What is sustainability data?
Sustainability data is all the information an organization collects to understand and report on how the company affects the environment, people and how it governs its business practices. The acronym usually used to pinpoint sustainability data is ESG, which stands for Environmental, Social, and Governance. Sustainability data can include both numbers and narrative, helping organizations be open about their actions and take responsibility for the future.
Data is the bedrock of a resilient businesses
Sustainability data is the bedrock of meaningful environmental action and sustainable business practices. Sustainability data gives us a baseline; without it, we're just guessing. The data might show us a way to cut down on waste, which also helps the bottom line, or spot discrepancies in operations between two or more business sites. Well-structured sustainability data can also spark innovation and ideas for doing things in a completely new way. It is not only about being sustainable but also about clarity and being a resilient business.
Sustainability data is categorized under the ESG framework
Environmental Data: This is often the most data-intensive category. It includes, but is not limited to:
Greenhouse Gas (GHG) emissions (Scope 1, 2, and 3)
- Energy consumption (electricity, heating, fuel)
- Water usage and discharge
- Waste generation and recycling rates
- Resource consumption (raw materials, packaging)
- Pollution and environmental incidents
- Land use and biodiversity impacts
Social Data: This relates to an organization's impact on its stakeholders, including:
- Employee health and safety metrics
- Workforce diversity and inclusion statistics
- Labor practices and human rights in the supply chain
- Community engagement and investment
- Customer welfare and product responsibility
- Training and development hours
Governance Data: This focuses on how an organization is led and managed, such as:
- Corporate policies on sustainability and ethics
- Board oversight of ESG issues
- Risk management processes related to sustainability
- Stakeholder engagement mechanisms
- Transparency in reporting and disclosure
- Executive compensation linked to sustainability targets
Why is sustainability data important?
Planet (E)
- Measure and mitigate: Quality data is necessary to quantify the impact of actions, including greenhouse gas emissions, water consumption, waste generation etc. To set credible reduction targets, implement change, and track progress, you need a reliable baseline.
- Informed decision-making: Reliable baseline provides the insights needed to set purposeful sustainability goals, to develop effective strategies, allocate resources efficiently, and track progress. It converts raw numbers into actionable and impactful data.
- Driving real impact: Actionable and impactful data can reveal inefficiencies in processes and supply chains. By analyzing resource flows, you can identify opportunities to reduce raw material consumption, optimize energy usage, re-imagine products for reuse and recycling, and minimize waste, and in the same time lowering costs and environmental impact.
People (S)
- Foster an equitable workplace: Data on employee well-being, health and safety, pay equity, and Diversity, Equity & Inclusion (DEI) metrics can assist organizations create a more supportive culture, which can attract and retain top talent.
- Ensure a transparent supply chain: Reliable data allows businesses to trace their supply chains to monitor labor standards, uphold human rights, and ensure fair working conditions. This can shed a light on; reputational risk, meeting consumer demands for ethical products, and complying with supply chain due diligence regulations.
- Build stakeholder trust and credibility: Reliable sustainability data allows businesses to communicate social impact to customers, the supply chain and stakeholders, which in turn can lead to the lasting trust that underpins long-term success.
Profit (G)
- Strengthen risk management and business resilience: In general data is fundamental in identifying and managing risks, from climate events disrupting operations to transitional risks like shifting regulations and consumer preferences.
- Unlock growth and innovation: Sustainability data can reveal opportunities for cost savings (e.g., through energy efficiency), new revenue streams from more sustainable products and services, and enhanced brand value.
- Ensure compliance and access to capital: With the global regulatory landscape going through rapid changes (e.g., EU's CSRD), sustainability data is essential for compliance, audit preparedness, and avoiding penalties. Furthermore, investors and financial institutions increasingly use ESG data to allocate capital, making strong data critical for securing favorable investment and financing.
The Klappir approach
The Klappir Sustainability Platform is designed and developed to assist organizations in collecting, managing, analyzing and reporting on sustainability data. Our main focus is on transforming raw data into value adding information that fuels accurate sustainability accounting and can have a positive effect on the bottom line. Another crucial aspect of the Sustainability Platform is the Klappir Ecosystem. We believe that tackling sustainability challenges calls for an ecosystem approach, where we come together and tackle the sustainability challenge. In the Klappir Ecosystem, over 4,000 organizations, governments, NGOs, experts, advisors, and businesses (to name a few), choose sustainability ecosystem mindsets and operations. Together we move away from isolated, high-risk, compliance-chasing projects toward more connected long-term sustainable development.
Instead of reacting to shifting regulations in silos, organizations can become part of a digital sustainability ecosystem, one that provides a shared and transparent view of sustainability performance across interconnected entities.
Understanding and disclosing your sustainability data is no longer a siloed activity but a shared experience of the businesses sharing sustainability data within the Klappir Sustainability Platform. We believe it is the key to navigating global sustainability expectations and building a more sustainable future.
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