Many businesses delegate the development of environmental, social, and governance (ESG) reports to a corporate sustainability officer or someone with a similar title. However, as ESG standards and guidelines become more stringent, there is a growing need for chief information officers (CIOs) to play a larger role in ESG activities.
Indeed, Gartner recommends that CIOs get ahead of the game by cultivating relationships with their colleagues in the field of sustainability. ESG strategies can reduce operating profits by up to 60%. Organizations must now make ESG commitments as a matter of course. Following through on commitments, whether they are carbon-neutral commitments, reevaluating supplier sustainability criteria, or implementing diversity, equality, and inclusion (DEI) efforts, among other things.
According to a PwC Consumer Intelligence Series study from 2021, more than three quarters of customers and companies are much more likely to buy from and/or work for a company that stands up for ESG issues, and 76 percent of consumers would stop doing business with a company that treats its employees, societies, and the environment poorly.
The ability of the CIO to provide clear, data-driven insights and track progress toward ESG goals is critical to the success of any ESG strategy. CIOs are increasingly in a position to set the tone for their organizations by instituting an ESG strategy and incorporating sustainability into their own digitalization efforts. However, given the breadth of these projects, many leaders are at a loss for where to begin.