Manage entities in ESG Management
Summarize
Summary of Manage entities in ESG Management
ESG Management focuses on evaluating entities based on Environmental, Social, and Governance criteria, crucial for investors and reporting agencies. Entities can include people, processes, departments, or applications, like datacenters or subsidiary companies, which are categorized as parent and child entities based on their reporting and measurement relationships.
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Key Features
- Entity Classification: Entities can be tagged using entity classes to provide conceptual information, such as categorizing office locations.
- Entity Types: Group entities by filtering attributes, allowing for better organization and identification. Examples include Employee and Product, each with specific attributes.
- Entity Management: Create, update, and manage entities and entity types to align with ESG goals, ensuring accountability and performance measurement.
Key Outcomes
By effectively managing entities in ESG Management, customers can:
- Define and measure performance against ESG goals for various entities.
- Organize entities into types and classes for streamlined reporting and assessment.
- Enhance stakeholder disclosures concerning environmental and governance metrics.
You can learn about how ESG, which stands for Operational Sustainability Management (ESG) is used by the investors and reporting agencies to evaluate different entities that they want to invest in, such as different business units in an organization.
Entities can be people, processes, departments, or applications. For example, if your goal is to reduce the carbon emission from the datacenters, then you can consider datacenters as entities.
As another example, assume you’re a company that has subsidiary companies. Your goal is to measure greenhouse gas emissions (GHG) in your subsidiary companies. Both your company and your subsidiary companies are your entities. Your company is the parent entity, while the subsidiary companies are the child entities. Typically, the parent entity handles reporting and measuring the GHG of the child entities.
As part of your ESG Management strategy, you have to provide disclosures to your stakeholders. ESG Management disclosures refer to the disclosure of data that relate to an organization's Operational Sustainability Management performance. These disclosures concern the goals, targets, and metrics that are associated with your entities. By using these disclosures and other metrics, the investors assess and rate the performance of entities based on the ESG parameters.
A parent entity that has the child entities is said to have downstream entities. Any child entity that has the parent entities is said to have upstream entities.
After creating the entities, you can tag similar entities by individually defining an entity class for them or by linking them to an existing entity class.
Entity classes
Entity classes are used to tag an entity or to add the conceptual information about an entity. For example, consider a company that has office branches in three cities. The office space is considered as an entity, while the entity class for these entities is the location of the offices.
Entity types
An entity type is a grouping of entities that is based on filtering attributes. An entity type defines a set of the entities that have the same attributes. An entity type is used to describe and identify an entity that is based on a set of filter conditions.
Consider the following two entity types: Employee and Product. Each entity type has its own attributes.
For Employee, its attributes are employee number, name, department, and designation. In the Employee table of the company database, the sample attributes of an employee are displayed in row E1 as 1001 (employee number), Paul (name), Marketing (department), and PM (designation).
For Product, its attributes are product ID, name, cost, and currency. In the Product table in the company database, the sample attributes of an energy-efficient product are displayed in row P1 as 800 (product ID), Solar Panel (name), 200 (cost), and USD (currency).
Entities and entity types can have a one-to-many relationship. For example, an entity called Hope can have an entity type called Person and an entity type called Organization.