Introduction:
Environmental, social, and governance (ESG) factors are increasingly important for the success and sustainability of businesses in the modern world. Stakeholders want to know how companies are managing their ESG impact and performance, and they expect clear and consistent reporting of ESG information. In this article, we will explore how a centralised system of ESG reporting can benefit companies and their stakeholders. We will also look at how IT consulting companies can support the adoption of a centralised system, using the example of the Corporate Sustainability Initiative (CSI) platform by Bursa Malaysia.
What is the CSI platform?
The CSI platform is a digital solution that enables companies to report their ESG information in a standardised and reliable way. The platform was launched by Bursa Malaysia in collaboration with the London Stock Exchange Group (LSEG) in March 2023, with the aim of building a quality and sustainable capital market and becoming a leading corporate governance and sustainability hub. The platform provides a framework for ESG reporting that aligns with international standards and best practices, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD). The platform also allows companies to benchmark their ESG performance against their peers and industry leaders, as well as to access insights and analytics on ESG trends and opportunities.
How does a centralised system of ESG reporting benefit companies and their stakeholders?
A centralised system of ESG reporting, such as the CSI platform, offers several advantages for companies and their stakeholders, such as:
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Enhanced Transparency and Accountability: By reporting their ESG information through the CSI platform, companies can demonstrate their environmental and social impact, governance practices, and sustainability efforts in a consistent and reliable way. This transparency enables investors, customers, employees, and other stakeholders to make informed decisions and hold companies accountable for their actions.
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Facilitates Benchmarking and Performance Comparison: The CSI platform allows companies to compare their ESG performance with their peers and industry leaders, using a standardised framework for ESG reporting. This helps companies identify their strengths and weaknesses, as well as areas for improvement and innovation.
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Attracts Responsible Investment: By using the CSI platform to report their ESG information, companies can show their commitment to ESG practices and attract responsible investors who value sustainable and ethical businesses. The platform also provides investors with accurate and comprehensive information, giving them confidence in assessing a company’s sustainability and long-term viability.
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Supports Risk Management: The CSI platform helps companies identify and manage potential ESG risks more effectively. By reporting their ESG information through the platform, companies can evaluate their environmental and social impact, governance practices, and sustainability efforts more systematically. This enables them to implement risk mitigation strategies and avoid negative consequences.
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Drives Innovation and Efficiency: The CSI platform encourages companies to evaluate their ESG impact more comprehensively, often leading to the discovery of areas for improvement and opportunities for innovation. The platform also facilitates efficient data collection, structuring, and reporting, saving time and resources.
How can IT consulting companies support the adoption of a centralised system of ESG reporting?IT consulting companies can play a vital role in supporting the adoption of a centralised system of ESG reporting by offering various services and solutions, such as:
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Integrating software solutions with the CSI platform: IT consulting companies can provide software solutions that integrate with the CSI platform, ensuring efficient data collection, structuring, and reporting. For example, they can offer data management systems that automate data extraction, validation, transformation, and loading from various sources into the CSI platform.
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Providing education and training on data sources, data structuring, and the effective use of the CSI platform: IT consulting companies can provide education and training on how to source reliable data for ESG reporting, how to structure data according to the CSI framework, and how to use the CSI platform effectively. For example, they can offer workshops or webinars on data quality assurance, data mapping, data analysis, data visualisation, etc.
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Offering collaboration and partnership opportunities: IT consulting companies can offer collaboration and partnership opportunities with other stakeholders in the ESG ecosystem, such as regulators, industry associations, NGOs, etc. For example, they can facilitate knowledge sharing or joint projects on ESG topics or issues.
Conclusion:
A centralised system of ESG reporting is essential for the success and sustainability of businesses in today’s world. By adopting a centralised system such as the CSI platform by Bursa Malaysia, companies can enhance their transparency and accountability on ESG matters; facilitate benchmarking and performance comparison; attract responsible investment; support risk management; and drive innovation and efficiency. IT consulting companies can support this process by offering software solutions that integrate with the CSI platform; providing education and training on data sources, data structuring, and the effective use of the CSI platform; and offering collaboration and partnership opportunities with other stakeholders in the ESG ecosystem. By doing so, IT consulting companies can add value to their clients and contribute to a more sustainable and ethical capital market.
References:
Accelerating and digitalising ESG with Bursa Malaysia’s Centralised Sustainability Intelligence Platform. (2023, August 14). The Edge Malaysia. https://theedgemalaysia.com/content/advertise/accelerating-digitalising-esg-bursa-malaysia-centralised-sustainability-intelligence-platform
Author’s Profile:
Ifrah Bukhari is a certified Business Analyst with expertise in IT consulting and business analysis. She specializes in sustainable business practices, holding certifications in ESG risks and opportunities, climate change, and risk identification and materiality. Currently a Business Analyst at Softech360, Ifrah drives ESG reporting and consulting services. With a deep understanding of the challenges organizations face in adopting sustainability, she helps clients identify improvement opportunities and implement effective strategies to achieve their ESG goals. As a published author, Ifrah’s ability to bridge IT and sustainability enables her to provide comprehensive solutions that drive long-term value for organizations, contributing to a more sustainable future.
