Can ITAM help with ESG?

A publicly-traded company's value can be partially evaluated using ESG (Environmental, Social, and Governance). An updated ESG requirements is starting to be tied to an executive's compensation. ITAM is always looking for a way to get executive management's attention regarding the value of the ITAM program, and ESG may be another value statement. But can ITAM help?

Environmental

This is perhaps the easiest to see. The hardware disposal component of the ITAM program is tasked with identifying disposal vendors that dispose of electronic waste according to applicable laws.

But the vendor management component of the ITAM is another opportunity. A strong ITAM vendor management program provides insight into the supply chain and how IT assets are manufactured, and their impact on the environment.

Social

Once again, vendor management comes into play. Are the organization's vendors manufacturing IT assets using slave labor? What is the vendor's position on labor? Should IT be looking at the vendor's ESG?

Do IT standards meet the needs of a diverse labor force? I believe working from home due to COVID may have shined some light on what an employee's workstation requires.

Employee and customer data security can be part of social responsibility. ITAM provides the processes, policies, and tools required to maintain an accurate inventory of assets. This inventory is then used by IT security to secure personal identifiable information.

Governance

ITAM has always supported corporate governance goals such as software compliance, privacy laws (HIPAA, GDPR), and e-waste laws (EPA, WEEE). Additionally, ITAM can provide insight into the spending of the budget for IT. 

Conclusion

ESG is seen as a tool for investors to evaluate an organization. ESG is also used for executive compensation. ESG is evolving, and while the adoption rate is low, there is speculation ESG will grow in use. There are many articles on ESG, and I strongly recommend the IT asset manager research ESG in their quest to enlighten their executive management on the value of ITAM.