ESG | Product Information Management | Smart Supplier

Molly Colbert

January 17, 2022

What is ESG?

ESG (environmental, social and governance) criteria are a set of standards for a company’s operations that socially conscious investors may use to screen potential investments.

The environmental criteria consider how a company performs as a steward of nature. The social criteria examine how companies manage relationships with employees, suppliers, customers, and the communities where they operate. The governance criteria look at a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

Why is an ESG score important?

Environmental, social and corporate governance are the three big factors when measuring sustainability and the societal impact of investing in a company or business.

ESG covers the climate crisis, sustainability, social concerns such as diversity, human rights, consumer protection and animal welfare.

ESG scoring is completed by a third-party independent company that generally give a score out of 100. The scores are calculated using metrics for comparing different investments, audit scores, quality of data and more. Having a high score will encourage investors to support brands.

The current global sustainability challenges, such as climate risk, increased regulatory pressures, social and demographic risks, represent new or increasing threats to investors. Additionally, COVID-19 has added more pressure upon the economy and has affected some companies’ exposure to ESG risk and the ability to manage them. Companies are under more scrutiny if they are not seen effectively managing ESG or climate risks.

Furthermore, advanced technology has meant ESG insight can be seen more easily and no longer relies on voluntary disclosure from companies.

Product information management (PIM) system

Recently consumers purchasing decisions have been focused more on sustainable products, so when companies are transparent and show some ESG insights towards their investors and consumers they are more likely to receive support.

NT Assure has a PIM system, Smart Supplier, which has many features integrated to enable brand owners to see insights from inputted product data. One of these features can curate KPIs and access vital ESG information. Improving an ESG score is simple once the areas to improve upon are identified.

Data can be managed from the point of entry to the finished product giving maximum control and access to view all product and supplier information easily so that it is to identify where improvements can be made.

A PIM system allows product information from various channels to be managed in one place, however, the system can support businesses in many other ways too:

• Support ESG marketing claims through reporting KPIs

• Stay legally compliant keeping customers safe

• Increase data integrity

• Make sustainability statements with confidence

• View environmental, social, and governance (ESG) standards

Why our PIM system?

Smart Supplier is a cloud-based software as a service (SaaS), allowing it to be accessed online and monitored via a centralised system.

The system is a specification management solution that provides real-time food information ensuring thousands of ingredients, recipes, and menus are live, accurate, and validated. It has established itself as the industry standard and has several features which can aid FBOS to communicate with suppliers and increase collaborative working.

Smart Supplier has reporting features that allow the status of the product data to be seen instantly so that the ESG compliance to policies can be monitored along with product legality and other important data, all in real-time.

For example, policies can be added to the dashboard, such as the provenance of palm oil, so that confidence can be achieved for ESG commitments on sustainable palm oil.

To find out more about Smart Supplier, request the whitepaper here 📰

For more information, email info@ntassure.com or ring 01933 272089 📞

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References

Environmental, Social, & Governance (ESG) Criteria Definition (investopedia.com)

ESG 101: What is Environmental, Social and Governance? - MSCI