### International ESG Day: An Opportunity to Reflect and Act

November 30 is a significant date as it marks the celebration of International ESG Day. This day is dedicated to promoting the principles of environmental sustainability, social responsibility, and ethical governance. ESG criteria, which stand for Environmental, Social, and Governance, provide an essential compass for navigating towards more sustainable and responsible business practices. Therefore, International ESG Day offers a valuable opportunity to reflect on the importance of monitoring and improving corporate performance in these three areas, highlighting the effective management of data and the need to move away from outdated tools.

### The ESG Data Report: A Necessary Abandonment of Traditional Tools

It is surprising to note that nearly half of companies, 47%, continue to rely on spreadsheets to manage their ESG data. This finding from recent studies indicates a significant contradiction with the growing focus on sustainability and social responsibility. Publicly traded companies, according to a specific report, invest an average of between $220,000 and $480,000 per year in ESG ratings and related services. Private enterprises are not far behind, facing annual expenses ranging from $210,000 to $425,000. In light of these investments, 90% of organizations involved in the study expressed their intention to increase their sustainability budget over the next three years.

However, managing data through spreadsheets carries numerous risks, including the potential for errors and challenges in collecting and analyzing information. These factors undermine the credibility of ESG programs, which require verifiable and accurate data to meet the needs of stakeholders and regulatory bodies. The pressures that companies face stem from both investor and corporate interest in sustainability, as well as the necessity for regulatory compliance, especially in Europe. Laws such as the Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD) require companies to adopt clear and detailed ESG reporting practices.

### The Rise of the ESG Software and Data Hub Market

The growing need for advanced technological solutions for ESG data management is fueling the dedicated software market, which is expected to reach $2.7 billion globally by 2032. Companies are looking for scalable and rapid solutions that can centralize sustainability data, ensuring crystal-clear transparency and timely responses to the needs of regulators and investors.

Centralizing data has become a priority. Consequently, systems like the “Data Hub” are emerging, aggregating information from various sources and making it quickly accessible to banks, institutions, and citizens. The “Fast Data” approach allows for immediate processing of data, increasing operational efficiency and ensuring greater transparency.

### Advantages of Adopting ESG Software

The integration of ESG software equipped with a Data Hub brings a series of significant benefits:

1. **Simplification of ESG Ratings**: Dedicated software allows for clear metrics to be defined, creating an effective and applicable rating across various business contexts.

2. **Improved Collaboration and Data Sharing**: It enhances interaction among different departments within the organization, facilitating data collection and sharing while ensuring alignment with reporting standards.

3. **Reduction of Human Error**: By centralizing and verifying data from multiple sources, the software minimizes manual workload and the potential for errors.

4. **Operational Sustainability**: It optimizes business strategies to reduce emissions and energy costs while enhancing economic efficiency.

5. **Governance Optimization**: It enables…