ERP software not up to environmental tracking, says report

Companies want to show regulators, investors and customers the evidence of their green efforts

Fund managers are increasingly assessing environmental risks as part of investment decisions

Organisations want to track their environmental performance so they have hard evidence to show regulators, customers and investors, but their IT systems largely aren't up to the job, a recent survey has revealed.

The survey was conducted among c-level executives in the US, Benelux and Scandinavia by supply independent research firms IDC, Heliview Research and RBInteractive Research on behalf of supply chain systems provider IFS. It found that the vast majority of respondents consider it important to track environmental profile: 83 per cent in the US, 82 per cent in Scandinavia and 79 per cent in Benelux.

Pressure from regulators, investors and customers were the main reasons for wanting to document environmental impact, the survey found. Reducing costs through environmental management was also a requirement for 22 per cent.

However, nearly three quarters of European respondents (74 per cent in Scandinavia and 75 per cent in Benelux) and 47 per cent of in the US, said they can't track their environmental footprint using their existing ERP systems.

“The results highlight that despite the perceived importance of tracking and lowering environmental footprints, organisations remain unable to obtain the necessary information from their core business systems,” said IFS chief executive Alastair Sorbie.

“Environmental issues are becoming increasingly important, not only for customers, but also for the capital market looking to invest in more ethical and sustainable organisations,” he added.

Indeed, in February the not-for-profit Environmental Investment Organisation launched a carbon index of the world's largest companies with the aim of helping fund managers build carbon emissions into their investment decisions.