🧭 Microsoft Strategy in Sustainability

The concept of ESG+F refers to the integration of Environmental, Social, and Governance (ESG) criteria together with the Financial (F) aspect in business management. This means that organizations consider not only financial performance, but also their environmental and social impact and the quality of their governance when making strategic and operational decisions.

As mentioned in the previous post, the first axiom establishes that each module must be complemented by others according to applicable regulations. The second axiom sets out the need for a platform that allows all regulations to be unified in a single system and the corporate value chain to be digitized within the company’s own infrastructure.

🤖 Microsoft’s Strategy for ESG+F

Microsoft is betting on a sustainable digital transformation through its Cloud for Sustainability platform, which includes tools such as Microsoft Sustainability Manager (MSM) and ESG capabilities integrated into Dynamics 365 Business Central. This strategy aims to help organizations:

• Measure, report, and reduce their carbon emissions, water consumption, and waste generation.

• Automate ESG data collection and analysis processes.

• Comply with regulations such as Carbon Footprint 214/25, EUDR, CBAM, CSRD, and others through solutions like “Hanasaki Enterprise” or “Hananaki SME-C.”

  
  

Microsoft manages the ESG component through its Sustainability Manager tool, which is part of the Cloud for Sustainability platform. This solution enables organizations to measure, report, and reduce their environmental impact by automating the collection and analysis of data related to carbon emissions, water consumption, and waste generation, as well as facilitating compliance with international regulations. Sustainability Manager Essential is recommended for companies that require basic ESG tracking and reporting features, while the Premium version is suitable for organizations that need advanced automation, data integration, and more complex regulatory compliance capabilities.

Dynamics 365 Business Central incorporates sustainability features that allow companies to integrate ESG criteria into their operational and financial management. Through specific modules and capabilities, the platform facilitates the collection, analysis, and reporting of data related to environmental, social, and governance impact, aligning with international standards. These tools help automate the tracking of key indicators such as carbon emissions, resource consumption, and waste generation, enabling organizations to make informed decisions and move toward more sustainable business management.

🤔 Microsoft Sustainibility Manager vs Microsoft Dynamics 365 Business Central

One of the most frequent questions is whether Dynamics 365 Business Central is sufficient or if there is a need to scale up with Microsoft Sustainability Manager. In this context, Dynamics 365 Business Central includes sustainability features that allow for basic tracking of ESG indicators and support integrating these criteria into operational and financial management. However, if the organization requires advanced automation, data integration, or more complex regulatory compliance, it is recommended to scale to Microsoft Sustainability Manager, which offers specialized tools to measure, report, and reduce environmental impact, as well as to comply with international sustainability regulations.

Comparison MSM + BC

At Hanasaki, we have worked alongside Microsoft to create different modules that range from the most basic Voluntary Carbon Footprint 214/25, and scale module by module with Hananaki with MSM, and soon with Hanasaki without MSM. Our consulting team, lead by ignacio.hernandez@greenaidatahub.com will help identify which solution best fits your business model.