Why Incorporating ESG Data is Crucial for Your Net Zero Strategy

UKGBC member Globechain outline the importance of ESG data in driving positive environmental and social outcomes and avoid greenwashing.

With COP28 approaching, organisations and countries are increasingly setting, reviewing and ramping up ambition of their net-zero targets to mitigate against the climate crisis. A common challenge in this process lies in implementing plans into daily operations and accurately measuring the progress. One essential tool to track progress is ESG (Environmental, Social, and Governance) data, which has become a buzzword in recent times. However, without a standard definition and regulation, there is a risk of such data being misused for greenwashing purposes, which can be detrimental to the overall cause of sustainability. Thus, it is imperative that there is greater clarity and transparency in the use of ESG data to ensure that it delivers on its intended purpose of driving positive environmental and social outcomes.

Greenwashing Around ESG Data

It’s unfortunate that some companies have resorted to greenwashing in their ESG reporting. Inaccurate or incomplete data and loopholes in the system have allowed them to create a false sense of sustainability progress. This has resulted in a lack of meaningful action being taken towards sustainability goals. However, this issue has been brought to light in recent years, and yet it is important to note the negative perception it has created around the actual value of ESG data. This has resulted in some organizations not sharing their ESG impact for fear of judgement or backlash, which is now known as greenhushing. Fortunately, more stringent regulations and frameworks are being developed, allowing for everyone to be measured equally. This will enable companies to have a benchmark to measure themselves against and, thus, improve their ESG performance. When considering ESG data for your net-zero strategy, ensuring that the information reported is transparent and accurate is crucial.

What to Truly Measure

When it comes to evaluating ESG data, it can be a challenging task to determine which metrics to use. Simply reporting a certain percentage is not enough to paint a complete picture of the impact. Instead, it is essential to delve deeper and consider various factors beyond the numbers. These factors include the environmental benefits of your actions, the economic savings achieved, and the social impact of creating opportunities for employment and community development. To get a more accurate picture of the impact, it is important to include both tangible and intangible impacts through data and social proof such as case studies, feedback and testimonials. Doing so adds valuable credibility to the measurement of ESG data. Overall, it is critical to go beyond the numbers and consider a range of factors to get a complete picture of the impact.

The Genuine Impact and How to Make Tangible Decisions

Integrating ESG data into your company’s net zero strategy is of utmost importance. This integration will ensure informed decisions are made, which will pave the way for achieving sustainability goals. By utilizing ESG data, your company can make data-driven decisions that have measurable environmental and social benefits. In addition, such data can help identify areas where further action can be taken to achieve more significant progress towards sustainability. Failure to incorporate genuine ESG data in your net zero strategy can lead to greenwashing, inaccurate reporting, and a lack of meaningful action towards sustainability goals. Therefore, making conscious and data-driven decisions is crucial, not only to achieve set organizational goals but for a better future for ourselves and our planet.

Globechain is a UKGBC member whose ESG reuse marketplace facilitates the reuse of products and materials, providing companies with a measurable solution that contributes to their sustainability goals. Learn more about what it means to be a UKGBC member here.

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