ESG and data: understand this relationship
Posted: Sun Dec 22, 2024 4:54 am
In recent years, the acronym ESG has gained prominence in the corporate world, companies are increasingly aware of the need to adopt sustainable and ethical practices to ensure not only financial success, but also a positive contribution to the planet and society.
As the importance of ESG grows, so does the data economy. Data is an increasingly important element in the corporate environment, and is increasingly seen as an asset for companies. As such, it is closely linked to the different aspects of ESG. Do you understand the connection between them?
In this article, we will explore the relationship between ESG practices and data policies , highlighting how an ethical approach across the information chain has become an indispensable part of corporate responsibility. Stay tuned!
What is ESG?
To understand the relationship between ESG and data , it is essential to first delve into the pillars that make up this rising acronym.
ESG, an acronym for Environmental, Social and Governance , refers to the criteria that companies adopt to evaluate their performance in three key areas: environmental, social and governance.
Each of these dimensions plays a vital role in determining the long-term performance and value of an organization.
1. Environmental (E)
This aspect assesses how a company manages its environmental impacts , including issues such as:
Carbon emissions;
Waste management;
Energy efficiency;
Conservation of natural resources.
Companies with solid environmental practices are focused on sustainability and reducing their negative impact on the environment.
2. Social (S)
The social component of ESG highlights how companies address social issues , including:
Diversity and inclusion;
Labor relations;
Human rights;
Social responsibility.
Socially responsible organizations seek to create equitable work environments and contribute positively to the communities in which they operate.
3. Governance (G)
Corporate governance refers to a company's leadership structures, internal policies, transparency, and financial accountability.
Good governance practices ensure that companies are managed ethically, with transparent and responsible decision-making.
The growing importance of ESG reflects the changing expectations of investors and consumers, who now value companies committed to sustainability and social responsibility .
These criteria go beyond simple financial return, recognizing the need for companies to also act as positive agents of change for society.
Understand the relationship between data and ESG
1. Data and the environment (E)
The past few years have highlighted the environmental impact of mass data processing. Processing bitcoin transactions already consumes more energy than Argentina. Tech companies are responsible for more than 14% of the planet’s carbon emissions. And training a generative AI model like ChatGPT has an environmental impact equivalent to 56 years of a person’s life.
To truly comply with environmental best practices, companies need to carefully consider the environmental impact of their entire operations, including all of their work with data, from collecting it to making decisions based on it. Data platforms like BigDataCorp help reduce this impact by centralizing the process of collecting and processing information and distributing the environmental cost across a multitude of customers.
The use of qualified and structured data also australia business mailing list accelerates the entire data processing, analysis and modeling cycle, reducing first, second and third order emissions associated with these activities, in addition to also bringing a reduction in the total cost of working with data.
2. Data and society (S)
Data is an invisible element that permeates virtually all corporate processes, which often leads to unexpected consequences. The most common example of this is the application of statistical models and other data analyses in corporate recruitment processes. Virtually all automatic and semi-automatic mechanisms for analyzing resumes and filtering candidates are discriminatory, due to the implicit biases contained in the data.
The same biases and distortions impact all types of operational processes. Credit granting models, for the most part, use data indicative of the financial capacity of individuals (or companies), practically guaranteeing that those who need access to financial resources the most will not be able to do so. Fraud prevention processes, especially in retail and e-commerce, give great weight to the product's delivery address, thus carrying all the distortions and prejudices that are embedded in the geographic distribution of cities. For a company to truly map its social impact, understanding the problems contained in the data used is essential.
However, it is not only in operational processes that data impacts social issues. One of the most common problems in the use of data is the lack of control and management over the origin of the data. This lack of control causes many companies to use illicit and incorrect data to make decisions and take action on a daily basis. To ensure compliance with the social component of ESG, it is essential to use data such as that from BigDataCorp, which has proven legitimacy and origin and a commitment to the security of companies and people.
3. Data and governance (G)
Within the ESG context, the governance dimension plays a central role in determining a company's integrity and operational ethics. Robust governance goes beyond the organizational structure, extending to the entire data production chain, from its collection to its use.
Effective governance begins with transparency in operations. Companies must disclose financial information, be accountable to business partners , and effectively communicate their impact to society. Data, therefore, is a fundamental element of governance.
But data impacts governance not only in the disclosure of results and reports. One of the basic governance requirements of a company is the protection of data, both internal and that of its customers. In the same way that a company needs to be transparent with its own numbers, data protection requires transparency in the treatment of personal information of customers, employees and business partners.
Successful governance involves adopting ethical standards and integrity in decision-making processes. All decision-making processes in any company use data as their raw material. Thus, the future of data protection requires the application of ethical principles in the collection, storage and use of personal information.
Finally, effective governance involves proactively identifying and managing risks. In the context of risk, risk management is related not only to information security and preventing data breaches, but also to the potential impact of data misuse.
The first two risks are easier to map. Companies that incorporate ESG practices recognize that exposure to data security risks can impact not only their reputation but also their long-term sustainability.
Using data without effectively mapping its origin poses additional risks for companies. The LGPD states that the responsibility for the use of improper or illicit information falls entirely on companies, making the management of the origin of information an essential component of corporate governance.
BigDataCorp: Data Compliance Beyond LGPD
In the information age, data protection is a central concern for companies and individuals. And BigDataCorp , as an innovative datatech, understands the importance of following the main data protection standards.
As an ISO 27001 certified company, we are committed to information security and the confidentiality of your data, establishing these as fundamental pillars of the company, towards even more lasting partnerships, continuous customer satisfaction and an increasingly sustainable business.
Furthermore, one of our fundamental distinctions is the guarantee of the origin of our information. At BigDataCorp, we ensure that all information comes from public and reliable sources.
As the importance of ESG grows, so does the data economy. Data is an increasingly important element in the corporate environment, and is increasingly seen as an asset for companies. As such, it is closely linked to the different aspects of ESG. Do you understand the connection between them?
In this article, we will explore the relationship between ESG practices and data policies , highlighting how an ethical approach across the information chain has become an indispensable part of corporate responsibility. Stay tuned!
What is ESG?
To understand the relationship between ESG and data , it is essential to first delve into the pillars that make up this rising acronym.
ESG, an acronym for Environmental, Social and Governance , refers to the criteria that companies adopt to evaluate their performance in three key areas: environmental, social and governance.
Each of these dimensions plays a vital role in determining the long-term performance and value of an organization.
1. Environmental (E)
This aspect assesses how a company manages its environmental impacts , including issues such as:
Carbon emissions;
Waste management;
Energy efficiency;
Conservation of natural resources.
Companies with solid environmental practices are focused on sustainability and reducing their negative impact on the environment.
2. Social (S)
The social component of ESG highlights how companies address social issues , including:
Diversity and inclusion;
Labor relations;
Human rights;
Social responsibility.
Socially responsible organizations seek to create equitable work environments and contribute positively to the communities in which they operate.
3. Governance (G)
Corporate governance refers to a company's leadership structures, internal policies, transparency, and financial accountability.
Good governance practices ensure that companies are managed ethically, with transparent and responsible decision-making.
The growing importance of ESG reflects the changing expectations of investors and consumers, who now value companies committed to sustainability and social responsibility .
These criteria go beyond simple financial return, recognizing the need for companies to also act as positive agents of change for society.
Understand the relationship between data and ESG
1. Data and the environment (E)
The past few years have highlighted the environmental impact of mass data processing. Processing bitcoin transactions already consumes more energy than Argentina. Tech companies are responsible for more than 14% of the planet’s carbon emissions. And training a generative AI model like ChatGPT has an environmental impact equivalent to 56 years of a person’s life.
To truly comply with environmental best practices, companies need to carefully consider the environmental impact of their entire operations, including all of their work with data, from collecting it to making decisions based on it. Data platforms like BigDataCorp help reduce this impact by centralizing the process of collecting and processing information and distributing the environmental cost across a multitude of customers.
The use of qualified and structured data also australia business mailing list accelerates the entire data processing, analysis and modeling cycle, reducing first, second and third order emissions associated with these activities, in addition to also bringing a reduction in the total cost of working with data.
2. Data and society (S)
Data is an invisible element that permeates virtually all corporate processes, which often leads to unexpected consequences. The most common example of this is the application of statistical models and other data analyses in corporate recruitment processes. Virtually all automatic and semi-automatic mechanisms for analyzing resumes and filtering candidates are discriminatory, due to the implicit biases contained in the data.
The same biases and distortions impact all types of operational processes. Credit granting models, for the most part, use data indicative of the financial capacity of individuals (or companies), practically guaranteeing that those who need access to financial resources the most will not be able to do so. Fraud prevention processes, especially in retail and e-commerce, give great weight to the product's delivery address, thus carrying all the distortions and prejudices that are embedded in the geographic distribution of cities. For a company to truly map its social impact, understanding the problems contained in the data used is essential.
However, it is not only in operational processes that data impacts social issues. One of the most common problems in the use of data is the lack of control and management over the origin of the data. This lack of control causes many companies to use illicit and incorrect data to make decisions and take action on a daily basis. To ensure compliance with the social component of ESG, it is essential to use data such as that from BigDataCorp, which has proven legitimacy and origin and a commitment to the security of companies and people.
3. Data and governance (G)
Within the ESG context, the governance dimension plays a central role in determining a company's integrity and operational ethics. Robust governance goes beyond the organizational structure, extending to the entire data production chain, from its collection to its use.
Effective governance begins with transparency in operations. Companies must disclose financial information, be accountable to business partners , and effectively communicate their impact to society. Data, therefore, is a fundamental element of governance.
But data impacts governance not only in the disclosure of results and reports. One of the basic governance requirements of a company is the protection of data, both internal and that of its customers. In the same way that a company needs to be transparent with its own numbers, data protection requires transparency in the treatment of personal information of customers, employees and business partners.
Successful governance involves adopting ethical standards and integrity in decision-making processes. All decision-making processes in any company use data as their raw material. Thus, the future of data protection requires the application of ethical principles in the collection, storage and use of personal information.
Finally, effective governance involves proactively identifying and managing risks. In the context of risk, risk management is related not only to information security and preventing data breaches, but also to the potential impact of data misuse.
The first two risks are easier to map. Companies that incorporate ESG practices recognize that exposure to data security risks can impact not only their reputation but also their long-term sustainability.
Using data without effectively mapping its origin poses additional risks for companies. The LGPD states that the responsibility for the use of improper or illicit information falls entirely on companies, making the management of the origin of information an essential component of corporate governance.
BigDataCorp: Data Compliance Beyond LGPD
In the information age, data protection is a central concern for companies and individuals. And BigDataCorp , as an innovative datatech, understands the importance of following the main data protection standards.
As an ISO 27001 certified company, we are committed to information security and the confidentiality of your data, establishing these as fundamental pillars of the company, towards even more lasting partnerships, continuous customer satisfaction and an increasingly sustainable business.
Furthermore, one of our fundamental distinctions is the guarantee of the origin of our information. At BigDataCorp, we ensure that all information comes from public and reliable sources.