Mastek has been working on a roadmap towards ESG standards in retail that combines everything we have learned in cloud, software and consulting:
Optimize your cloud energy usage
Simply migrating to the cloud with a Cloud Service Provider (CSP) isn't sufficient to meet the ESG standards that consumers expect. While the initiatives that CSPs take create efficient infrastructure, retailers need to maximize usage and minimize energy consumption.
Here are the functionalities that retail CIOs should look for to run an optimal cloud environment that also reduces costs:
- 1. Use metrics such as vCPU hours, storage, and data transfer to evaluate and measure consumption over time
- 2. Choose a CSP that provides dashboards to connect third-party sustainability data and analyze it using enhanced ESG reporting
- 3. Transfer workloads to energy-efficient CPU platforms which offer an identical level of performance with lower energy usage
- 4. Break down your architecture into microservices so that you can run specific applications without using the power of consumption of the entire stack
Leverage Enterprise Performance Management (EPM) software
Retail CIOs need a cloud EPM to both fulfil regulatory demands and understand their current ESG practices and adjust them as required. Best practice solutions will look at all touchpoints across your business, collect the data, and pull it into a dashboard so that you can assess whether your targets are achievable and realistic.
Key ESG reporting capabilities for Cloud EPM include:
- 1. Connect disconnected ESG data sources across the enterprise and standardize KPIs to support common sustainability goals
- 2. Model long-term goals and adjust plans in real time to align with multiple functions
- 3. Monitor your plans and be alerted to any patterns, anomalies, or unexpected variations
- 4. Share metrics in reports to enable stakeholder collaboration and track the reporting requirements of regulatory organisations
Implement consulting frameworks to drive ESG across the supply chain
The toughest challenge for retail CIOs is the supply chain. The fact that supply chains are increasingly fast-moving and complex makes it difficult for businesses to understand their sustainability risks and meet ESG goals.
A mature consulting framework for ESG should cover these steps:
- Step 1: Map end-to-end supply chain processes and assess to what extent you're within or outside the existing regulatory scope
- Step 2: Set up surveys and frameworks to identify gaps in your reporting process and create common enterprise KPIs
- Step 3: Tailor solutions and assessments to address specific ESG issues along the supply chain
- Step 4: Build governance and resource requirements to support regulatory requirements
Monitor assets with IoT to reduce supply chain waste
True smart retail requires systems that support the continuous streaming of data directly into an IoT hub to predict, refine and improve business outcomes in real time. Then AI and machine learning algorithms models can be applied to create insights for improvements to in-store operations.
An effective IoT network for retail should include:
- 1. Smart sensors can automate temperature checks for refrigerators, freezers and ovens to reduce the risk of food deterioration.
- 2. IoT devices can provide real-time diagnostics for predictive maintenance, to save on energy costs and food waste from faulty refrigeration equipment.
- 3. Sensors also enable in-store alerts for staff so that they can resolve unexpected spikes in temperature before they impact compliance and quality.
When you partner with Mastek, you can quickly generate additional and new business value across the ESG value chain.
Conclusion: Meet Customer Expectations with ESG Data
As with any new digital innovation, CIOs can play a driving role in their enterprise goals. In the case of ESG, retail CIOs are poised to catch up with other industries by reducing energy consumption and waste. Orchestrating the right technologies across cloud optimisation, EPM and IoT can help you to achieve ESG outcomes, especially when combined with a robust consulting framework to map your end-to-end supply chain processes.
If you would like more information about how Mastek's retail ESG solutions can help you, send us an email. We'll schedule a meeting to discuss your existing ESG technology and explore how your company can benefit from ESG data as you transition to a sustainable organisation.