CC BY
0УДК 004 Omirali N. T., Akylzhanova S.
Omirali N.T.
fourth year bachelor's student majoring in finance Kazakh-British Technical University (Almaty, Kazakhstan)
Akylzhanova S.
fourth year bachelor's student majoring in accounting and audit Kazakh-British Technical University (Almaty, Kazakhstan)
USING BIG DATA ANALYTICS FOR MONITORING AND EVALUATING ESG PERFORMANCE
Аннотация: we're interested in how big data analytics can help businesses care more about ethics, society, and government (ESG). Let's look at how businesses can use big data analytics to better report on, track, and improve their ESG progress.
Everyone in the world wants more responsibility and exposure. In this case, big data can help you make guesses, find out important facts, and quickly keep an eye on your efforts to be better.
Many researchers from past studies and real-life cases of companies that have done good ESG work with big data are used in this piece. It turns out that big data analytics helps businesses make sure that what they do fits with their long-term plans. It also makes ESG reports better and faster. These tools can help people deal with risks and make new business plans for the long run. Businesses should use advanced analytics and subject-matter experts to maximize big data. Data as part of an ESG strategy may help organizations meet regulations, find partners, and make more money.
Data-driven technologies are improving morality and the environment.
Ключевые слова: big data, ESG performance, analytics, sustainability, monitoring, corporate responsibility.
Introduction.
These days, businesses need to use big data analytics. Such tools help organizations gather and analyze large amounts of data, regardless of how well-organized or somewhat disorganized the data is. They are beneficial in a variety of fields, such as banking and healthcare. But now they're also helping companies manage how they impact the environment, treat people, and run their businesses—what's called ESG (Environmental, Social, and Governance). ESG performance is really important these days. Investors, customers, and government officials are all paying attention. Big data isn't just about having fancy tech anymore—it's a smart way to help companies be more open and honest about what they do and how they do it. Handled by hand, old methods of keeping track of ESG often take a long time and are usually wrong. Thanks to the comprehensive and crucial data provided by big data analytics in real time, these challenges may be resolved. Internet of Things devices can monitor a company's carbon footprint. You can learn a lot about your supply chain's fairness and employhappiness via text mining and social media research. The right people are sitting on business boards, and rules are being followed. Data-driven solutions abound for all these problems as well as others. Big data analytics in ESG projects benefits for companies. This reduces risks, facilitates more seamless functioning, and gives stakeholders trust. Big data analytics and ESG performance might help longer term procurement projects. The book covers their teamwork. It addresses case studies, current technical innovations, and the advantages and disadvantages of using big data into ESG evaluations.
Literature review.
Big data analytics is redefining companies' operations to provide better knowledge of ESG (environmental, social, and governance) performance. In 2024, Pesqueira and Sousa noted that companies in areas like health are creating different capacities depending on "big data" that would boost their sustainability. Since one need to appropriately manage ESG factors, using real-time monitoring and prediction analysis helps one reach these goals. Two main advantages of better speed and quality of ESG reports have come up from the research. One frequent approach that could take
a lot of time and cause errors is manual data handling. As a result of being able to give accurate and fast information, early detection of trends and possible threats improves both reports and decision-making. Concerns concerning data privacy and security must also be addressed in order to preserve stakeholder confidence. However, these limitations present opportunity for innovation in the development of rigorous governance systems that secure sensitive information while maximising analytical potential (Pesqueira & Sousa, 2024). Combining dynamic capabilities with big data analytics (BDA) is essential for bolstering ESG activities in the pharmaceutical industry, according to Pesqueira and Sousa (2024). They underline that DC should be viewed as an enabler of BDA systems, and hence as the critical component in supporting enterprises in dynamically responding to real-time changes in their ESG KPIs. Businesses may be able to tackle social, governance, and environmental issues and make better judgments by using these creative tactics, especially as market conditions and legislation shift. Aligning business models with ESG goals builds accountability and trust among stakeholders. Pesqueira and Sousa underline that managing big data analytics within ESG systems calls for a spectrum of knowledge. Their studies highlight the importance of creating a culture of learning and adaptation, which will help companies to link technology with moral behaviour so that they may reach sustainability and involvement of stakeholders. Also, being investigation is how to use big data to improve ESG performance. Improved technology has let us recognise patterns, forecast sales, and streamline production. Pesqueira and Sousa (2024) show how much big data enhances the delivery of medicine by allowing more accurate diagnosis and targeted therapy. As Choi and Park point out in 2022, it also fosters industry-wide innovation by identifying trends and patterns that result in fresh company models and products. High ESG performance is clearly great value. It shows that a business is dedicated to social responsibility and promotes long-term prosperity.Good ESG policies allow a firm to build its image and lower risks connected to social, environmental, and governance issues.Companies with exceptional environmental, social, and governance (ESG) performance will attract more investors in 2023, Jin and Lei project. This is true as ESG issues are becoming ever more
important in investment choices. Big data skills as well as environmental, social, and governance (ESG) performance play another crucial role determining corporate value.
The enterprise value of a corporation is the full worth of its tangible and intangible assets. Market opinions of risk and development potential influence it (Alkarn et al., 2022). Research shows that by getting shareholder support and allowing better capital allocation choices, attending to corporate social responsibilities might significantly raise company value (Liang et al., 2022). In this context, big data technologies are thus quite crucial as they improve operational performance and enable sensible decision-making. Many experts discussed at the DataFusion conference the need of digitising ESG policies and the need of major corporations creating whole investment strategies. Integrating ESG policies with digital solutions to deal with world problems like climate change is very important, according to the Skolkovo Institute of Science and Technology. Supporting ESG standards also depends much on schools teaching professionals capable of handling challenging sustainable situations.
Methodology.
This paper employs a mixed-methods approach combining qualitative and quantitative research instruments. Using both of these methods taken together, we will closely examine how big data analytics influences ESG success. Data for this project came from scholarly publications and other secondary sources. Many commercial and academic publications may also help you learn about the most recent methods and approaches used to monitor ESG performance. Fieldworker interviews and case studies are two ways to get understanding of real-world operations and issues. Big data analytics solutions using strong data processing methods to manage massive datasets enable one to sand forecast ESG metrics in real time. Using machine learning methods to identify trends and patterns in ESG data allowed one to project environmental success. Statistical analysis software was utilised to examine numerical data and show effectively big data analytics performs in producing ESG reports more accurate and on time.
Discussion.
Our results show that statistical analysis of large amounts of data could greatly enhance ESG performance. With real-time data collection and prediction models, businesses may be able to make their ESG reports more accurate and on time. Firms become stars in sustainability when they have this skill. Utilizing big data improves operating efficiency by giving us information on how to best use resources and handle risks, according to our results. Examining how companies utilize energy is one approach companies may look at to develop strategies to lower running expenses and carbon emissions. Moreover, more accurate ESG reporting reveals a company's dedication to ethical leadership and environmentally friendly operations, therefore building shareholder trust. Looking at related research, our findings match those stressing the significance of big data for improved ESG performance. Big data analytics, for example, help to increase the quality and timeliness of reports, which are very vital for strategic ESG management according to Pereira and Sousa's 2024 research. However, using big data for ESG review is still hard. Demand for specific skills makes it hard for many groups to manage huge numbers and analysis tools. So that stakeholders continue to trust the company, worries about data protection and security must be handled. Due to the problems, there are many ways to come up with new ideas. By setting up strong control processes that protect private information and make the most of analysis potential, businesses can use big data to achieve long-term success.
Conclusion.
The important thing is that big data can change ESG models. Automated data collection, high-precision analytics, and monitoring using modern technology can solve problems or prevent them from occurring in the shortest possible time. Artificial languages and social media monitoring can be used to study the social aspects of ESG data, such as employsatisfaction and public opinion. For many nonetheless, privacy and protection remain difficult. Addressing these issues head on requires a comprehensive plan that includes infrastructure upgrades, workforce skills upgrades, robust data management mechanisms, and relationships with technology providers. To
sum up, big data analytics are more than just a tool to monitor ESG performance. Using data is a way for businesses to make sense of sustainability, being able to lessen risks while also making an impact towards a new more responsible, sustainable future. The research results also highlight that organizations must work to embrace the adoption of big data solutions not only to adhere to ESG standards but as a further investment in long-term growth and innovation. By doing so, companies can help make sure that their sustainability efforts generate true value to both society and the environment.
СПИСОК ЛИТЕРАТУРЫ:
1. Alkarn, F., Albitar, K., Hussainey, K., & Venkatesh, V. (2022). Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG). Technological Forecasting and Social Change, 175, 121423. https: //doi .org/ 10.1016/j .techfore .2021.121423;
2. Hico. (2024, January 11). ESG performance: Key Metrics and data analytics: Hico-Group. HICO. https://w.hico-group.com/measuring-esg-performance-key-metrics-and-data-analytics/;
3. Mikalef, P., Boura, M., Lekakos, G., & Krogstie, J. (2019). Big data analytics capabilities and innovation: The mediating role of dynamic capabilities and moderating effect of the environment. Change Management Strategy eJournal;
4. Molly Cullwell (2024, October 9). ESG Data Analytics is a game-changer for manufacturing. dataPARC. https://w.dataparc.com/blog/esg-data-analytics-game-changer/;
5. Patrick Mikalef (2019, May 29). Exploring the relationship between Big Data Analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities. Information & Management. https://w.sciencedirect.com/science/article/pii/S0378720618301022;
6. Pesqueira, A., Sousa, M.J. Exploring the role of big data analytics and dynamic capabilities in ESG programs within pharmaceuticals. Software Qual J 32, 607-640 (2024). https://doi .org/10.1007/s11219-024-09666-4;
7. Skolkovo Institute of Science and Technology. (2023). Global climate changes caused by human activity require industry to switch to environmental tracks. Retrieved from https://w.skoltech.ru/en/news/
