24 Jul ESG for Maximizing Information Governance Business Value
As information governance (IG) professionals, the emergence of Environmental, Social, and Governance (ESG) reporting has presented us with an opportunity to push our organizations forward. Information tells a story, and your role is key to boosting its value.
If you haven’t already, check out our blog, “Information’s Role in ESG.”
The disclosures in ESG reports form a narrative that is grounded in data – in the information retained and managed according to your organization’s policies and procedures. Because of this, roles within IG are in a unique position to bring the enterprise view of information.
Professionals in IG, Information Technology (IT), and legal should look at this as an opportunity to elevate their strategic role, bringing their valuable perspective to the corporate leadership table.
McKinsey on ESG: “Global sustainable investment now tops $30 trillion—up 68 percent since 2014 and tenfold since 2004. The acceleration has been driven by heightened social, governmental, and consumer attention on the broader impact of corporations, as well as by the investors and executives who realize that a strong ESG proposition can safeguard a company’s long-term success. The magnitude of investment flow suggests that ESG is much more than a fad or a feel-good exercise.”
As information governance (IG) professionals, the emergence of Environmental, Social, and Governance (ESG) reporting has presented us with an opportunity to push our organizations forward. Information tells a story, and your role is key to boosting its value.
The disclosures in ESG reports form a narrative that is grounded in data – in the information retained and managed according to your organization’s policies and procedures. Because of this, roles within IG are in a unique position to bring the enterprise view of information.
Professionals in IG, Information Technology (IT), and legal should look at this as an opportunity to elevate their strategic role, bringing their valuable perspective to the corporate leadership table.
If you haven’t already, check out our blog, “Information’s Role in ESG.”
McKinsey on ESG: “Global sustainable investment now tops $30 trillion—up 68 percent since 2014 and tenfold since 2004. The acceleration has been driven by heightened social, governmental, and consumer attention on the broader impact of corporations, as well as by the investors and executives who realize that a strong ESG proposition can safeguard a company’s long-term success. The magnitude of investment flow suggests that ESG is much more than a fad or a feel-good exercise.”
As information governance (IG) professionals, the emergence of Environmental, Social, and Governance (ESG) reporting has presented us with an opportunity to push our organizations forward. Information tells a story, and your role is key to boosting its value.
The disclosures in ESG reports form a narrative that is grounded in data – in the information retained and managed according to your organization’s policies and procedures. Because of this, roles within IG are in a unique position to bring the enterprise view of information.
Professionals in IG, Information Technology (IT), and legal should look at this as an opportunity to elevate their strategic role, bringing their valuable perspective to the corporate leadership table.
BRINGING YOUR EXPERTISE TO THE TABLE
ARMA International’s Generally Accepted Recordkeeping Principles®, or The Principles for short, provide a “code of conduct” and can serve as a guide to maximize value – even for ESG reporting. Here’s how:
1. The Principle of Accountability says a senior executive should lead IG and designate responsibility to the appropriate individuals. In doing so, an organization recognizes its role in being accountable for its information assets.
Organizations that can vouch for the integrity and security of their information will be valued higher by stakeholders, putting them in a better position to tell their story through ESG reporting.
2. The Principle of Transparency states that IG programs and processes should be documented, and that documentation should be open, verifiable, and available to all employees and appropriate parties.
As a leader, you’re able to demonstrate assurance to internal and external stakeholders that information is well-managed, and responsibilities are taken seriously.
The ESG report should also be open, verifiable, and available. Those with a vested interest should know where the information came from and its accuracy.
3. The Principle of Integrity says an organization’s information assets should have a reasonable guarantee of authenticity and reliability. So, again, those with a vested interest in the ESG report (employees, current and potential investors, and the surrounding community) should know that the information provided is accurate and reliable.
Trusted information is becoming a new currency – a currency that you help manage through proper controls and standards.
4. According to The Principle of Protection, IG should assign and ensure an appropriate level of protection to its organization’s information assets. While ESG reporting is all about remaining open and transparent, confidential information should remain protected throughout the process to ensure business continuity.
You can use your expertise to mitigate fears of unauthorized disclosure through the explanation of the organization’s security model as well as related policies and procedures.
5. The Principle of Compliance says IG should adhere to all applicable laws, organizational policies, and other authorities like industry standards.
Some industries are bound by law to release certain types of information, especially pertaining to the environment. For example, the U.S. Environmental Protection Agency’s Greenhouse Gas Reporting Program (GHGRP) requires certain facilities (like oil and gas) to not only report emissions, but also make that data available to the public.
When it comes to ESG reporting, you have an opportunity to highlight metrics and data that may already exist to demonstrate compliance and emphasize the importance of measurable progress.
6. The Principle of Availability states that IG should ensure a timely, efficient, and accurate retrieval of information assets. To prep for an ESG report, information professionals should review the enterprise data map and re-evaluate the security model so that the needed information can be easily found and accessed.
Your role is to promote the tools and techniques for timely retrieval of information as well as make the case for breaking down silos that are getting in the way of collecting information.
7. The Principle of Retention says information assets should be maintained for an appropriate amount of time, according to legal, regulatory, fiscal, operational, and historical requirements.
ESG information is no exception. If there are gaps in desired data or information, you’re the one who can advise on what and how to capture this data as part of the associated business processes.
8. The last principle, The Principle of Disposition, says information assets should be securely and appropriately disposed of once it meets retention.
Is redundant, outdated, and trivial (ROT) information clogging repositories and making it harder (and more expensive!) to identify what you need for ESG disclosures? Then, your role is to advocate for the benefits of routine disposition practices, that will contribute to the overall responsiveness in ESG reporting.
While incorporating the Principles is a key factor, it’s not the only way to maximize your information’s value and elevate your strategic role. To achieve that, you’ll need a proven successful and scalable information governance model in place.
As information governance (IG) professionals, the emergence of Environmental, Social, and Governance (ESG) reporting has presented us with an opportunity to push our organizations forward. Information tells a story, and your role is key to boosting its value.
If you haven’t already, check out our blog, “Information’s Role in ESG.”
The disclosures in ESG reports form a narrative that is grounded in data – in the information retained and managed according to your organization’s policies and procedures. Because of this, roles within IG are in a unique position to bring the enterprise view of information.
Professionals in IG, Information Technology (IT), and legal should look at this as an opportunity to elevate their strategic role, bringing their valuable perspective to the corporate leadership table.
BRINGING YOUR EXPERTISE TO THE TABLE
ARMA International’s Generally Accepted Recordkeeping Principles®, or The Principles for short, provide a “code of conduct” and can serve as a guide to maximize value – even for ESG reporting. Here’s how:
1. The Principle of Accountability says a senior executive should lead IG and designate responsibility to the appropriate individuals. In doing so, an organization recognizes its role in being accountable for its information assets.
McKinsey on ESG: “Global sustainable investment now tops $30 trillion—up 68 percent since 2014 and tenfold since 2004. The acceleration has been driven by heightened social, governmental, and consumer attention on the broader impact of corporations, as well as by the investors and executives who realize that a strong ESG proposition can safeguard a company’s long-term success. The magnitude of investment flow suggests that ESG is much more than a fad or a feel-good exercise.”
Organizations that can vouch for the integrity and security of their information will be valued higher by stakeholders, putting them in a better position to tell their story through ESG reporting.
2. The Principle of Transparency states that IG programs and processes should be documented, and that documentation should be open, verifiable, and available to all employees and appropriate parties.
As a leader, you’re able to demonstrate assurance to internal and external stakeholders that information is well-managed, and responsibilities are taken seriously.
The ESG report should also be open, verifiable, and available. Those with a vested interest should know where the information came from and its accuracy.
3. The Principle of Integrity says an organization’s information assets should have a reasonable guarantee of authenticity and reliability. So, again, those with a vested interest in the ESG report (employees, current and potential investors, and the surrounding community) should know that the information provided is accurate and reliable.
Trusted information is becoming a new currency – a currency that you help manage through proper controls and standards.
4. According to The Principle of Protection, IG should assign and ensure an appropriate level of protection to its organization’s information assets. While ESG reporting is all about remaining open and transparent, confidential information should remain protected throughout the process to ensure business continuity.
You can use your expertise to mitigate fears of unauthorized disclosure through the explanation of the organization’s security model as well as related policies and procedures.
5. The Principle of Compliance says IG should adhere to all applicable laws, organizational policies, and other authorities like industry standards.
Some industries are bound by law to release certain types of information, especially pertaining to the environment. For example, the U.S. Environmental Protection Agency’s Greenhouse Gas Reporting Program (GHGRP) requires certain facilities (like oil and gas) to not only report emissions, but also make that data available to the public.
When it comes to ESG reporting, you have an opportunity to highlight metrics and data that may already exist to demonstrate compliance and emphasize the importance of measurable progress.
6. The Principle of Availability states that IG should ensure a timely, efficient, and accurate retrieval of information assets. To prep for an ESG report, information professionals should review the enterprise data map and re-evaluate the security model so that the needed information can be easily found and accessed.
Your role is to promote the tools and techniques for timely retrieval of information as well as make the case for breaking down silos that are getting in the way of collecting information.
7. The Principle of Retention says information assets should be maintained for an appropriate amount of time, according to legal, regulatory, fiscal, operational, and historical requirements.
ESG information is no exception. If there are gaps in desired data or information, you’re the one who can advise on what and how to capture this data as part of the associated business processes.
8. The last principle, The Principle of Disposition, says information assets should be securely and appropriately disposed of once it meets retention.
Is redundant, outdated, and trivial (ROT) information clogging repositories and making it harder (and more expensive!) to identify what you need for ESG disclosures? Then, your role is to advocate for the benefits of routine disposition practices, that will contribute to the overall responsiveness in ESG reporting.
While incorporating the Principles is a key factor, it’s not the only way to maximize your information’s value and elevate your strategic role. To achieve that, you’ll need a proven successful and scalable information governance model in place.
ADDITIONAL INFORMATION
For more, stay tuned for our next blog on Access Sciences’ 7-Point Governance Model.
