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How does Digital Transformation Boost Your ESG Efforts?

Investors around the world are increasingly embracing ESG principles, which are driven by various concerns on economic inequalities, climate change, cyber security, social injustice and more

As stipulated by the International Sustainability Standards Board (ISSB) in its General Requirements for Disclosure of Sustainability-related Financial Information, which is supported by G20, “An entity’s ability to generate cash flows is inextricably linked to the interactions between the entity and its Stakeholders, Society, the Economy and the Natural Environment throughout the entity’s value chain. The entity’s dependencies and impacts on those resources and relationships give rise to sustainability-related risks and opportunities for the entity.

ESG encompasses a set of criteria that businesses address in their decision-making and operations. The term was popularised in a United Nations report published in 2004 titled “Who Cares Wins”, which also listed down the issues under each of the pillars:

ESG has evolved from a Corporate Social Responsibility (CSR) concept to a full-fledged global framework in ensuring a healthier business approach. It has gained significant traction since its official introduction in 2004. According to Bloomberg Intelligence Head of ESG & Thematic Investing EMEA Adeline Diab and Bloomberg Intelligence Chief Equity Strategist Gina Martin Adams, it is estimated that the value of global ESG investment assets could exceed USD50 trillion by 2025.

Corporate companies in Malaysia are now emphasising more on the ESG initiatives, since Bursa Malaysia requires all the listed companies to include their ESG Report in the Annual Report. As such, listed companies would now prefer to engage vendors and suppliers who adhere to ESG goals in their business ventures.

The better they score in terms of ESG, the greater their chance at winning new business opportunities, as well as capital injection by institutional investors, because it shows that their business model cares about its impact on the community as a whole. This will certainly encourage more companies to adhere to ESG principles.

IFCA Software's Commitment to ESG

As a leader in the technology industry, IFCA Software is committed to making a positive impact on the world by facilitating the adoption of ESG practices among its clients. Here’s how IFCA Software stands out as a champion of sustainability and responsible business practices:

1. Empowering Remote Work: IFCA Software’s mobile-accessible solutions enable employees to work remotely, reducing the Carbon footprint associated with daily commutes and contributing to lower energy consumption.

2. Paperless Operations: By transitioning to digital reporting platforms, such as PropertyX, ContractX, HotelX, and HRX, businesses can significantly reduce paper usage, minimising their impact on forests and conserving natural resources.

3. Cloud-Based Solutions: IFCA Software’s Cloud applications eliminate the need for on-site servers, resulting in reduced energy consumption and Carbon emissions.

Social Impact:

1. Fostering Collaboration: IFCA Software’s solutions promote seamless communication and collaboration among employees, leading to a more engaged workforce and stronger organisational cohesion.

2. Increasing Employment Opportunities through AI: As solutions developed by IFCA Software are embedded with AI-powered speech-to-text capability, this allows persons with disabilities (OKU) to participate in the workforce. Since the software is Cloud-based, they can work from home without commuting to the office. With more OKU being self-reliant, they can have a decent quality of life and depend less on social welfare.

3. Optimising Workforce Deployment: IFCA Software’s digital solutions automate repetitive tasks, allowing businesses to deploy their workforce more efficiently and improve employee satisfaction.

4. Ensuring Diversity, Equity and Inclusion (DEI): Powered by AI, HRX helps entrepreneurs in identifying talents with the right skill sets, and running a more prudent recruitment, upskilling and retention. These will translate to greater DiversityEquity and Inclusion (DEI) and sustainability for the businesses.

Governance Excellence:

1. Transparency and Accountability: IFCA Software’s Digital Collaborative Platforms provide real-time business insights, enhancing transparency and accountability within the organisation.

2. Legal Compliance: IFCA Software’s solutions ensure businesses adhere to relevant rules and regulations, safeguarding them from potential legal and ethical risks including but not limited to Labour Law, LHDN, SOCSO, EPF & MFRS.

3. Ethical Risk Management: IFCA Software’s Claim Management module in HRX includes anti-corruption mechanisms, promoting a healthier business environment and mitigating ethical risk.

4. Robust Cyber Security: In order to defend the integrity of the software, as well as to ensure data security and privacy which are paramount to any business, the X-series solutions have gone through vigorous cyber security tests. This will minimise the risk of security breaches, and offer you a peace of mind while running your business digitally.

Conclusion

ESG has become a driving force in shaping businesses worldwide, and Malaysia is no exception. As companies seek to align with ESG principles, IFCA Software serves as a valuable partner in achieving sustainability goals through its suite of digital solutions. By leveraging digital transformation, businesses can contribute to a more sustainable future while aligning with ESG principles. Embrace the Future of Work with IFCA Software and make a positive impact on your business and the world.

Visit us at https://bit.ly/IFCAESG to discover how IFCA Software can enhance your ESG efforts and drive sustainable growth.