GreenEDI, or how technology can improve your ESG score

Although the biggest motivation for purchasing EDI (tool for the electronic exchange of documents) is saving time and money, EDI will also help your company meet ESG goals, with reporting and reduction of negative impact on the environment. And this topic is increasingly important today, especially for large companies, because, among other things, it will affect the availability of bank loans, money from investors or the company's reputation.

GreenEDI as new term

In the world of technology, the term GreenIT took root already in the 90s, which is a reaction to the fact that corporate IT has a huge negative impact on the environment. Streaming, social networks, artificial intelligence, cryptocurrencies or big data lead to a huge increase in electricity consumption and thus CO2 emissions.

In addition, metals and rare elements are used to manufacture IT equipment, which have a negative impact on the environment, as they are not always fully recyclable and are often mined in developing countries under non-transparent conditions. Progressive companies are therefore solving how to gradually minimize the consumption of energy and materials. In addition to the ecological aspect, energy efficiency is also important to them, which can already mean a competitive advantage.

EDI technology, or GreenEDI, is one of the partial tools for reducing consumption and achieving higher efficiency.

How GreenEDI helps not only within ESG

Since EDI completely digitizes and partially automates the exchange of business documents (most often orders, delivery notes and invoices, possibly others),

• paper consumption is reduced – for large companies it can be thousands of pages per month,
• logistics becomes more efficient – optimizing transport routes saves fuel,
• administrative burden is reduced – the time spent in front of computers necessary for transcribing or processing documents is minimal.

The total savings on one document may seem negligible, but EDI is often used by companies that handle thousands of business cases per month. In their case, the accumulated savings will already be noticeable and will very likely find their place in ESG reporting.

Why ESG reporting is important

The European Commission requires selected companies to include ESG (environmental, social, governance) data in their annual reports. Companies must report how they approach environmental protection, how they treat people (employees, suppliers, customers and affected communities) and how their company is managed from the point of view of ethical principles.

Banks, insurance companies and publicly traded companies with 500+ employees have had this obligation since 2017, and from 2025 companies with 250+ employees, turnover of 40+ million EUR and assets of 20+ million EUR must also provide ESG data. It is sufficient to fulfill only two of these three conditions.

The results of ESG reports are especially important when providing bank loans or money from investors, because banks and investors must by law monitor the ESG impacts of their investments. This is, among other things, the reason why it is so difficult for armament companies to get bank loans today.

Benefits of EDI gain another dimension

If you are one of the companies affected by the ESG reporting obligation, EDI will most likely be of interest to you. Its benefit grows with the number of processed documents, so the tool is most worthwhile for large companies with a high number of business cases. The plus points that EDI brings to your ESG report are a nice bonus.

However, EDI can also be used in medium-sized or smaller companies, where it will help in particular with the optimization of company processes and work efficiency. In addition, its ecological contribution can be presented within the framework of marketing activities.

We will be happy to talk to you about the potential of GreenEDI in your company without obligation. We will calculate the amount of the investment and its return, discuss the implementation process, and answer any questions. Just contact us.

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