As a CDO or CFO, you are always looking for the next big thing to keep your company ahead of the curve and DATA is no different. You may have already implemented various data governance strategies, but have you considered how Environmental, Social, and Governance (ESG) factors will impact your data governance? ESG data is becoming increasingly important as society becomes more environmentally and socially conscious. According to a recent study by Oracle and MIT SMR, 86% of global companies believe that ESG data will be very or extremely important to their business within the next five years.
But what is ESG data? Simply put, it’s data that captures a company’s environmental, social, and governance performance. This could include everything from a company’s carbon footprint to its employee satisfaction rates.
Important Factors to Consider
As an increasing number of investors are factoring ESG into their investment decisions, it’s more important than ever for companies to have a robust data governance strategy that takes ESG into account. Here are a few things to consider as you look to incorporate ESG into your data governance strategy:
What are the current requirements for reporting ESG data?
Are these requirements aligned with our company’s values?
Do we have the right technology and processes in place to capture relevant ESG data?
Do we have the right people in place to manage this data?
What are the risks associated with incorporating ESG into our data governance strategy?
How do you measure up to your industry peers relative to ESG reporting & clarity of impact?
Have you been able to connect your ESG actions to positive impacts with your bottom line?
Answering these questions can help you develop a plan for incorporating ESG into your overall data governance strategy. It’s also important to keep in mind that requirements for reporting ESG data are constantly changing as society’s understanding of these issues evolves. As such, it’s important to review and update your strategy on a regular basis.
Incorporating ESG into your data governance strategy is becoming increasingly important as investors factor these issues into their investment decisions. However, it’s not enough to simply collect this data – you need to have a plan for how to manage it effectively. Answering the above questions can help you develop a plan for incorporating ESG into your overall data governance strategy.
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