ESG factors and sustainability have become top priorities for businesses worldwide in recent years. Companies are under increasing pressure to not only meet their financial targets but also operate in a socially responsible and sustainable manner. ESG and sustainability considerations are no longer just optional or “nice-to-have" features; they are essential for building a strong reputation, attracting investors and customers, and complying with regulations. On a global level, regulatory mandates are planned or already in motion.
See how to advance your ESG reporting with industry-leading cloud data management.
Cloud data management can play a crucial role in these endeavors. A centralized and controlled solution provides companies with the information they need to measure and track their progress toward sustainability goals and make data-driven decisions. A data management solution rich with capabilities can enable companies to be transparent and accountable in their ESG reporting.
I’m excited to share that at Informatica World in Las Vegas last week, we announced the Intelligent Data Management Cloud™ (IDMC) for ESG Sustainability. This solution provides an end-to-end integrated data management cloud that enables the entire data lifecycle. It includes the foundational elements of data discovery, ingestion, integration of data and applications and quality improvement. Single views and business 360 applications, governance, privacy and data sharing and democratization for ESG sustainability data round out its robust features.
"As Informatica and our customers bring data to life in inspiring ways, we also maintain a commitment to strong governance, and social and environmental responsibility. We are creating an environment where we are able to thrive, drive business growth, and support our communities worldwide."
IDMC for ESG Sustainability leverages Informatica’s cloud-native solutions as an integrated platform to help companies access and leverage fit-for-use ESG data.
“With Informatica, we know what data is coming in across all of our ESG data vendors, and it’s really important to get to the operational and commercial view of that data for ESG,” said Sally Bashuan, Executive Director and Head of Data Governance at Federated Hermes.
Addressing Top ESG Business Priorities
IDMC for ESG Sustainability supports top ESG business priorities, including:
Regulatory Compliance: IDMC for ESG Sustainability allows companies to build a clean, trusted and fit-for-use ESG data hub. This hub has virtually all the appropriate controls to satisfy industry regulations such as:
- The U.S. Security and Exchange Commission’s upcoming Taskforce on Climate Related Financial Disclosures (TCFD) ESG reporting and Green House Gas (GHG) reporting requirements across Scope 1, 2 and 3, expected to go live in January 2024 in the US
- The European Union Taxonomy, Sustainable Finance Disclosure Regulation (SFDR) and Financial Services and Corporate Sustainability Reporting Directive (CSRD) for all large publicly listed companies going live in January 2024
- International Sustainability Standard Board (ISSB) and TCFD mandates for organizations across G7 and G20 countries to comply with sustainability-related financial reporting standards and meet investors’ needs
IDMC for ESG Sustainability enables compliance teams to leverage clean, valid and transparent data used in regulatory report submissions, and to respond quickly to regulatory requests.
“The data lineage [capability] helps [users] see where the data is, how it’s flowing and the quality end to end. It’s really powerful, helping the business find data quicker than ever before,” said Keeley Miles, Director, Global Data Strategy at Ford Motor Credit Company.
Value Chain Due Diligence and the Circular Economy: IDMC for ESG Sustainability helps with:
- Data collection, governance, quality and mastering of Scope 3 carbon emissions data in the supply chain from an “environmental” perspective
- Self-service capability built into a supplier portal to perform Human Rights Conventions to mitigate the risk of forced labor, child labor, etc., in line with United Nations Global Compact (UNGC) at scale in the supply chain from a “social” perspective
- Data collection, governance, quality and mastering of third-party data such as ESG Rating Agency data, as well as publicly available data sets to augment data collected from corporations for better due-diligence decision making
- Data collection, governance, quality and mastering of product lifecycle management data to finding opportunities to decarbonize supply chains across the 4Rs of reduce, reuse, recycle and remove in areas such as waste management and end of life treatment of products
ESG Integration: IDMC for ESG Sustainability helps with integrating clean, trusted, fit for-use ESG data into decision-making processes to decarbonize the “Target Operating Model” of the business, as well as making data-driven decisions in mitigating climate related risks. Examples are the “Physical Risk Assessment” scenarios recommended by TCFD and as well as the “Regulatory Climate Stress Testing” (“hot-house”) scenarios for the financial services sector.
ESG Impact Measurement: IDMC for ESG Sustainability helps companies link their activities and data to measure “ESG Performance and Alignment” with 17 Sustainable Development Goals (SDGs) established by the United Nations (UN) as part of their 2030 Agenda for Sustainable Development.
Net-Zero Carbon Emissions: IDMC for ESG Sustainability helps companies that have established science-based targets with the Science-Based Targets Initiative (SBTI) to measure progress against clean, trusted ESG data to achieve net zero carbon emissions.
IDMC for ESG Sustainability helps chief financial officers, chief sustainability officers, chief data officers, chief procurement officers and chief risk officers to embrace the power of cloud and AI to transform how they extract business value from ESG Sustainability data. IDMC enables a clean, trusted ESG data hub to meet compliance challenges, while finding opportunities to innovate and modernize to stay competitive.
Hear directly from our partner community on how we’re joining forces and leveraging IDMC to support customers’ ESG and sustainability goals towards a better future.
Learn more about how Informatica can help companies like yours advance their sustainability and ESG initiatives and meet upcoming regulatory mandates:
- Watch our video, “How to Pioneer the New Era of Sustainability and Accelerate ESG Reporting”
- Check out the fireside chat featuring our customer, Federated Hermes, for an in-depth discussion on data governance and ESG reporting
- Visit our website, www.informatica.com/esg-sustainability