Across the asset-management world, interest in Environmental, Social, and Governance (ESG) performance has soared since the launch of the UNPRI (Principles for Responsible Investments) in 2006. As a result, integrating ESG factors into investment decisions and portfolio management strategies is increasingly becoming the norm, and investors are seeking to better understand a company’s long-term value by looking at ESG information.
Here are some of the reasons why investors are seeking Social Performance Software to manage ESG portfolio data:
Long-Term Performance Monitoring:
Purpose-built software platforms like Insite collect, track and analyse social performance data and material KPIs on an ongoing basis. This performance monitoring is vital for understanding risks and opportunities long-term. Investors need access to current and correct data for both now and in the future to build a sustainable long-term investment strategy. A time-stamped data set is not enough. Insite enables performance data to be assessed continuously, rather than only isolated moments in time. This supports nano-data accuracy. The insights derived serves as commencement points to improve social performance in the ESG portfolio, enabling companies to meet obligatory performance requirements.
Improved Transparency
Trust relationships are vital to the conduct of business. The key is transparency When an organisation openly shows that they have a well-rounded, sustainable business strategy, they are more likely to attract capital from investors and be included in different ESG indexes. Reporting software like INSITE enables the customisation of different templates, questionnaires, and data collection tools to collect the correct social performance data. Once collected, it benchmarks and scores social performance across various metrics and KPI’s. Improve your organisation’s data integrity using INSITE’s cutting edge Data-Matrix tool which enables you to easily determine the quality and completeness of your social performance data across various reporting categories.
Reduced Social Performance Risk
Social Performance reporting software minimises the risks of incorrect data by ensuring data collection is consistent across all report sections. Information can be benchmarked, assessed and scored against pre-defined criteria using automated analysis tools such as scorecards. Based on the risks presented by the data, actionable solutions can be set to mitigate the risk.
Insite reporting software allows you to reduce noisy data and derive valuable data insights with minimal fuss.
The rise in the adoption of Social Performance management software in contributing to chaos–free ESG data systems is undeniable. Organisations would serve themselves well by embracing software like Insite when data crunching, as improved data affects better overall investments and business management processes. Our cutting–edge software INSITE, helps you effectively manage your localization initiatives and compliance risks in human resources, skills development and procurement reporting data, using a variety of tools and dashboards to measure trends, progress against targets and Social Performance risks.
Facilitates communication and engagement with investments and investors
Portfolio company engagement in ESG performance can be a challenge for investors, and sometimes, there can be little to no communication lines between the two parties. There are considerable benefits to communication and engagement between asset managers and their portfolio companies.
A credible software solution like INSITE will enable communication between parties and facilitate direct online conversations around specific social performance issues. Beyond due diligence and receiving alerts for flagged problems, a software solution enables investors to identify and engage with portfolio companies and help them to improve areas of underperformance in your social impact commitments. This enables the building of more sustainable and collaborative relationships.
Saves time and resource
Many firms are still using spreadsheets and emails and, as data get more complex, these processes become cumbersome, time-consuming and prone to error. Manual processes are not only a security risk but are also prone to risk and error and are extremely onerous on time and resources. Using INSITE software, data collection, management, and reporting can be automated on a large scale, leaving more time for analysis and strategic input.
The automation of data collection and analysis through technology, such as Insite, enables business to have in-depth reporting, analysis and informed decision-making.
Social Performance Simplified with Insite
Insite is a flexible, cloud-based social performance management platform that enables users to streamline the collection and validation of social sustainability data. The result is reporting on social performance requirements that are as reliable as the reporting out of accounting systems.
