Tackle ESG risks and unlock opportunities with our cloud-native data foundation solution.
ESG issues have become the main agenda in every company's board room. However, these issues have significant room for improvement, and the solutions should be delivered right about now. With standards complexity impeding ESG effectiveness and overwhelming calls for cohesive reporting frameworks and standardized taxonomy. Birlasoft can help!
With companies aiming to achieve net-zero by 2050, the race to dial down the emissions has begun. The solutions to the issues concerning data privacy are the next big thing to ensure credibility and develop a sense of trust among customers. Also, corporate governance issues can be solved by prioritizing broader ESG positioning – audit and internal controls, anti-competitive practices, philanthropy, and more.
Let’s get you started tackling ESG risks and unlocking opportunities with Birlasoft’s cloud-native data foundation solution.
Learn About ESG
- ESG stands for Environmental, Social, and Governance (Corporate). These are the three broad categories or areas of interest for investors with a socially responsible vision.
- The concerns around ESG are growing as more of the millennial generation are taking seats on the board of companies.
ESG - Environmental
Environmental criteria include the efforts a company is taking to go green. Such as using renewable energy sources, its waste management program, handling potential air or water pollution problems arising from its operations, and its attitude and actions around climate change issues. We can help solve all these problems. Organizations are enhancing climate knowledge throughout and are working to integrate climate risk considerations into new and existing processes.
Net-Zero by 2050: Data suggests that around 51 billion tons of greenhouse gasses are added to the atmosphere every year. So, the arduous task of companies around the globe is that they need to get these 51 billion tons of greenhouse gas emissions down to zero in less than 30 years to avoid a climate disaster. For this to happen, we need to start working now.
Consumer Expectations: With growing awareness about the climate's threats, demand for environment-friendly products and services will increase. We have been actively working on reshaping financial institutions to achieve carbon-neutral brands.
Investors: According to a recent survey conducted by a financial firm, about 90% of millennial investors were interested in pursuing investments that resonate with their vision of being socially responsible.
Investors look for accurate reports that are aligned to Global Reporting Initiative (GRI), Global Real Estate Sustainability Benchmark (GRESB), Sustainability Accounting Standards Board (SASB), Sustainable Finance Disclosure Regulation (SFDR), Sustainable Development Goals (SDG), etc. We can help with these.
ESG Reporting: With standards complexity delaying ESG effectiveness and overwhelming calls for cohesive reporting frameworks and standardized taxonomy. Our cloud-native initiative is designed to help in such cases.
Impact: Suppliers and partners will expect action plans to demonstrate climate risk strategy handling physical and transition risks under various scenarios.
ESG - Social
The ambit of social criteria under ESG is vast, and it covers a vast range of potential issues. However, most of the social aspects of ESG are essentially about social relationships. From the viewpoint of socially responsible investors, one of the most prominent relationships for a company is its relationship with its employees. What policies does the company follow to better the employer-employee relationship?
Workforce: Workplace policies regarding Diversity, Equity, inclusion, and prevention of sexual harassment define how a company stands up for its employees. Employee turnover depends on these factors, and thus these need to be considered.
Community Involvement & Behavior: Promote labor relations, its impact on society, and how it impacts the company's products and services. Millennial investors are interested in respect for working hours and improving labor health and safety conditions. Also, is the pay an employee gets in a company fair compared to comparable jobs or similar positions throughout the industry.
Privacy: Consumers are increasingly adopting digital technology. The data generated from the pool of consumers creates an opportunity for enterprises to improve their consumer engagement. It also gives them the responsibility to keep the consumer data safe. This data is highly valuable to companies as the total global value of digital advertising is now estimated at $300 billion. Therefore, companies are expected to invest more in data security and privacy within their ESG efforts. With increasing cyber-threats, increased security to maintain data privacy will add credibility to the company's future-ready programs.
DEI (Diversity, Equity, and Inclusion): With ESG-concerned investors, it can make a big difference in the evaluation of your company. As per a report, nearly 65% Investors have incorporated into diversity, equity & inclusion (DEI).
Seek diverse partners: Share and publish commitments to advancing social impact issues and choose partners that resonate with your thoughts and accelerate your vision.
ESG - Governance
While looking at Governance from the prism of ESG, we find that it is about how the top-level executive offices manage a company. Governance here means how well are the interests of the company's various stakeholders – employees, suppliers, shareholders, and customers attended by the management and the board of directors? For these to happen, a company needs to consider the following:
Board Transparency: ESG issues should become part of the regular board's agenda. As soon as ESG issues start getting a place in the boardroom regularly, there will be significant room for improvement.
Diversity: Companies should be doing more to promote racial and gender diversity in the workplace and among corporate directors.
Corporate Governance: Corporate Governance is about the board of directors' vision and how they govern and oversee the organization's operations. It is entirely different from the day-to-day operations set by the top floor executives of a company. The top executives need to prioritize broader ESG positioning – audit and internal controls, anti-competitive practices, philanthropy, etc.
Executive Compensation: The issue of executive compensation is a primary focus of many ESG investors. ESG investors don't favor multi-million-dollar bonuses for executives, while the company imposes a salary freeze for all other employees. The top executives need to ask these questions: Is extra compensation for executives appropriately tied to increasing the business's long-term value, viability, and profitability?
Accounting Transparency: Financial and accounting transparency and full and honest financial reporting are key elements of good Corporate Governance.
ESG Implications For Various Business Verticals
ESG assets are projected to hit $53 trillion by 2025, a third of global AUM and nearly 39% Investors have currently invested in ESG products
Build strategies to improve operational efficiency & enhance digital experiences
Establish core competencies for growth, achieve quantifiable business value
Quickly adapt to shifts in regulations & reframing supply chain
Achieve better access to resources through stronger community and government relations
Build trust with serviced communities, investors and other stakeholders.
Combat rising operating expenses, balance resource efficiency and financial performance
Avoid stranded investments caused by longer-term environmental issues
Achieve greater strategic freedom and ease out regulatory pressure
Utilize efficient production and distribution processes
ESG Reporting & Data Hub Solution
ESG Reporting
Leveraging cloud-native AI-enabled plug-and-play solutions to deliver a full breadth of ESG regulatory assessments while supporting ESG frameworks and standards.
ESG Data Hub
Quick deploy framework and platform-specific blueprints integrating ESG data from internal, 3rd party providers, distilling key insights from data visualization tools.
Data Management & Data Governance
Capture and manage all your data in a single record system and report confidently.
Portfolio Screening & Analytics
Analyze investment portfolios covering public and private assets.
Bespoke Dashboards
Design monitoring dashboards per your risk preference.
Push & Pull API
Centralize reporting and distribute insights by building and subscribing to applications.
Our Offerings
ESG Reporting
- ESG Disclosure reporting
- Global standards for sustainability reporting
- Sustainability Accounting Standards Board
- Value Reporting Foundation
- Climate-Related Financial Disclosures
ESG Data Hub
- Quick deploy framework
- Platform-specific framework
- A single system of record to manage all your data
- Portfolio Screening & Analytics
- Centralize reporting with our Push & Pull API
Why Choose Birlasoft?
25+ Years of technology consulting experience in the banking and financial services industry
30+ Financial services clients, 20+ solutions with over 15 global locations
We have experts working round the clock in all major service lines: banking, capital markets, and insurance
Be future-ready while meeting all global sustainability standards.
Let’s connect now
Key Partnerships
