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Here’s how Cloud ERP is helping organizations achieve ESG and sustainability goals

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Enterprise Resource Planning (ERP) systems have become essential tools for businesses of all sizes, helping them manage critical business functions such as finance, human resources, supply chain management, and more. However, as businesses increasingly focus on environmental, social, and governance (ESG) issues and sustainability, they are looking for ways to leverage technology to support their initiatives. One way to do this is by taking their ERP systems to the cloud. Here are five key ways in which this can help a company with its ESG and sustainability initiatives: –

Reduced Environmental Footprint

Moving ERP to the cloud means that businesses no longer have to maintain on-premises servers and other hardware. This can significantly bring down the energy consumption and carbon emissions. By using shared infrastructure in a data center, cloud ERP providers can achieve much higher levels of efficiency, using less energy to deliver the same computing power. The Cloud ERP providers handle the ERP and compute requirements of multiple companies and hence, they are investing in renewable energy sources to power their data centers. This will further reduce the carbon footprint and help organizations and Cloud ERP providers to reduce carbon emissions.

Increased Transparency

Cloud-based ERP systems can provide companies with real-time access to data and analytics, enabling them to track their environmental and social performance more accurately. With this information, businesses can identify areas where they need to improve and implement strategies to reduce their environmental impact, such as reducing waste or optimizing transportation routes. This increased transparency can also help companies to adhere to regulatory requirements. It also enables the company to showcase its commitment to sustainability and create a positive image in the minds of the stakeholders, regulators, and the media.

Improved Collaboration

Cloud-based ERP systems can also improve collaboration between different departments and stakeholders within a company. By providing a single source of truth for data, employees can more easily work together and make better decisions. This can help businesses identify areas where they can reduce waste, improve efficiency, and reduce their environmental impact. Additionally, cloud ERP systems can help companies to engage better with their supply chain partners. This collaboration can enhance movements through the supply chain, reduce wastage and unnecessary energy spent on transportation and logistics. Hence, this collaboration between the company and its vendor/supplier ecosystem can significantly reduce any negative impact that it might have been creating hitherto.

Reduced Costs

Moving ERP to the cloud can also help companies to reduce costs, which can be reinvested in sustainability initiatives. By using a subscription-based model, companies can avoid large upfront costs for hardware and software licenses. Furthermore, cloud ERP systems are more flexible and scalable than on-premises solutions, enabling businesses to adjust their computing resources quickly and seamlessly. This can help them to reduce waste and optimize their resource usage, further reducing their environmental impact.

Enhanced Resilience

Cloud-based ERP systems can also help businesses become more resilient to climate change and other disruptions. By using the cloud, companies can easily back up their data and applications, ensuring that critical business functions can continue in the event of a natural disaster or other disruption. Additionally, many cloud ERP providers offer disaster recovery services, enabling businesses to quickly recover from unexpected events and reduce downtime. This can help businesses to maintain continuity and sustainability while facing significant challenges.

In conclusion, taking ERP to the cloud can help companies to support their ESG and sustainability initiatives in several ways, including reducing their environmental footprint, increasing transparency, improving collaboration, reducing costs, and enhancing resilience. By leveraging cloud-based ERP systems, businesses can better track their environmental and social performance, identify areas for improvement, and implement strategies to reduce their impact on the planet. Additionally, by reducing costs and enhancing resilience, cloud ERP systems can help businesses to better invest in sustainability initiatives and ensure that they are better prepared to respond to future challenges.

Does your organization need assistance in modernizing its ERP? Write to us at and our team of experts will be glad to help you. Our service offerings include but are not limited to – Oracle Fusion Cloud Applications, Oracle EBS, Cybersecurity, and RPA etc.

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