Author: Sarah Shannon

Navigating the Complexities of ESG and Anti-Greenwashing Regulation  

By Sarah Shannon

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Key Takeaways from FinTech Scotland’s ESG Innovation Kick-Off Day 

Members of the Pulse team ventured to Glasgow on a sunny day in late July to attend FinTech Scotland’s ESG Innovation Kick off Day. We were thrilled to be selected by FinTech Scotland to be part of the ESG challenge day.  Better still we were part of something that felt genuinely real and focused on the possibility of making the world a better place to live in through the power of tech. Read on to explore the challenges and discover the opportunities learned on the day.

man speaking at lectern in front of men at desks
Pulse Market CEO Michael O’Shea

The room was packed with representatives from 23 FinTech Startups sharing innovative ideas with leading Financial Services partners from EY, Barclays, Virgin Money, Abrd, Morgan Stanley, Equifax and Phoenix. Further supported by academics from University of Glasgow and University of Strathyclyde. Sitting in the middle of the room waiting to pitch the Pulse Market team absorbed the knowledge shared and the passion for collaboration to make the world a better place to live.   

It became apparent early on in the day the landscape of corporate sustainability is evolving rapidly, driven by sustainability regulations such as the Anti-Greenwashing regulation that came into force in May 2024. The Anti-Greenwashing regulation places companies under increased scrutiny, necessitating a thorough overhaul of how data is managed and reported. So what can we learn and how can we take positive action?

Here are the key insights and best practices gathered from FinTech Scotland’s ESG Innovation Kick-Off Day on this pressing topic. 

The New Era of Regulatory Scrutiny 

With the introduction of the Anti-Greenwashing regulation, companies are now under the microscope to ensure the accuracy and transparency of their sustainability data. This increased scrutiny mandates a broader and deeper focus across multiple regulatory points. This is emphasising the importance of aligning corporate structures to meet these evolving demands. Companies must now scope out and capture comprehensive regulatory points, inventory across legal entities, and adapt to this expanding regulatory landscape. 

Risk and Control Frameworks: Navigating Complexity 

One of the major challenges discussed was the complexity of risk and control frameworks. These frameworks often overlap and have subtle differences, creating a complicated landscape for data management.  

The lack of standardisation further complicates the aggregation and consolidation of data across various corporate divisions and external sources. To address this, there is a growing need for technology solutions that can replace traditional tools like Excel spreadsheets and SharePoint, facilitating more efficient data management. 

Corporate Structure and Sustainability 

Understanding, aligning and managing corporate structure with methodologies and best practice is crucial, given the complexity arising from various types of entities and jurisdictions.  

The need for robust and transparent data is paramount, as companies live in fear of inaccuracies. This challenge is compounded by the sheer volume of data that needs to be managed, especially from customers and value chains. Methodologies and best practices are essential to navigate these complexities effectively. 

Disparate Data Sets in Financial Services 

Financial services face unique challenges with disparate data sets, demanding the evolution of protocols to aggregate and identify key data points. Scope 3 emissions, in particular, pose a significant challenge due to the variability in disclosed data and estimates. Unlike Scope 1 and Scope 2 emissions, which can be benchmarked and are generally more trustworthy, Scope 3 emissions require more nuanced management. 

Empowering Corporate Responsibility Through Data 

The speakers on the day highlighted the importance of having identified, verified, and standardised data to drive corporate responsibility.  

Digital sustainability was another critical topic, focusing on whether it is more cost-effective to migrate to new platforms or integrate with existing systems. Key tools identified include KPIs, visual monitoring tools, and data-driven solutions that can predict critical goals and decision-making paths. 

Regulatory and Market Impact 

Scope 3 emissions and regulatory changes are key drivers for the need for sustainable, timely, and relevant data. Ensuring traceability of data sources and being aware of horizon risks are crucial for effective ESG data management. Engagement with supply chains and alignment with CSRD-matrix data points were also emphasised as necessary steps for robust ESG data across value chains. 

Challenges and Opportunities 

The concept of double materiality was discussed as a significant challenge, particularly in balancing long-term reporting with long-term value creation. Transitioning from mere compliance to a strategic approach involves measuring ESG impacts, developing strategies, and overcoming the unique challenges faced by SMEs, such as skills gaps and disparate requests for data. 

Future Directions in ESG Data Management 

Enhanced decision-making through advanced information acquisition and climate science is essential. With reporting currently optional for many companies, there is a significant opportunity to get ahead of the curve before it becomes mandatory. Addressing resource constraints and finding efficient ways to transfer and model data are critical for compliance and operational efficiency. 

Centralising ESG Workflows 

Finally, centralising ESG workflows and putting data to use effectively were identified as crucial steps for the future. By streamlining data collection, analytics, and reporting processes, companies can enhance transparency and reduce the burden of data management. 

Conclusion 

FinTech Scotland’s ESG Innovation Kick-Off Day underscored that the evolving regulatory landscape presents both challenges and opportunities for companies. By embracing technology, improving data transparency, and aligning corporate structures with regulatory requirements, businesses can navigate these complexities effectively. The key takeaway is clear: regulation is an opportunity for positive change, and companies must be bold and proactive in their approach to ESG data management. 

Ready to streamline your ESG data management and stay ahead of regulations? Discover how our robust and secure sustainability platform can help you achieve transparency, automation, and proactive compliance. 

Talk to Pulse Market today and we can collect, manage and aggregate your ESG data for compliance and reporting  

Contact us here

 

Accelerating Sustainability with Digital Solutions 

By Sarah Shannon

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This decade is critical for addressing a century’s worth of pollution and environmental neglect. So how can we reverse the damage – fast? It’s now essential to embed sustainability practices into organisational strategies. The backbone of these practices is high-quality data that will ensure it is transparent, has integrity regulatory compliance, and buildes stakeholder trust. By integrating sustainability into digital transformation strategies, organisations can accelerate their transition to a sustainable economy. 

Digital Strategy Meets Sustainability 

For starters digital strategies and sustainability are increasingly intertwined. A robust digital platform, like Pulse, can centralise information, making it easily accessible for teams, stakeholders, and suppliers. This facilitates vital collaboration, a key component in driving sustainable practices that will successfully drive positive change for people and the planet. 

3 benefits of blending digital strategy with sustainability goals: 

1 Monitoring and Tracking Progress 

Digital solutions enable organisations to monitor and track their sustainability efforts effectively. They provide transparent audit trails, ensuring data reliability and trustworthiness. This transparency is critical for accurate reporting and compliance. 

2 Benchmarking and Supplier Profiling 

Using data to benchmark and profile suppliers helps identify risks and impacts across the value chain. This insight is vital for transitioning from a linear to a circular economy. High-quality information supports strategic goals and drives sustainability initiatives. 

3 Harnessing Data for Sustainability 

Centralising non-financial information on a digital platform reduces the carbon footprint by eliminating the need for scattered data storage.   

Responsible AI Deployment 

Automation, AI, and machine learning are revolutionising the way organisations approach sustainability. These technologies enable businesses to adapt and innovate, making sustainable practices more efficient and impactful. AI and machine learning can significantly improve accessibility, reduce waste, and optimise energy consumption in the production of goods and services. However, placing AI at the core of sustainability we need to be responisble too. Therefore, deploying AI responsibly is essential when dealing with sensitive non-financial information.   

Optimising Resource Use 

Digital technologies play a crucial role in advancing sustainability. They enable precise measurement and tracking of sustainability progress, optimise resource utilisation, and significantly reduce greenhouse gas emissions. By facilitating this transition, these technologies are pivotal in moving from a traditional linear economy to a more sustainable circular economy. 

Innovation and Collaboration 

Digital technologies drive both innovation and collaboration, creating new opportunities for tackling climate change. Tools like AI, copilots and machine learning, are at the forefront, developing the next wave of solutions for a sustainable future. 

Building a Transparent Supply Chain 

Visibility is essential for supply chain leaders. Without precise tracking, they risk over-ordering and tying up valuable working capital. Transparent data sharing with suppliers ensures accurate tracking from origin to delivery, mitigating risks and safeguarding the brand. 

Achieving Supply Chain Sustainability 

Reaching sustainability goals requires a global, accurate, real-time inventory view. Sharing data across the supply chain ecosystem builds trust and efficiency. AI helps avoid obsolete inventory, reduce carbon emissions, and minimise waste. 

Environmental Intelligence 

Sophisticated predictive tools are necessary for companies exposed to various external factors. Environmental intelligence helps organisations predict and respond to weather events, streamlining risk management and operational processes, including carbon accounting and reduction. 

We are already experiencing the impact of a rapidly evolving digital transformation – it can be scary sometimes. However, we do need to address the climate crisis urgently and when we use digital responsibly we can truly accelerate solutions. We are working with clients who are transforming how their organisation approach sustainability. They believe in embedding sustainability into digital transformation strategies, leveraging data, and fostering collaboration – these are the businesses that will accelerate a transition to a sustainable, circular economy.

Ready to collect, organise and visualise data on Pulse Market?

Book a Demo now

How to Influence Sustainability Conversations and Actions in Your Organisation? 

By Sarah Shannon

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Sustainability regulation is looming on the horizon for many big organisations. This impending legislation serves as a powerful motivator for change, compelling businesses to meet legal requirements and align with economic, political, social, and stakeholder expectations. However, beyond compliance, many organisations genuinely want to reduce their material impact and reverse environmental damage.

So, how do you change hearts and minds, get everyone on board, and drive action within your organisation? 

Involve Everyone in the Conversation 

The first step is to openly engage everyone in your organisation – share the goal that together we can shift to a sustainable organisation. Encourage a diverse range of people across all levels to join the conversation – especially those working on the frontline. Their varied perspectives and inputs are invaluable in understanding the complexities of reducing your business’s material impact. 

Understand the Resistance 

People tend to resist change as they focus on what they must give up rather than what they will gain. So a good place to start is by identifying the core reasons behind any resistance to change. For example, do they worry lower quality materials will replace current materials, will it cost more to be sustainable so another core offer is dropped, will it take longer at the expense of tried and tested efficiency. Understanding these blockers allows you to start improving processes and practices effectively while reviewing innovative alternatives too.  

Identify and Remove Blockers 

Once you know the blockers, you can then identify gaps and bottlenecks to provide ideas and practical solutions that help overcome the resistance. A simple first step is to focus on quick wins. This not only demonstrates progress but also signals your commitment to change. Talk to your employees and suppliers about alternative technologies and sustainable materials that could improve processes.

Remember to celebrate these wins to stimulate further conversations.  

Create a Supportive Culture 

Fear of failure can hinder progress. Foster a culture where trying new approaches is encouraged, even if they aren’t 100% perfect. Ring-fence a budget to support your sustainability strategy, showing that the organisation is serious about making a change. 

Ensure Leadership Commitment 

Ensure the senior team demonstrates a commitment to listening to the conversation and removing blockers. Their active participation can significantly accelerate the shift towards a sustainable future. 

Set Targets and Track Progress 

Every organisation can set its own sustainability targets and track progress. They key is to gather all non-financial information, such as policies and carbon emissions data, in one place to gain a comprehensive view. Going forward it is easy to visualise year-on-year progress and proudly share your successes. 

By incorporating these steps, you can effectively influence sustainability conversations and actions within your organisation, leading to meaningful environmental impact and a more sustainable business. 

Be proactive, not reactive.

Reach out to Pulse Market now and find out how to streamline your non-financial reporting and spearhead your sustainability initiatives.

Contact Pulse Today

Beyond Quick Fixes: The Real Deal with Sustainability Reporting

By Sarah Shannon

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Sustainability Reporting: Beyond a Quick Fix

Don’t let anyone tell you sustainability reporting is simple and easy to do. There is no quick fix and all the tools in the world won’t magically produce an accurate report for you. This statement may surprise you coming from a sustainability platform. However, through experience working with clients we know preparing for sustainability reporting requires comprehensive action across a company to ensure enduring success. So yes it is complex now but with real effort upfront to get stakeholder buy in and implement workflows you will streamline the process. Year on year it will get simpler and your company will:

  • Reduce Effort and Time Required
  • Ensures Comprehensive Compliance
  • Gain clear, Actionable steps

Read on to learn how upfront effort and ongoing communications with stakeholders can streamline the process, ensuring compliance with CSRD obligations and pave the way for enduring sustainability success.

CSRD Obligations

Under the Corporate Sustainability Reporting Directive (CSRD), companies must collect and report significant non-financial information covering Environmental, Social, and Governance (ESG) factors. This involves establishing robust data management workflows, identifying bottlenecks, and closing gaps to ensure accurate and comprehensive reporting. In turn this will help shape an effective corporate ESG strategy. Let’s talk about what is involved in year 1 to build solid foundations.

Upfront Effort in Year One

The initial year demands significant effort to lay a solid foundation. This groundwork supports the process for years to come, enabling smoother, more efficient reporting in the future. Transparent audit trails must be established from the outset, ensuring accountability and traceability. Remember you want to show progress year on year – so it’s ok to initially have gaps as long as you show progress and evidence you are continually improving your sustainability efforts – so the earlier you start the better.

Monitor Performance and Progress

Monitoring performance and progress is key to compliance. The CSRD is an annual, cyclic process designed to build upon previous years’ efforts, gradually improving and refining sustainability practices. Consistent board and staff training are essential to keep everyone up to date with the latest requirements and best practices.

Ongoing Dialogue

Maintaining a continuous company wide dialogue and open communications is crucial. Regular meetings, workshops, data requests, and staff training are necessary to keep everyone aligned and informed. This ongoing communication has the added benefit of fostering a culture of sustainability and compliance as everyone is pulling in the same direction.

Resources and Process

A successful sustainability reporting process requires coordination across the board, departments, and staff. Each entity must understand its role and contribution to the overall goal. Board members, in particular, should be fully committed and engaged as this will support the good work from the top down. This leads on nicely to knowledge and teamwork.

Knowledge and Teamwork

In-depth knowledge across multiple individuals and departments is necessary. Forming a CSRD project group with clear, actionable steps and company-wide objectives helps streamline the process. This team ensures that everyone understands their responsibilities and the importance of their contributions.

Disclosure and Scrutiny

The final sustainability report is public and subject to mandatory audit. Organizations should expect to be challenged on their performance, identified gaps, and the narrative presented. Preparing for this scrutiny involves ensuring that all reported data is accurate, complete, and verifiable.

In conclusion, while sustainability reporting is not a simple fix, with significant upfront effort and ongoing commitment, it can become a smoother and more efficient process. Immediate action and continuous improvement are key to enduring success in sustainability reporting.

Strategic Support: Enhancing Business Resilience under CSRD 

By Sarah Shannon

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Accountants know that staying ahead of trends is crucial for business success. While trends typically come and go, influencing strategies and operations in cycles, sustainability is proving to be far more than just a fleeting focus. Unlike other passing business fads, sustainability has solidified its position at the core of corporate strategies, driven not only by the climate crisis and consumer demand but also regulatory mandates – particularly CSRD – coming into force. 

Background and Evolution of CSRD 

Within the European Union, the CSRD was first proposed in 2021 as an update and expansion of the Non-Financial Reporting Directive (NFRD). The CSRD took effect in January 2023, introducing more rigorous demands for transparency and accountability in reporting sustainability issues. The new legislation mandates that companies adhere to the European Sustainability Reporting Standards (ESRS), which consist of 12 standards adopted by the European Commission in July 2023. These standards are designed to ensure that sustainability reporting aligns with the depth and rigor traditionally reserved for financial reporting. 

This regulation makes it clear: sustainability is no longer optional! 

It’s a critical element that around 50,000 companies throughout the EU must integrate sustainability reporting into their operations. These businesses are required to approach non financial information reporting with the same rigour as financial reporting.  

What are companies expected to report on 

Under the CSRD rules, reporting entities are required to report on non-financial qualitative and quantitative information related to: 

  • Diversity of company boards 
  • Double materiality 
  • ESG targets and progress in reaching them 
  • Greenhouse gas emissions and targets 
  • Human rights issues 
  • Social responsibility and employee treatment 
  • Sustainability goals, performance and policies 

The knock-on effect of CSRD

Not only are large companies directly affected by these regulations, but their supply chains are also impacted. Larger organisations will now expect their suppliers to demonstrate and account for their sustainability efforts, extending the reach and implications of these standards throughout the entire supply chain. 

The Importance of Early Preparation 

Just like a house needs a solid foundation to stand strong, a business needs a robust base to grow and thrive as sustainability becomes increasingly central to operations. To report effectively, it’s important for businesses to start preparing now. As legislation evolves and becomes more demanding, companies will need to share more detailed non-financial information. Establishing a solid foundation today will help ensure that a business can meet these increasingly more stringent requirements in the future. 

Experts in the accounting profession foresee increasing regulation on data disclosure, information, and metrics around environmental, social, and governance (ESG) matters. Now is the best time for accounting and finance professionals to embed sustainability metrics into an organisation’s business model. 

Data Management: A Critical Component 

Effective data management under CSRD cannot be overstated. Relying on ad-hoc processes, clunky spreadsheets, shared drives or individual knowledge not only poses a risk to compliance but to the integrity and continuity of your business operations. Instead, collecting, organising and securely storing sustainability data in one single source of truth ensures that a company can respond quickly to regulatory requests and manage information efficiently. 

Visualise and Showcase Progress 

Visualising all sustainability data in one place not only simplifies compliance but also showcases a company’s progress. It enables effective decision-making and highlights ongoing improvements in sustainability actions. This centralisation ensures that no effort is duplicated and that every stride towards sustainability is documented and accessible. 

Operational Strategy for Compliance 

Preparing for CSRD involves 3 elements: 

1. Data Collection: Establish robust systems to continuously collect detailed, accurate non-financial data. 

2. Analysis and Reporting: Implement tools and processes that allow for effective analysis and transparent reporting of sustainability efforts. 

3. Supplier Collaboration: Extend data practices to the supply chain, ensuring that suppliers can provide the necessary non-financial data to align with sustainability reporting requirements. 

In conclusion, the role of accounting professionals is more crucial than ever under the CSRD. By proactively collecting, managing and analysing sustainability data, a company will not only comply with evolving regulations but also position a business as a leader in sustainable practices. Put simply, start early, organise diligently, and embrace the CSRD with confidence. 

At Pulse Market we are working with accountants, CFOs and supporting organisations prepare for CSRD with our sustainability consultancy services and our sustainability platform for collecting, organising and visualising non-financial information.

Contact us today

From Financials to Sustainability Reporting

By Sarah Shannon

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In the business world, understanding the health and performance of your company has traditionally relied heavily on financial data. For years, financial reports have been the cornerstone, providing insights into revenue, expenses, profits, and more. However, as the climate crisis escalates businesses face increasing pressure to operate sustainably so a new form of reporting is emerging—one that goes beyond the balance sheet to assess the environmental and social impact of operations.

The Rise of Sustainability Reporting

Historically, businesses diligently produced financial reports to comply with regulations like those set by HM Revenue & Customs (HMRC). These reports were crucial for tax purposes, providing transparency and accountability to stakeholders. However, as concerns about climate change, scarce resources, and social inequality mount, there’s a growing recognition that traditional financial reporting is not enough to capture the full picture of a company’s performance.

Expanding scope of sustainability reporting

Enter sustainability reporting which is gaining momentum and becoming increasingly more relevant for businesses all around the world. With the introduction of regulations like the Streamlined Energy and Carbon Reporting (SECR) and the Corporate Sustainability Reporting Directive (CSRD), sustainability reporting is being elevated to an equal footing with financial reporting.

Streamlined Energy and Carbon Reporting (SECR)

In 2019 SECR, was introduced in the UK. It requires large companies that fit strict criteria to report on their energy use, greenhouse gas emissions, and energy efficiency measures in their annual reports (again what they report is determined by certain criteria?. This regulation aims to increase transparency around energy and carbon emissions and encourage companies to reduce their environmental impact. Read more details on criteria at GOV.UK

Corporate Sustainability Reporting Directive (CSRD)

Similarly, CSRD, a proposed European Union directive, seeks to expand the scope of sustainability reporting requirements for companies. It mandates certain companies to disclose information on environmental, social, and governance (ESG) matters in their annual reports. Different companies will be obliged to comply with the requirements for the first time in various fiscal years, depending on specific criteria. Read more on the EU CSRD page

What should be included in reports?

Under the CSRD rules, reporting entities will be required to report qualitative and quantitative information related to:

  • Diversity of company boards 
  • Double materiality 
  • ESG targets and progress in reaching them 
  • Greenhouse gas emissions and targets 
  • Human rights issues 
  • Social responsibility and employee treatment 
  • Sustainability goals, performance and policies 

These regulatory developments signal a significant shift in how businesses are expected to operate and communicate their performance to stakeholders. No longer can sustainability be treated as a mere side issue or optional reporting. It is now recognised as a fundamental aspect of business strategy and risk management.

Integrating Sustainability for Deeper Insights

By integrating sustainability reporting into their practices, businesses can gain a deeper understanding of their impact on the environment and society. They can identify risks and opportunities, improve resource efficiency, enhance brand reputation, and build trust with customers, investors, and other stakeholders.

Even better, sustainability reporting can drive innovation and foster a culture of continuous improvement within organisations. By collecting, managing and monitoring data sets a business can identify trends, make data driven decisions, drive sustainability initiatives and communicate ESG efforts to stakeholders. Also help set realistic targets and enable business to reflect and track progress. By publicly disclosing their performance, companies can hold themselves accountable and strive for positive change.

Paving the Way for a Sustainable Future

In conclusion, the evolution from financial reporting to sustainability reporting represents a fundamental shift in how we measure the health and success of businesses. As regulations like SECR and CSRD come into force, businesses have a unique opportunity to embrace sustainability as a core value and contribute to a sustainable future. By unlocking the true health of their business through comprehensive reporting, companies can pave the way for a more sustainable and prosperous future for all.

Are you ready for sustainability regulation? Let us help you gather data and confidently report your sustainability achievements?

Got a question? Get in touch by email or jump start the process of getting to know us and book a demo now

Guide Your Clients to Sustainability Success

By Sarah Shannon

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Most companies know they need to start reporting on their environmental, social, and governance (ESG) actions. But, many of them haven’t even begun to set goals. Why? They simply don’t know where to begin. This is where sustainability consultants, like you come in. You are not just advisers; you are the key to unlocking sustainability data hidden in their company and in their supply chains. The first step to a successful sustainability journey begins by hiring consultants with the expertise to make sense of the data and develop an ESG strategy aligned to each unique company.

Going beyond Excel to master sustainability insights

What’s holding them back? Right now, too many companies still use clunky Excel spreadsheets to manage their data, which can be unwieldy. Imagine having a tool that makes collecting and managing data easier and secure. This tool wouldn’t just collect data; it would help consultants and your clients understand data hidden in the company and suppliers.

With Pulse market you have a robust platform that enables you to ask the right due diligence questions, sort their answers, and turn all that info into easy-to-understand reports.

Ready for the solution?

Our platform is increasingly becoming the secret tool for consultants working with clients to deliver a CSR strategy and setting sustainability goals. Not only are they collecting the right data from the company and their supply chain they are able to save days interpreting the data.

Companies can effortlessly gather supplier data, keep everything in one place, and clearly visualise the data on our customisable dashboards. Above all they can trust the data is safe and secure, aligning with security standards like ISO 27001. This is a big step up from spreading sensitive data across excel spreadsheets and laptops.

So, for companies looking at ESG reporting and feeling stuck, there’s a clear way forward. With the right guidance from consultants and using the right tools like Pulse Market, delivering ESG goals and sustainability reporting becomes much more straightforward.

Why sustainability consultants are choosing Pulse Market?

  1. Streamlined Advice: Consultants can easily guide clients through the ESG reporting process, thanks to straightforward features and tools on Pulse.
  2. Effortless Data Gathering: collecting essential sustainability and ESG information from suppliers is simplified – saving consultants valuable time.
  3. Effective Supplier Engagement: consultants can design and send questionnaires with the relevant questions to gather richer data from suppliers on behalf of their clients.
  4. Easy Information Organisation: Efficiently organising and storing supplier responses and company info – such as certifications and policies – helps consultants easily manage and accurately analyse client data.
  5. Quick Report Generation: Automatic report creation allows consultants to deliver insights to clients faster, without manual work arounds.
  6. Clear Data Visualisation: Dashboards provide consultants with an easy way to visualise and understand data.
  7. Enhanced Data Security: Secure data storage means consultants can assure clients their information and suppliers is safe – building trust.
  8. Compliance Confidence: Using a tool aligned with ISO 27001 security standards, consultants can ensure they’re meeting regulatory requirements.
  9. Convenient Access: Centralised data storage allows consultants to easily retrieve all necessary information, improving efficiency.
  10. Time-saving Efficiency: Overall, Pulse Market makes the whole supplier and ESG data management process quicker and more efficient, letting consultants focus on helping clients achieve ESG and sustainability goals.

Bonus Benefit – Access Pulse Market clients looking for expert sustainability guidance!

Ready to make ESG and sustainability data collection easier and have more time advising your clients?

Contact Michael O’Shea on info@pulsemarket.com

How to Choose Suppliers That Share Your Sustainability Vision

By Sarah Shannon

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Making your supply chain more sustainable is a smart move. It’s better for the planet and can boost your business too. Here’s 7 points to consider when shifting to a more sustainable supply chain: 

Step 1: Check Your Supply Chain 

  • Look at What You Do: Start by checking how your supply chain works. See where you might be wasting resources or harming the environment. 
  • Talk to People: Ask your suppliers, customers, and team what they think can be better. They may already be working on initiatives that will help your organisation reduce your impact on the planet. Find out if there are ways to ask the relevant ESG questions during the procurement process.  

Step 2: Make Clear Goals 

  • Decide on Your Company Goals: After checking your supply chain, decide on some clear goals to make it more sustainable – communicate these back to your suppliers so they are on the same page as you. 
  • Plan Your Steps: Plan how to reach these goals. Identify if you have the right resources (skilled/knowledgeable team and time). Decide who does what and when – or do you need to outsource to get the right skills.  

Step 3: Choose Suppliers aligned with your goals 

  • Pick Sustainable Suppliers: Work with suppliers who care about the environment – not just greenwashing but genuinely are making strides to be better for the planet and people. Don’t just check their about us page – ask to see their policies and ISO credentials. For example check the company procedures for handling hazardous labour conditions or disposal of waste. 
  • Work Together: Help your suppliers get better at being sustainable too. Don’t just focus on the top tier of suppliers – the biggest risks can be further down the supply chain. Lower tier suppliers without sustainability knowledge and resources can increase companies’ exposure to financial, social and environmental risks.  Are you putting extra pressure on the supplier to meet deadlines, lower prices so they are forced to cut corners? Talk to them – look at new deadlines and quantities to avoid exceeding labour hours or using cheaper more wasteful products to meet tight deadlines.  

Step 4: Use Less and Waste Less 

  • Cut Down on Emissions: Try to lower pollution from transporting goods. Use fewer polluting ways to move products around. Can you buy locally? 
  • Reduce Waste: Find ways to use less plastic, like packaging. Try to reuse and recycle more or source alternative biodegradable packaging. 

Step 5: Keep Track and Share 

  • Watch Your Progress: Set KPIs to track how well you are doing with your sustainable goals.  
  • Be Open: Tell your customers and team about your efforts. Share your successes and challenges. 

Step 6: Build a Sustainability Team 

  • Involve Everyone: Make sure everyone in your company knows about your sustainability goals and how they can help. You can share this in team and public digital channels – open an employee forum to engage passionate sustainability champions from across the business who will spread the word.  
  • Keep Getting Better: Always look for new ways to be more sustainable. Encourage new ideas. More people and workers want businesses to be more sustainable, plus regulations are changing to drive this too. So new eco-friendly choices are coming out, and the ones we already have are getting cheaper. This makes it easier for businesses to use sustainable solutions without overspending and impacting the bottom line. 

Step 7: Use Smart Tech 

  • Try New Things: Use technology that can make your supply chain more efficient and less harmful to the environment. Pulse Market is making it easy to engage the supply chain, collect data and policies so you can validate claims while categorising and identifying your more responsible suppliers (and less responsible) 
  • Think Outside the Box: Let your sustainable goals inspire new products or services. 

Making your supply chain more sustainable is an iterative process that involves careful planning and commitment from both your organisation and your suppliers. By engaging your suppliers in a meaningful and measurable way it will benefit not just the environment, but also your business’s bottom line. The key is to gather the right data to get meaningful insights that lead to actionable steps. Every effort counts!  

Talk to the Pulse Market team and learn how you can engage your suppliers on our platform.  

Strategies for Overcoming Responsible Sourcing Challenges

By Sarah Shannon

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As a responsible sourcing specialist, your role is pivotal, but it’s no secret that it comes with its fair share of challenges. Not only are you tasked with championing sustainability while also ensuring your organisation still gets value for money while also maintaining quality and compliance and above all being good for the planet.  In this blog post, we’ll delve into the common challenges faced by responsible sourcing specialists and explore strategies to overcome them effectively. 

1. Risk Mitigation 

Challenge: Managing supply, market, and compliance risks can feel like walking a tightrope. Supply chain disruptions, market fluctuations, and compliance issues are ever-looming threats. 

Strategy: Conduct thorough risk assessments regularly. Diversify your supplier base to spread risk. Develop contingency plans to tackle potential disruptions. Stay informed about market trends and regulatory changes to proactively address risks. 

2. Lack of Transparency 

Challenge: Maintaining visibility and control over the responsible sourcing process, especially in large organisations, can be daunting. Lack of transparency makes it difficult to track purchases, monitor supplier performance, collect data and audit ESG credentials and ensure compliance with organisations procurement policies. 

Strategy: Embrace dedicated Saas Solutions developed with sustainability and ESG at the forefront. Instead of adopting outdated tech that is attempting to retrofit the needs of responsible sourcing. New technologies provide real-time insights and improve transparency in line with new regulatory requirements too. One tip shared in a recent roundtable we hosted was to regularly review and refine your responsible sourcing processes to identify areas where transparency can be enhanced. 

3. Supplier Management  

Challenge: Identifying the right suppliers and ensuring they consistently deliver quality products and services that are sourcing widgets and treating employees responsibly can be a complex task. Supplier performance tracking is crucial but can be time-consuming without the right tools. 

Strategy: Invest in robust and secure supplier relationship management (SRM) strategies. Build strong relationships with key suppliers. Develop clear performance metrics and monitor them diligently. Consider supplier development programs to help your suppliers meet your expectations. This can be achieved when you have collected the right data to assess risk and understand impact of working with your suppliers.  

4. Internal Communication 

Challenge: Effective collaboration with various departments within your organisation, such as finance, operations, and legal, is essential. ENgage them early on and share the company’s sustainability goals and embed it in the corporate thinking. Miscommunication, lack of consistency or lack of alignment can lead to misunderstanding or a laxed approach to responsible sourcing.  

Strategy: Establish regular cross-functional meetings to align sustainability goals and objectives. Create clear communication channels to ensure information flows seamlessly between departments. Foster a culture of collaboration and open communication – share success stories. 

5. Technology Adoption 

Challenge: Some organisations may be resistant to adopting responsible solutions and its human nature to resist change and find it easier to rely on tried and tested processes like using clunky excel spreadsheets and email trails. Embracing technology can significantly improve efficiency and reduce manual errors. 

Strategy: Embracing new technology designed around responsible sourcing can significantly improve efficiency, reduce manual errors and accelerate sustainability data collection and help a company understand their suppliers’ sustainability activity.  

Adoption of responsible sourcing and procurement SaaS solutions speed up processes with automation, improve data analytics, and cost savings.   

6. Cost Management 

Challenge: Controlling costs while maintaining quality is an ongoing concern in procurement but even more so for the more specialist responsible sourcing experts. Price fluctuations, market dynamics, and unexpected expenses can impact on your budget. 

Strategy: Develop comprehensive cost-saving strategies. Negotiate favorable contracts and explore opportunities for bulk purchasing or supplier consolidation is a given. The tough part is assessing the risk and impact of suppliers on your company’s sustainability reporting.   

7. Compliance and Regulations 

Challenge: Staying compliant with various local and international regulations, especially the new sustainability regulations, can be complex. Navigating environmental standards, and industry-specific requirements requires verifiable data and analysis. 

Strategy: Upskill your team. Stay updated on relevant regulations through a corporate commitment to continuous education and training. Ensure your sourcing practices align with legal requirements. Work  with your legal and compliance teams to navigate regulatory challenges effectively. 

8. Supplier Diversity 

Challenge: Many organisations prioritise seeking supplier responsibilty to embed their corporate social responsibility initiatives. However, identifying and engaging with long list of suppliers can be challenging. 

Strategy: Create and champion supplier responsibility programs within your organisation and promote on public channels to ensure you attract suppliers with similar values. Actively seek out and partner with responsible suppliers to meet your organisation’s CSR goals. Promote the value of diversity and inclusion in your HR and procurement processes. 

Ultimately, as responsible sourcing specialists, you play a vital role in the success of your organisation. To conquer the challenges you face, invest in regulatory training and technology, foster transparent communication –both internally and externally, and develop robust responsible supplier management strategies. By addressing these challenges strategically, you not only ensure efficient procurement and reach responsible sourcing goals but also contribute significantly to your organisation’s growth and bottom line.  

Keep innovating, stay agile, and continue to strive for the best responsible sourcing practice in your critical role supporting people and then planet.

Ready to accelerate your responsible sourcing? Explore our platform by booking a short demo today.