The effects of climate change and social issues can be seen everywhere in our world – including in the world of business. ESG and impact investing have grown substantially in the past few years and are expected to continue growing in. At the centre of it all – data.
Investors in this space must consider a company’s ESG record when making an investment decisions. To understand how a company is performing according to ESG or impact, you must look at the data.
For investors who are used to focusing only on financial metrics, this can be exhausting. The vast amount of ESG data available in recent years can be daunting when trying to find what you need, and what is just muddying the water. Software built to help you understand your data and report on it can help.
Instead of having analysts spend countless hours sifting through data – AI-driven software can do the work instantly. Additionally, delivering insights and outputs that can streamline your reporting process, giving you and your stakeholders a clear idea of companies holistic performance. Keep reading to dig into how exactly this can be done!
Making Informed Decisions with the Help of Sustainability Software
The type of technology that we are talking about is specifically sustainability software. Designed to help you gather, consolidate, and transform data quickly for a more streamlined reporting process. Check out some of the main features of our sustainability software below:
- Materiality Assessments, Net-Zero Emission Programs, and Impact KPIs: improve consistency and comparability of reporting integrating ESG frameworks to ensure focus is on measuring progress.
- Improve the quality and consistency of data collected from any source, such as company reports, regulatory filings, third-party providers, utility bills, and websites with ScriptString.AI natural language processing.
- Enhance accuracy, completeness, and reliability of ESG information using AI-driven data verification and authentication processes.
Even before investing in a new portfolio company or taking on a venture, built in materiality assessments can help you make an informed decision about the investment. This will continue during your whole relationship with a company as an investor. With useful information right at your fingertips you will be able to continuously make informed decisions throughout the investment journey.
Feel confident in the data you are using to take your next steps as a firm.
AI recommendations be useful as well – if measuring impact you can gain recommendations for what you should implement to make an even greater impact in that area.
Choosing Not to Make Use of Sustainability Software
Many firms and VCs choose not to use this new type of software, sticking with excel instead. While that may work while the fund is small – it still has its risk.
With the recent crackdowns on ESG funds, forcing reclassifications and issues for many due to greenwashing, there is no time like now to make sure your investment is truly sustainable.
Since the market for ESG and Impact investments is continuing to grow, being able to showcase to stakeholders the true performance of your investments can give you an advantage. Data does not lie, especially high-quality data.
As regulations increase, this will be more necessary as well. Staying on top of the data while portfolio companies need to report to multiple frameworks will be crucial.
Try it Today – For Free
While sustainability software is an investment that your firm needs to decide to make, we want you to be able to see the advantages of using it to make that decision easier.
Our in-software, materiality assessment can be used to assess your firm, a portfolio company, or a venture companies overall sustainability with just a 60-minute survey. Built off the Basic Sustainability Assessment Tool the assessment shows progress towards science-based goals. After completion, you will receive a dashboard with a breakdown of your results in different categories, so you can know where you are excelling and where work should be focused.
Valued at $2500, we are offering the assessment for free so you can get a look into how our software works and see first-hand how it can help you!
