Driving ESG Excellence: How Workiva Maintains Its 'AAA' MSCI ESG Rating
By: Mandi McReynolds
Workiva Inc. (NYSE: WK) proudly announces its 2024 “AAA” MSCI ESG Rating,positioning us in the top 12% globally among software-as-a-service (SaaS) companies. Having maintained the highest possible rating awarded by MSCI four consecutive years reinforces our industry-leading performance and dedication to excellence. As we have said before, our focus isn’t on chasing scores but on establishing a robust ESG strategy grounded in materiality and stakeholder engagement. Drawing from our experiences and lessons we’ve learned along the way, we want to share three key strategies that can help other organizations propel forward as leaders in ESG: collaboration, innovation, and accountability. If you are just starting on this journey, the links provided in this article will direct you to some helpful resources.
Elevate Collaboration: Uniting Stakeholders for Synergy
Effective ESG leadership requires fostering collaboration beyond traditional boundaries inside and outside the business. Start by embedding ESG into your organization’s governance structure. Establishing an executive ESG task force to work with your board’s nominating and governance committee accelerates the integration of sustainability goals into strategic planning and daily operations. The aim of Workiva’s ESG Task Force is to align business value, decisions, and ethics with ESG considerations, regulations, and third-party standards.
Next on the collaboration road map is to build strong relationships with key stakeholders to understand your company’s ESG risks and opportunities. Early on in our ESG journey, Workiva conducted an ESG materiality assessment with our internal and external stakeholders, including suppliers and industry experts. Additionally, engaging our employees in sustainability initiatives helps to foster a culture of environmental responsibility and awareness within our organization. By educating employees on sustainable practices and the importance of sustainability, we empower them to make informed decisions that contribute to our ESG targets. As we look to the future with regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) becoming required, the disclosure of environmental and social impact becomes an opportunity to make conducting a double materiality assessment the next priority.
Lastly, establishing an external ESG advisory council ensures you are staying on top of best practices and emerging trends in ESG. By leveraging the expertise of external professionals who specialize in ESG issues, your organization can ensure that it is not only compliant with current regulations but also proactive in adopting best practices and staying on top of emerging trends and regulations. Workiva’s external advisory council enhances the credibility and transparency of our ESG efforts, demonstrating a commitment to rigorous and unbiased practices, which also builds trust with our investors and other stakeholders.
Innovate with Purpose: Harnessing Technology for ESG Impact
Leveraging technological innovations can significantly enhance your ESG strategy. Workiva’s 2024 ESG Practitioner Survey reveals that 92% of companies are investing in technology to enhance collaboration among reporting teams. Therefore, implementing advanced reporting technologies that integrate with traditional financial systems greatly improves an organization's ability to report accurate, efficient, and transparent ESG data. Furthermore, automating data collection will save you a considerable amount of time and resources, thus enabling you to focus on your most important work the strategic ESG initiatives rather than the intricate details of report preparation.
Generative AI is another innovation to explore. Workiva leverages generative AI to help simplify the drafting of our ESG report and enhance the efficiency, accuracy, and compliance of our report with established frameworks such as GRI, SASB, TCFD, and CSRD. AI-driven tools are also crucial for ensuring data accuracy and consistency, which is essential for maintaining the credibility of ESG reports in the eyes of investors, regulators, and other stakeholders. Moreover, these AI solutions can be customized to cater to the unique needs of your organization, ensuring that your report not only meets regulatory requirements but also reflects your company’s specific ESG priorities and initiatives.
Build Confidence and Accountability: Transparent Data Earns Trust
By demonstrating a commitment to transparency and accountability, companies build trust with their stakeholders which is critical for driving long-term success in your ESG initiatives. Accountability involves setting ambitious but achievable targets, regularly reporting on your progress, and being transparent about the challenges your company is facing. Regular monitoring and reporting demonstrates your company’s commitment to continuous improvement and strengthens your credibility. For example, at Workiva we review our ESG targets with our taskforce on a quarterly basis and publish an ESG Highlights report ahead of our full ESG Impact Report each year.
Transparent and assured data is crucial for accurate ESG reporting. But don’t take our word for it, 88% of respondents to Workiva’s 2024 ESG Practitioner Survey also acknowledge the importance of ESG data assurance in achieving their organizational goals. Transparent data ensures that all aspects of your organization’s ESG performance are visible, allowing stakeholders to scrutinize actions and results. When data is easily accessible and clear, organizations are held accountable for their commitments, as there’s no room for hiding inconsistencies or misrepresentations. Transparent and assured data provide stakeholders with confidence that your organization’s ESG efforts are genuine, substantiated, and aligned with broader goals. When stakeholders can clearly see and rely on the accuracy of ESG data, they are more likely to trust your organization’s leadership, long-term vision, and commitment to sustainability and social responsibility. This trust, in turn, enhances the organization’s reputation and fosters stronger relationships with your stakeholders, encouraging long-term loyalty and support.
In conclusion, we believe a holistic approach to ESG not only enhances Workiva’s sustainability practices but it also drives long-term success and business value. As we continue to navigate the evolving ESG landscape, we remain dedicated to sharing our insights and strategies with other organizations. By elevating collaboration, harnessing innovation, and building accountability, we believe that together we can drive meaningful progress and create a sustainable future for all.
Mandi McReynolds is the Chief Sustainability Officer at Workiva, the only unified platform for financial reporting, ESG, audit, and risk. Mandi has more than 15 years of experience leading corporate responsibility and environment, social, and governance teams across four industries. For more information, visit workiva.com.