Starting January 2024, companies will be required to include standardized digital reports in their annual statements, detailing their material impact and risks throughout the value chain. The new reporting rules on corporate sustainability will apply to all large companies in the European Union and non-EU companies that have subsidiaries operating within the EU. The objective of this newly mandated directive is to enhance and expand the current regulatory obligations by implementing standardized disclosures of companies' environmental, social, and governance (ESG) impacts.
How can VOLUM3 help you improve your ESG rating?
Technology has become a key contributor to managing ESG, especially cloud-based software and tools, such as VOLUM3. This cloud collaborative platform gives the AEC community an opportunity to improve their rating for all three ESG pillars.
VOLUM3 is enabling architects and constructors to have a sustainable environmental impact while managing a project. Through its digitized platform users can share all documents electronically without the excessive use of paper. This saves the company money and time while being eco-conscious. Storing and sharing documents digitally is more energy-efficient than maintaining physical files or operating on-premise servers. VOLUM3 utilizes energy-efficient data centers and optimizes resource usage with data-driven decision-making. Its online Product catalog provides comprehensive data about the materials and equipment so investors and architects can choose recyclable products, waste reducing and with lower emissions. This transparency is crucial for ESG reporting, as it provides stakeholders with a clear view of the company's sustainability initiatives and progress. Selecting such materials can contribute to earning green building credentials, which influence buildings’ sustainability and developers’ ESG reports. VOLUM3’s online catalog offers products that contribute to a lower carbon footprint and the overall reduction of CO2 emissions in the construction process.
As a cloud collaboration platform, VOLUM3 enables virtual meetings and remote collaboration, reducing the need for frequent travel. By cutting down on travel-related carbon emissions, the company demonstrates its efforts to minimize its environmental impact.
Providing centralized data information (CDI), VOLUM3 helps companies improve their task management and communication. With carefully designed Tasks and Meetings modules users can track their work and communicate in real-time from anywhere, making remote collaboration possible. This allows employees from diverse backgrounds and geographic areas to participate in projects. The company can showcase its commitment to building a diverse workforce and promoting equal opportunities in its ESG report. By reducing the need for on-site document handling, architectural and construction companies can enhance worker safety and minimize the risk of accidents related to physical file management. This also leads to faster project completion and better decision-making.
Centralized location, for storing and sharing documents, helps architectural and construction companies to comply with regulations. It makes the entire project process more efficient and inclusive, bettering their ESG performance. Every member of the project team knows exactly which task they are assigned to and its deadline. Companies are also able to collaborate with stakeholders on ESG reporting. Cloud platform ensures that all stakeholders have access to the same information making the process transparent.
With CDI, VOLUM3 has significantly improved its data security and compliance. Sensitive data is protected from unauthorized access with robust security measures and compliance is ensured with data protection regulations. This enhances company's governance and risk management practices. Version control and audit trail features are of high importance for VOLUM3 since everything is shared electronically. Companies are able to maintain accurate records and track changes in documents, which is valuable for compliance and regulatory purposes.
Why should you embrace ESG values?
Adopting an ESG framework has great benefits, it can improve your business reputation as it indicates you have a transparent plan that focuses on helping the environment, supporting diversity and equal opportunities, and ensuring ethical business decisions. Carrying about what material is being used, how it's packed, transported, and implemented reduces waste and lowers energy and financial cost. It also affects what kind of customers you are working with. Research by McKinsey found that over 70% of people said they would pay an additional 5% for a green product if it met the same standards as a non-green alternative. It affects your whole business, from the employees who choose to work for you to the customers who work with you, and your overall brand image.