The Role of Data in Environmental, Social, and Governance Strategy

Abstract

The basic resource of an environmental, social, and governance (ESG) strategy is no longer capital, nor natural resource, but is data. Environment (natural or digital), society, and governance are rapidly changing due to the exponential increase of data. With data being ubiquitous and implicitus, the capability of managing it has become a critical factor. Data is represented in a variety of ways, is interpreted according to a specific context, and is subject to strict privacy restrictions. Data protection as well as data privacy issues are of major importance regarding the top ESG challenges that industries deal with. Supporting confidentiality and privacy toward the form ESG approach remains fundamental to refining a reasonable side regarding the progressively digitalized humanity we live in. Data breaches that have seen the light of day recently, such as those on Facebook, have highlighted the urgent need for data security as determined by ESG strategies. Businesses are called upon to better align with these strategies. They are called to link privacy with environmental, social, and governance strategies, which will be an ace for their viability and competitive advantage in the global market. ESG data is speedily boosting an industry of its own. There are many data providers as well as start-ups in the area. The role of data privacy in ESG is strongly connected with environment aspects and concerns data minimization, electronic waste reduction management, energy usage decrease. Data privacy in ESG is strongly connected with society aspects connected to individual privacy respect, privacy programs establishment, as well as personal data protection. Finally, data privacy in ESG is strongly connected with governance regarding privacy framework adoption, privacy program monitor, and privacy regulations compliment. Companies ought to pay significant attention to ESG achievements due to their enormous impact on corporate sustainability as well as to individual and social impact. Environmental, social, and governance (ESG) strategy related to data privacy improves transparency and minimize the risks regarding data management. Additionally, privacy and data ethics in ESG can create a significant economic benefit for enterprises. This chapter explores the principle of proportionality in the context of data protection, as part of a legal ESG strategy. Besides, to be ESG compliant means adhering to the principles of law to ensure responsible and sustainable prosperity.