Environmental, Sustainability and Governance (ESG) policies have faced a few high-profile storms in recent years. The recent backlash to so-called ‘greenwashing’ and new legislation to control how brands can speak about green credentials has seen global investors pull an estimated USD 5 billion from ESG funds and investment initiatives.
Yet on other fronts, it seems that ESG is entering a new era and learning from the events of the past. Despite the fallout from greenwashing scandals, a 2024 Morgan Stanley report showed that over 2,800 international investors believe strong ESG practices can lead to better returns.
And it seems that a large majority of companies aren’t planning to backtrack on their goals, with ESG metrics increasingly included in executives’ performance-related bonuses.
Long-term, top-down incentives like this will play a crucial role in ESG’s new era but having the data to hand for key metrics couldn’t be more important.
This is where Credibl and its innovative ESG platform enter the picture.
Software platform with a purpose
ESG is a specific tool, a set of measurable criteria to assess a company’s progress toward sustainability goals. It should provide investors, consumers, and stakeholders with a lens to evaluate a company’s commitment to responsible and sustainable practices. Think of it as a progress report on the journey towards a sustainable future.
But any report needs to be built with solid data but companies often hit a roadblock when it comes to tracking and measuring ESG metrics. For one, things like complex global supply chains can make it tricky to track and tangibly prove sustainability performance for certain systems or products. What’s more, there are often specific criteria for specific industries that mean off-the-shelf reporting tools won’t cover all the bases.
Here, Credibl is on a mission to address pain points like these and make it easy and accurate to report on ESG achievements. The company offers an intelligent, end-to-end platform to track and measure against any number of ESG metrics while also offering features like an ESG virtual assistant, automatic peer benchmarking and variance analysis that spots manual mistakes.
All of these tools promise to make it easier for companies to monitor their performance to see if they’re making progress towards ESG goals and identify areas that need adjustment. In turn, with transparent, accurate reports to hand, companies can build trust and authenticity with investors, stakeholders and clients.
Driving sustainable, long-term change
ESG data represents one of the greatest opportunities in the history of capital markets to gain deeper insight into the proper drivers of long-term value.
The data offers a huge opportunity to gain deeper insights into how capital markets can be drivers of long-term value and sustainable change.
Innovative tools like Credibl’s platform mean that corporate brands can go further with their ESG initiatives and track their KPIs whether these lie in community engagement, employee diversity, waste management or energy efficiency.