How to Manage Sustainability Data

LEVERAGE TECHNOLOGY, BUT LIMIT OVERRELIANCE STEP 04: TECHNOLOGY

UNDERSTANDING THE ROLE OF DATA MANAGEMENT CONSULTANTS. Many organizations accept the challenge of maturing their data processes internally; however, if you don’t have the expertise or capacity, a data management consultant can be critical. They will guide you through establishing organizational boundaries, understanding the reporting frameworks, and managing the data collection and quality assurance processes. They can also help you understand the pros and cons of different technology solutions. A data management consultant is like a guide. If you know the way, you may not need them. But if this is your first time climbing the data management mountain, a guide will help you reach the top quickly and safely.

WHAT TO THINK ABOUT WHEN CHOOSING THE RIGHT SOLUTION

If you have the right processes, approach to people and governance, then you’ve reached a logical point to choose the technology tools and platforms that will help keep you on track. It’s helpful to think about the technology in two distinct categories. The first category is software or hardware tools that help you automate data collection, and the second category is platforms that store and manage your data and power reporting outputs. When it comes to platforms, it’s crucial to remember that having custom-built software doesn’t guarantee effective data management. In fact, it can create a false sense of security unless you have appropriate processes around the data flowing into the software. The old adage of “garbage in, garbage out” is true, but you may not even have “garbage” to begin with – in other words, don’t neglect to focus on how you obtain data in streamlined and repeatable ways. All it takes is for organizational boundaries to be slightly incorrect or outdated, or for an extra zero to creep into a data input, to create significant issues. Similarly, it’s crucial to document clear methodologies for auditors, such as the basis of greenhouse gas emissions calculations. While software can streamline the process, auditors need to understand how conclusions were reached, not just the final numbers. Ensuring all data and basis of-preparation documents are readily available will make the assurance process smoother and more efficient.

It may be tempting to leap straight into selecting software that looks like a ‘shiny race car’. However, it will be of little use if you don’t know which race you’re in or what “fuel” you need. Selecting the best platform relies on several considerations. The first is thinking upfront about the problems you’re trying to solve, the reporting frameworks you must navigate and your data sources. Then, ask if you are doing this to unlock operational improvements, report to regulators, or achieve goals. Having clear problem statements in mind can help you select the right software tools. You may also want to deep-dive into energy analytics and decarbonisation pathways or better manage energy to reduce OPEX alongside compliant reporting. These goals should influence your selection criteria. Another is thinking about your data owners and software users. If it’s a highly technical tool better suited to sustainability managers, it may not be the right fit for property or asset managers and vice versa.