01 Sep
GCC could fast-track its sustainability goals with data driven ESG reporting
A systematic data-driven framework can help organizations in the GCC to reduce waste
Sustainability reporting can enable organizations in the middle east to reduce risk across their supply chains by improving their decision-making processes. Protiviti Member Firm for the Middle East Region has emphasized on the importance of data driven environmental, social, and governance (ESG) reporting to fast-track the region’s sustainability goals. The leading consulting firm in the region stated that a systematic data-driven framework will be equipped to help organizations in the GCC to reduce waste and also yield significant cost savings in the near future.
Furthermore, the two major global meetings, namely United Nations Climate Change Conference 2022 (COP27) in Egypt and COP28 in UAE, will place environment, social, and governance challenges high on the region’s agenda.
“Countries in the GCC currently have either implemented or are in the process of transitioning towards improved sustainability disclosure. Sustainability presents multi-dimensional and complex challenges, with varying levels of understanding across industries and organizations,” says Arindam De, Deputy CEO and Managing Director, Protiviti Member Firm for the Middle East Region.
“At Protiviti, we work closely with the industry stakeholders to effectively evaluate what ESG means for an organization, helping build, implement, execute, monitor, and report on ESG objectives that will evolve and grow with the organization. We help organizations in the GCC to understand the bigger picture, and to clearly identify where they can make a larger impact on society and the environment while maximizing performance”.
ESG reporting is garnering growing attention today, particularly among the decision makers within the public and private sectors seeking to understand and possibly comply with specific requirements in their country or their industry.
“However, when it comes to ESG reporting, there are several questions that need solid responses. Questions such as who is specifically required to issue these ESG reports or who is issuing them voluntarily and more importantly, what do organizations need in order to issue them in terms of data and operational processes are some of the prominent ones that need immediate attention,” says De.
A well-defined structure of sustainability reporting can enable organizations in GCC to measure and monitor performance against established economic, environmental, social, and governance goals. Furthermore, transparency leads to improved decision-making, more effective communication with external stakeholders, and enhanced ESG health of an organization.
“ESG reporting is not a marketing campaign but as important as the mandatory financial reporting with proper accountability. It has to be completely data-driven, only then can organizations evaluate, monitor, and achieve the progress made towards their sustainability goals. It is also important for the organisation’s internal stakeholders to comprehend the importance of ESG reporting and only then can an organization as a consolidated unit – move forward,” adds De.
“At a recent webinar conducted by Protiviti earlier this year, out of 300 plus global attendees, we observed that close to 44% of them have not started deploying a framework to capture data through IoT (Internet-of-Things), 37% of the respondents were not aware of an ESG report being published by their organization, only 36% have the primary responsibility of ESG reporting and assigned to an ESG Committee and 34% respondents stated that they are planning to increase budget in all areas of ESG. So, there is a lot of ground that organizations across the Middle East region and globally need to cover to reach closer to their sustainability goals,” explains De.
“Sustainability continues to evolve as companies recognize the value of supporting ESG issues to survive in the marketplace. Sustainability defines an organization, setting it apart from its competitors while impacting the whole organization in varying ways and intensities. However, while many companies are aware they must act, they find it difficult to strategically tackle the issue,” De says.
Source:https://gulfnews.com/business/corporate-news/gcc-could-fast-track-its-sustainability-goals-with-data-driven-esg-reporting-1.1661847047039
