ESG data need to be sourced from all areas of an organization, which can sometimes be distorted.
Companies looking to bolster their systems to authenticate the accuracy of their ESG data can take the following steps.
📌 Conduct a reconciliation to verify data against their data sources and uncover inconsistencies and irregularities.
📌 Based on certain risk-based key indicators ask your your suppliers to complete a questionnaire questionnaires driving a complementary internal risk assessment. Where necessary, do a physical review of the supplier.
📌 Engage a third-party to verify the authenticity of your sustainability reporting and underlying data.
As you can see, ensuring accurate data to to assess ESG’s performance is critical. Any ambiguous data can draw undesirable scrutiny. Also, investors require data they can trust to avoid adding greenwashing to their portfolios.
Synvance as a management and technology consulting company is advising companies regarding their key transformation activities like ESG or data management from identification to business-as-usual.