The Role of JD Edwards in ESG

With organizations being held to higher standards, the importance of measuring ESG within the organization is quickly increasing. The three pillars of ESG are Environmental, Social, and Governance, and they serve as measures that companies adopt to combat potentially adverse effects they have on the environment, social aspects, and governance factors, or to positively contribute to the issues that are concerned with these topics.

Environmental encompasses the sustainability efforts organizations put forward, whether it is climate change, energy consumption, or waste management. Social reflects how the organization treats its employees, including the presence of diversity, equity, and inclusion, and the relationship it has with the communities in which it operates. Governance refers to the internal practices that govern the organization to make sure it is adhering to company policies and industry standards.  

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In the past, it has been difficult for organizations to clearly accurately report on their ESG efforts, with many organizations having no way to collect or track this data across the organization. However, with the increasing importance of disclosing ESG efforts, JD Edwards EnterpriseOne has created a solution with a primary focus on the Environmental (E) part of ESG. Environmental has been given the most emphasis, as environmental risks have a direct impact on everyday business operations.

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“Gathering environmental data enables businesses to track emissions relative to predefined goals or limits, enabling them to identify potential cost-saving opportunities, reduce emissions, and enhance regulatory compliance. Keeping records of this data also aids organizations in meeting mandatory or voluntary global environmental reporting requirements.”

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Collecting environmental data across an organization can be quite cumbersome and time-consuming, however, the JD Edwards Sustainability Framework provides a standardized and optimized method of collecting and storing environmental information from various day-to-day activities by using JD Edwards applications. Data pertaining to the organization’s environmental impact is recorded in an Activity Ledger and provides transparency on these transactions in a standardized and streamlined manner, allowing organizations to easily report on their environmental impact and make positive changes in their sustainability efforts. With this data, organizations can tell their story while also making more sustainable decisions for the environment.  

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If you’re interested in learning more about the JD Edwards Sustainability Framework and how your organization can gain a competitive advantage through ESG reporting, you can find more information here.  

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