114 V I EWPO I NT ERP for sustainability Simplifying corporate environmental, social and governance data can secure businesses’ long-term success Instrumental, encyclopaedic, priority, priceless – ask any business leader to describe an enterprise resource planning (ERP) system and they’d probably use these four adjectives. Many would say that they simply can't imagine working without one. After all, an ERP allows businesses to manage a myriad of processes, make datadriven decisions, and report on their progress – all on a singular, easy-to-use software platform. ERPs are particularly important within an organisation’s finance function. Through ultra-accurate plans, budgets and forecasts, companies can effortlessly produce standardised financial metrics required by stakeholders and reporting regulations using their ERP. In the past (and maybe still today for many companies), this financial performance data was often all that was needed to measure a business’s health, value and longevity. However, wider world developments have led to the rise of an equally crucial criterion – and a new use case for data availability. The growing importance of ESG Environmental, social and governance (ESG) issues have long been rising towards the top of corporate agendas. But in just six months, 2022 has transformed ESG into perhaps the single biggest priority for business leaders, investors and consumers alike. In April 2022, the Intergovernmental Panel on Climate Change revealed that worldwide greenhouse gas emissions must peak by 2025 if we’re to avoid irrevocable climate disaster. Meanwhile, research from international charity Oxfam showed that the Covid-19 pandemic oversaw unjust global wealth transfer and intensified gender inequality. And with social injustices, supply chain fragilities, and the ‘great resignation’ rumbling on, it’s no wonder that 60 per cent of global consumers now say sustainability is an important criterion when choosing what to purchase, according to findings from consultancy firm Simon-Kucher & Partners. As a result, the ESG efforts of a business have become integral to its operations and economic value, and a fundamental metric of success. And while I’m extremely passionate about diversity, equity and inclusion and I’m convinced it’s the solution for many issues, for now I want to consider the critical significance of data in our transition towards net-zero emissions. Decarbonisation is about data availability It’s clear that the world needs to decarbonise fast. Organisations and their leaders must first take responsibility for their environmental impact. A CDP report shows that just 100 companies have produced over 70 per cent of the world’s emissions since 1988, while thousands more continue to pursue short-term profits over long-term sustainability. As of early 2020, only 23 per cent of the Fortune 500 had set meaningful commitments to carbon neutrality, climate action, or both, according to research from Natural Capital Partners. Progress in European-headquartered Fortune Global 500 companies has been slightly more promising, with 42 per cent already taking action OL I V I E R B LUM : S CHNE I DE R E L E C T R I C “2022 has transformed ESG into perhaps the single biggest priority for business leaders, investors and consumers”
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