Closer look at ESG
Social and governance data need greater focus.
When it comes to environmental, social and governance (ESG) and driving the ESG agenda with data-driven actions, the focus has so far been more on the environmental aspects of sustainability. The reason lies in the lack of implementation of technology to effectively capture and monitor organizations’ social and governance initiatives for holistic sustainability.
While organizations are reporting on some social and governance aspects, they are often for compliance. A few examples include gender equality in employment, equal pay for equal work, prohibition of child labor, and safety of workers. Meanwhile, employee satisfaction, racial discrimination, biases, and things like urban, rural, and tribal welfare are being loosely measured and not adequately improved upon due to the lack of insights and benchmarking.
In this context, cloud solutions can be instrumental in enabling more accurate measurement of social and governance scores. They can help organizations track improvements, develop complex predictive models, and generate insights to effectively manage social and governance aspects of ESG. Not just that, they can help organizations meet their commitments to society and become more responsible corporate citizens.
Governance is the cornerstone that drives all the other aspects of sustainability.
Realizing this, companies today are putting a premium on robust governance, which includes both financial and operational governance:
Financial governance: Deploy real-time monitoring of all financial transactions and AI-based anomaly detection over and above the rule-based assessment. Cloud makes available ready-to-use AI models and capabilities that can be leveraged for fraud detection and possible misappropriation.
Operational governance: Enhance monitoring of operations and event-driven architecture that can address non-compliance on a real-time basis. This, thereby, allows us to take actions that might otherwise be delayed and lead to suboptimal governance and inefficiency. Cloud enables the creation of detailed dashboards with dynamic data representation capabilities along with intricate management of alerts.