Digital transformation is a key enabler of sustainability

Digital transformation is a necessity for organisations of all sizes. Modernising and improving skills, processes, technologies, products and services has become crucial to the success and progress of building a digital organisation. However, there is an additional dimension where the digitalisation of operating models can contribute positively outside of the organisation and its stakeholders: sustainability.

Environmental, social and governance (ESG) issues have become more important to people, whether employees, customers or partners. There is a lot of pressure to review strategies and invest in proper processes, measurement and reporting to address concerns and comply with evolving regulations.

Organisations are looking for tools to help them in their efforts as people’s awareness of social and environmental issues and tighter government regulations compel them to consider their supplier sustainability, the ethical sourcing of materials and SHEQ (safety, health, environmental and quality factors) a lot more closely.

Regulations demand it, customers want it, our planet needs it

Most organisations have existing processes and programmes to track and report on ESG and SHEQ performance. However, digital solutions offer new opportunities. Technological advancements are continuously improving our ability to make better decisions, allocate resources more quickly and mitigate risk.

Digital solutions can offer organisations a simpler way to manage their processes and ensure that their practices meet the environmental and ethical expectations of customers and regulatory bodies. The digitalisation of data collection and agreement processes will not only help to deliver better transparency, it will also support accountability, compliance and better reporting.

Some of the digital solutions and technologies that have been created include:

Digital forms

Creating consistent and standardised forms, checklists and processes across the organisation to improve workflow and identify opportunities to reduce incidents and improve productivity.

Digital signing

Centralising the preparation, signing and management of agreements to transform manual paper-based procurement processes into accountable and transparent systems.

Data analytics

Enabling the collection of more data from additional data points to allow for better performance calculation, improve reporting requirements, and anticipate and mitigate risks.

Digital reality

Offering training, education and communication on complex products in a safe, cost-effective and realistic environment.

Drones

Performing scans of large sites, accessing areas that are difficult and dangerous to reach more quickly and while minimising human risk.

The impact of these digital solutions and technologies has been positive in the following areas:

Monitoring

The integration of sustainability criteria in contracts and the monitoring of vendors for compliance within those criteria to keep partners and suppliers accountable.

Insights

Uncovering key insights from documents regarding some of today’s most pressing sustainability concerns: waste disposal, air pollution, resource circularity and greenhouse gas emissions.

Compliance

Reporting on anti-corruption measures, taxes paid, executive remuneration and total social investment in order to hold buyers and suppliers accountable for governance compliancy.

Health and safety

Improving the health and safety of the workforce through the use of digital forms, wearable technologies, and mobile applications to monitor and manage incidents.

Visibility

Making data available in real-time from an accurate data stream. Improved visibility, analytics and reporting that is accessible anytime, anywhere from any device for better insights.

Collaboration

Improving the way employees share information and ideas, interact with each other and use data to provide better insights for the organisation.

Some of the steps that leaders can take to use digital technologies to their advantage in designing ESG and SHEQ processes and managing risk are:

Evaluate where you are

Carry out an honest assessment of where you are: people, processes and systems.

Eliminate silos

ESG and SHEQ strategies should be aligned with the digital and organisational strategy.

Assess readiness

Review readiness by assessing current capabilities and how change will affect people.

Alignment

What success looks like for you and where you would like to start.

Final thoughts

Digital transformation remains a challenge for most organisations but it offers massive opportunities. By integrating technology in everything an organisation does, leaders can create shared value to improve ESG, SHEQ and organisational needs simultaneously, ensuring that the ways in which value is created, communicated and delivered to customers is both profitable and sustainable.

If you’re looking to move from where you are to where you need to be, get in touch with our consultants today to see how we can help you navigate your digital transformation journey.