In today’s rapidly changing business landscape, companies are increasingly realizing the importance of incorporating environmental, social, and governance (ESG) factors into their operations. ESG considerations are crucial for long-term financial performance, brand reputation, and stakeholder trust. Recognizing this, RSM has integrated an ESG reporting package into NetSuite, providing businesses with the tools to understand their ESG impact and make informed decisions aligned with their values and goals. In this blog post, we will delve into the significance of ESG in the NetSuite workspace and explore the numerous benefits it brings to businesses in collaboration with RSM.
The Environmental Pillar
RSM’s ESG Reporting Package within NetSuite empowers companies to track and manage their environmental impact. This includes monitoring greenhouse gas emissions, waste and water usage, and supply chain sustainability. By tracking these metrics, businesses can identify areas for improvement, set goals, and monitor progress in reducing their environmental footprint. This not only helps mitigate negative impacts on the planet but also leads to cost savings, increased efficiency, and enhanced reputation among environmentally conscious consumers. Ultimately, the environment pillar of ESG in NetSuite equips companies with the necessary tools to make environmentally responsible decisions while benefiting their overall business.
In the Environment dashboard, some of the metrics that can be seen are reports for the frequency of transportation, supplier information and tier distribution, as well as revenue from products.
The Social Pillar
Within the social pillar, RSM’s ESG Reporting Package enables companies to measure their impact on employees, customers, and communities. This includes features such as employee engagement surveys, tracking labor practices, promoting diversity, equity, and inclusion initiatives, and analyzing turnover rates. Focusing on the social element ensures that companies operate in a manner that upholds social responsibility, fairness, and equity. By utilizing these tools, businesses can identify areas for improvement and ensure they meet their social responsibilities. This, in turn, can result in a more engaged and motivated workforce, increased customer loyalty, improved community engagement, and reduced social risks such as negative media coverage, legal disputes, and consumer boycotts. Prioritizing social initiatives equips companies with the means to be socially responsible, sustainable, and to enhance their business simultaneously.
With employees being so important to an organization, the social dashboard keeps track of employee’s figures such as their gender, diversity, salaries and more.
Employee-related metrics: Measuring diversity, salaries, and other relevant data to enhance workforce dynamics.
Volunteer hours: Tracking employee engagement in charitable activities to foster team efficacy and community involvement.
The Governance Pillar
The ESG Reporting Package’s metrics related to the governance pillar assist companies in operating with transparency, accountability, and ethical standards. These features include tracking board diversity and structure, monitoring regulatory compliance, and assessing risk management practices. By utilizing these tools, businesses can ensure they meet legal and ethical obligations, reducing the risk of legal disputes or reputational damage. Furthermore, robust governance practices can foster improved investor confidence, access to capital, and enhanced business performance. The governance pillar of ESG in NetSuite provides companies with the necessary tools to ensure they operate with integrity and contribute to sustainable development.
The governance dashboard is where a high-level view of the organizations structure can be found. Some of the important KPI’s being measured include board diversity, executive compensation, policy transparency and more.
Compliance (incident and benefit tracking): Ensuring adherence to regulations and providing a safe work environment.
Policy transparency: Promoting awareness and transparency around organizational policies for better decision-making.
Capabilities for the Pillars
As organizations experience domestic and international growth, they quickly outgrow manual budgeting, allocation, and reporting methods. This is where ERP systems like NetSuite come into play, automating and systematizing processes to enhance efficiency in approvals, reporting, and budget control. NetSuite offers consolidated reporting capabilities for organizations with multiple entities and operations across different countries, making it an ideal solution for international expansion. NetSuite’s scalability and growth-oriented design make it an invaluable asset for businesses embracing ESG practices.
Timeline and Advisory
RSM aims to create an “Easy to implement, easy to adapt” model for organizations interested in integrating ESG metrics. Their goal is to provide a tailored solution with a flexible timeline to suit each client’s unique needs. RSM’s ESG advisors are well-equipped to assist organizations in navigating the complex ESG landscape. They offer expert guidance to help identify and align with relevant ESG metrics, understand stakeholder expectations, and provide assistance with tracking and monitoring ESG data for reporting purposes.
Key Performance Indicators and Metrics
Within RSM’s ESG Reporting Package, several key performance indicators (KPIs) and metrics are tracked across the pillars.
By integrating ESG considerations into the NetSuite workspace through RSM’s ESG Reporting Package, businesses can gain a competitive edge, mitigate risks, and contribute to sustainable development. From environmental stewardship to social responsibility and ethical governance, companies can leverage these tools to align their operations with values and goals, resulting in enhanced brand reputation, stakeholder trust, and long-term financial performance.