Companies in the Nordics can demonstrate their own sustainability and demand it from their entire network when comparable ESG data is available for each company. Enento Group is a Nordic pioneer in sustainability information, now providing sustainability information on all companies in Finland and Sweden.
In principle, honest business is also sustainable, but basic level of doing good is no longer enough.
” Responsibility requirements are growing all the time. Pioneering companies are already well under way, and it seems to me that the eyes of entrepreneurs are opening more generally. They are beginning to realise that action is needed, and they must be able to communicate their own sustainability. Of course, sustainability still is a possibility for differentiation,” says Riku Salminen, Development Director of Enento Group.
Enento Group is a pioneer providing data-based sustainability services. It helps its customers make sure that all their partners and customers also meet the requirements of responsibility. The ESG Report (service) launched by Enento Group in the Finnish market and available of all companies in 2017 was the first in the world. Now, through Enento, the report is also available of all Swedish companies.
” The data must be comprehensive and comparable so that it can be easily utilised. This also applies to ESG data describing sustainability. Listed companies and some large unlisted companies prepare extensive ESG reports on their operations. These are important for investors, but difficult to utilize in decision-making because it is not comparable. Banks and other financiers need exactly the same ESG information on all their corporate customers to be able to meet their own tightening obligations and automate their own credit decision processes.”
For example, EU taxonomy is increasing the pressure to produce, compile and utilise ESG data.
” Some banks have already set ambitious targets to even halve the carbon footprint of their credit portfolios. Therefore the customer companies are required to be responsible and report on it too. Responsible companies will have access to finance on better terms, while lower-performing companies may not have access at all. The same logic will soon apply to e.g. insurance, ”says Riku Salminen.
Enento collects sustainability data from several sources
Enento Group develops its sustainability services and constantly strives to expand the knowledge base. We collect information from authority registers, other service providers and now from the companies themselves too. Enento Group has just launched a free ESG service for all companies, which guides you to consider and report on different aspects of responsibility. This information will later be included in the ESG Report.
The ESG Reporting Service was launched by Enento Group in 2017, when it could be checked whether the company had criminal convictions or whether penalty or negligence fees or other authority entries had been registered to it. The newly renewed service includes information on e.g. companies’ eco-labels, information security and GDPR eligibility, the net impact profile, revisions under the Contractor Liability Act, and the industry’s energy accounting and environmental taxes. The company’s sustainability information can be used as a complete report or only the most important aspects for one’s own decision-making process can be checked.
” Our core competency is to assemble and model large amounts of data. Our analysts are constantly conducting research to learn how to understand and infer future developments from ESG data and to help our customers identify the risks of irresponsible business. For example, an environmental criminal conviction or a penalty payment increases a company’s financial risk and should therefore be considered in decision-making. Reputation damage can also be great if the partner or customer is irresponsible, ”Riku Salminen illustrates.