IBM Envizi ESG Suite

What is ESG?

“Environmental, Social and Governance” refers to three central factors used to measure a business's sustainability and impact on the community.

• “E” - Environment: refers to managing a business's impact on the natural environment, including reducing emissions, managing water and energy, protecting biodiversity and treating waste.
• “S” - Society: refers to how a business manages its impact on society, including aspects such as human resource management, fair labor relations, occupational safety and health, ethics business ethics and interaction with local communities.
• “G” - Governance: refers to the enterprise managing and operating the company in a responsible and transparent manner, including building effective governance mechanisms, managing risks, ensuring compliance comply with laws and ethical standards, and create reporting and monitoring mechanisms.

Why should enterprise invest in ESG?

Investors use these non-financial factors to screen potential investments and evaluate their material risks and growth opportunities.

• High ESG scores = More Sustainable → Lower Risk, Lower costs of capital, focused on long-term value creation
• Low ESG scores = Less Sustainable → Higher Risk

Companies that fail to take ESG into account are at risk of experiencing a significant financial impact. Research shows that better ESG scores translates to about a 10% lower cost of capital, and correlates to lower regulatory, environmental, and litigation risks. The reason that ESG investments are viewed so positively is due to how well they align with long-term thinking, and potential risk reduction; companies who have good ESG management tend to be better equipped for sudden crises due to this emphasis on sustainability. Thus, when looking for long-term value, ESG investments offer the opportunity for investment that can manage risk and create opportunities, whilst also contributing towards a more sustainable future.

Envizi

IBM Envizi ESG Suite is SaaS that consolidates enterprise ESG data for analysis and reporting. Envizi simplify the capture, consolidation, management, analysis and reporting of your environmental, social and governance (ESG) data.

• Build a data foundation and integrated system of record that delivers auditable, finance-grade ESG and sustainability data
• Streamline reporting to meet internal and external ESG and sustainability reporting requirements
• Integrate internal and external stakeholders, process and technology to embed sustainability into daily operations
• Accelerate decarbonization by unlocking insights to inform the fastest and most cost-effective pathway of decarbonization

Key features

• Automatic data capture: From ERP and finance systems, property management databases, supplier data files and other business platforms.
• Connectivity to operational system: Integrated with IBM Maximo, IBM Tririga and IBM Turbonomic to provide a comprehensive view of sustainability performance and opportunities.
• Data normalization and harmonization: Multi-metric, multi-currency cost and consumption data converted into comparable units and time periods.
• Data structuring and hierarchy management: Advanced data tagging for retrieval, extraction, analysis and reporting to multiple ESG frameworks with one data source.
• Data audits and health checks: All data traced back to source files with an audit record of changes made and data quality represented graphically on HealthCheck dashboards.

Modules

Key benefits

• Full featured: Consolidated data to streamline ESG reporting and identify efficiency opportunities.
• Streamlined: Automatically collect 500+ data types from sources including energy retailers, sensors and more.
• Time saving: Collect data once, report multiple times with automated data collection and calculations.
• Audit ready: Report confidently knowing your ESG data has been captured in a single system of record with audit trails.
• Silo busting: Engage all stakeholders with user-friendly tools delivering visualizations and customizable dashboards.
• Cost effective: Realize cost-saving efficiencies in the process of reducing waste, energy consumption and emissions.

Sources

1. Sustainable and ESG L1 – Seller Presentation (IBM)
2. IBM Envizi ESG Software Suite (IBM)
3. New York Times: A Friedman doctrine https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html
4. New York Times: A Friedman doctrine https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html
5. Bloomberg: How BlackRock made ESG the hottest ticket on Wall Street https://www.bloomberg.com/news/articles/2021-12-31/how-blackrock-s-invisible-hand-helped-make-esg-a-hot-ticket
6. Sustainable investing at BlackRock https://www.blackrock.com/ch/individual/en/themes/sustainable-investing

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