers and society as a whole.
The term "ESG" stands for Environmental, Social and Governance. This refers to a set of environmental, social, and governance criteria that are integrated into a company's business strategy and are considered by investors when making sustainable investments.
The company needs to change its mentality and business model to implement this effectively. This is in line with the company's vision that its global impact matters and that it needs to adopt policies and strategies that have a positive impact on the environment, society, and good governance.
ESG analysis encompasses the measurement of three criteria:
- Environmental, comprising all actions that have a positive impact on the environment.
- Social actions in line with respect for human rights, labor conditions, etc.
- Good governance, actions related to corporate culture, transparency in management, relationship with other stakeholders, etc.
The analysis of ESG criteria is essential for determining the sustainability of an investment. This is because more and more clients are requesting that their investments include ESG criteria. With the changing values of younger generations, this trend is only going to grow in importance. This will have a significant impact on investors, consumers, and workers alike.
EDICOM can help to align with ESG criteria
Digital transformation is key to achieving sustainability in the production system.
Cloud services and electronic data interchange are the two main pillars of digital transformation, and both have a direct impact on environmental sustainability.
There are many benefits to migrating to cloud computing, including reducing CO2 emissions and the need for on-premises servers. Cloud computing creates a virtual environment in which applications, platforms and software can be accessed from anywhere.
EDI technology provides organizations with the opportunity to move away from paper-based methods, which can improve efficiency and help the environment.
Adopting a paperless workflow has numerous benefits - it helps the environment and cuts down on costs associated with printing and storage.
The key to sustainable digitization is using the right digital technology to achieve your sustainability objectives. EDICOM is a leading provider of EDI solutions that can help you through the digital transformation process. Our EDICOMiPaaS solution enables you to integrate your business applications into the cloud ecosystem.
At EDICOM, we develop global solutions for electronic data interchange (EDI), electronic invoicing and digital VAT reporting, electronic long-term storage and the integration of applications based on efficient SaaS models.