--- sourceDocument: Yokohama Environmental, Social, and Governance Management sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/yokohama/environmental-social-governance Release : - yokohama ft:locale : - en-US ft:publication_title : - Yokohama Environmental, Social, and Governance Management ft:clusterId : - esgv bundleId : - esgv workflow : - Technology --- # Operational Sustainability Management (formerly ESG Management) use case # Operational Sustainability Management (formerly ESG Management) use case {#ariaid-title1} * Release version: Yokohama * * Updated July 31, 2025 * * ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 3 minutes to read Summarize ![AI sparkle icon](https://servicenow.com/docs/portal-asset/ai-sparkle-icon) Summarized using AI This content was generated using new OpenAI-powered functionality. Results are provided on an as is basis and are not guaranteed to be accurate or complete. ## Summary of Operational Sustainability Management (formerly ESG Management) use case The Operational Sustainability Management use case supports organizations in establishing and managing their sustainability programs. This process involves setting up a sustainability program, defining and tracking metrics, complying with regulatory requirements, and generating disclosures to report sustainability performance. Show full answer Show less ## Key Features * **Setting Up the Program:** As an ESG administrator, assess materiality to identify significant topics influencing stakeholders. Define broad goals and specific targets for sustainability initiatives. * **Defining Metrics:** Collect relevant sustainability data using manual, calculated, and automated metrics. Key metrics include carbon emissions, energy consumption, waste management, employee diversity, and governance practices. * **Measurement Reporting:** Track performance against established thresholds and document any issues when metrics do not meet expectations. * **Reporting Framework:** Develop a reporting framework based on standards like GRI, SASB, and TCFD to define reporting boundaries and disclosure protocols. * **Generating Disclosures:** Create an annual sustainability report that summarizes the company's sustainability performance, including achievements, challenges, and future initiatives. ## Key Outcomes By implementing Operational Sustainability Management, organizations can effectively measure and report on their sustainability efforts. This leads to improved accountability, enhanced stakeholder trust, and alignment with regulatory frameworks, ultimately supporting long-term sustainability goals. The operational sustainability use case consists of multiple processes such as setting up your operational sustainability program, defining metrics, collecting data for metrics, adhering to regulatory frameworks, and generating disclosures. ## Setting up the Operational Sustainability Management program {#new-esg-use-cases__section_k5n_k2c_sxb} As an ESG administrator and ESG program manager, you must begin by setting up the operational sustainability program. The set up requires the following steps: * Assessing materiality: Assessing materiality enables you to discern the most significant material topics and their respective areas of impact on your stakeholders and organization. Firstly, you identify the material topics that hold the greatest importance for your stakeholders and possess the most substantial influence. The identification of topics happens externally and then they are documented in the Operational Sustainability Management application. * Defining goals and targets: As an ESG program manager, you can choose to create goals and targets for your material topics. Goals and targets play a crucial role in driving and measuring the success of an operational sustainability initiative. Here's a brief explanation: 1. Goals: Goals in an operational sustainability initiative are broad, long-term aspirations that define the overall purpose and direction of sustainability efforts. They are often aligned with the company's mission, values, and stakeholder expectations. Examples of operational sustainability goals include reducing greenhouse gas emissions, promoting diversity and inclusion, and improving corporate governance. 2. Targets: Targets are specific, measurable, and time-bound objectives set to achieve the broader operational sustainability goals. They provide clarity and focus, enabling organizations to track progress and demonstrate accountability. Targets can be established for different aspects of operational sustainability, such as environmental impact, social issues, and governance practices. When you set targets, you must also specify the sources from where the target will obtain data. {#new-esg-use-cases__ol_kjn_cvc_sxb} * Environmental targets: These relate to reducing the company's environmental footprint and promoting sustainable practices. They can include targets for carbon emissions reduction, water and energy conservation, waste management, and adoption of renewable energy sources. * Social targets: These focus on addressing social issues and fostering positive impacts on communities and employees. Examples of social targets include increasing workforce diversity, ensuring fair labor practices, promoting employee well-being and safety, and supporting community development initiatives. * Governance targets: These targets emphasize the implementation of robust governance frameworks and ethical business practices. They may involve enhancing transparency and accountability, strengthening board independence, promoting responsible executive compensation, and ensuring compliance with legal and regulatory requirements. {#new-esg-use-cases__ul_ljn_cvc_sxb} * Scoping entities: Each goal is associated to an entity that must be tracked for the progress being made. {#new-esg-use-cases__ul_sqn_nkc_sxb} ## Defining metrics {#new-esg-use-cases__section_mdd_lmc_sxb} As an ESG metrics administrator, establish a comprehensive data collection process to gather relevant sustainability data across all operations. The data can be collected using metric definitions. The three types of metric definitions are [manual, calculated, and automated](https://servicenow-prod.fluidtopics.net/PgePpCWRFq2KLja0GWHeJQ "A metrics manager defines the metrics by creating a metric definition. A metric definition is a template-level record. In the metric definition, you set the core properties of the metric, such as unit, direction, nature, precision, and category. The metrics collect the scores, and these scores get rolled up into the metric definition."). Identify the key operational sustainability metrics aligned with industry best practices, such as carbon emissions, energy consumption, waste management, employee diversity, workplace safety, supply chain sustainability, and corporate governance. Ensure data accuracy by implementing appropriate tracking systems and engaging relevant stakeholders such as data providers for manual metrics. ## Measurement reporting {#new-esg-use-cases__section_ffq_nmc_sxb} Once the material topics are identified, the ESG metrics administrator and an ESG program manager collect the metrics that are of utmost importance to the organization. You can report on the performance of these metrics against predetermined thresholds and objectives, as well as document any issues that arise when the metrics fail to meet the thresholds. ## Reporting framework {#new-esg-use-cases__section_tmj_j4c_sxb} As an ESG program manager, develop an operational sustainability reporting framework based on recognized standards like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD). The framework defines reporting boundaries, disclosure protocols, and data. ## Generating disclosures {#new-esg-use-cases__section_nhh_mmc_sxb} As an ESG disclosure manager, using the collected data, generate an annual sustainability report. The report provides a comprehensive overview of the company's sustainability performance, including quantitative and qualitative data. Highlight the achievements, challenges, goals, and future initiatives related to environmental impact, social responsibility, and corporate governance.