Contracts have traditionally been regarded as pieces of paper with a very high value for their owners for all that they entail. Currently, e-signature allows the value of contracts to be maintained but permits them to take their next evolutionary step. The electronic signature helps companies from in all sectors to speed up the hiring of staff and services, while turning offices into paper-free spaces, in line with Environmental, Social and Governance (ESG) criteria.
The chisel on stone, the pen on paper, the typewriter, the printer and finally the e-signature. The process of sealing documents has evolved a lot throughout history, but it is nowadays when the latest evolutionary leap has revolutionised the way millions of professionals work, eliminating the physical support of the signature.
E-signature is a cryptographic mechanism that has the same weight as a handwritten signature is used to indicate knowledge and acceptance of a document. The electronic signature is linked to an audit trail that serves to validate the identity of the signatory to the recipients of the contract. This, unlike the handwritten signature, makes it much more difficult to falsify.
Organisations find in e-signatures a mechanism to also start integrating ESG thinking into their thoughts. With much work to be done on corporate sustainability, these criteria assess the impact of companies on the environment in terms of energy consumption, waste disposal or consumption of raw materials.
Let's look at the benefits of e-signature and how it can contribute to reducing paper use and material consumption in personal and working life.
No handwritten signature, no paper. When done through an electronic device, e-signature not only reduces but also eliminates the need to print documents left and right as it was done in offices, offices and departments of any industry. In addition, all processes prior to the final printing of the document, such as scanning and corrections on already printed paper, are eliminated.
The traditional paper-based signature requires the signatories to be present in the same room. It may not be a problem if they are two people from the same office, but what if they are from different departments, companies or even countries? E-signature means that anyone with an internet connection can receive, examine and sign a legal document in a matter of minutes and from anywhere in the world.
At the same time, it reduces CO2 emissions and avoids using resources to make a meeting that could be eliminated, in order to align itself through responsible commitment to an ESG philosophy.
The e-signature is sent to the parties involved via a secure link, together with the document to be sealed. After agreeing and signing, either with a finger or using the mouse pointer, the parties receive a copy of the document and all signature data is securely stored. The traceability of these is very simple thanks to multiple biometric data of the signatory that are recorded, such as the strength and speed of the stroke, as well as the date, time and location.
All of the above factors lead to a final key benefit: Organisational processes are greatly accelerated and more efficient. This technology facilitates procedures for important firms concerning acquisitions, sales or relevant steps for companies, as it avoids unnecessary travel and makes it possible to streamline the process to a large extent.
It should be noted that this improvement could be maximised, as e-signature is only one of the functionalities offered by Contract Lifecycle Management (CLM), a type of solution that improves all phases of the contractual process, making them more effective, secure and agile.
A wide range of sectors can benefit from a solution such as the e-signature and save high costs on all the materials related to the handwritten signature process. It is no coincidence that, according to the Corporate Legal Operations Consortium (CLOC), 87% of legal professionals using legal technology are committed to e-signature. Even those areas and sectors that are more traditional with regard to signatures, such as the justice system, are taking steps forward to digitise and implement it.
This will lead to a paperless working system, a material that becomes unnecessary in routine company processes. In this way, an ESG-enhanced philosophy to reduce paper consumption will be added to each company's DNA in order to create an environmentally responsible business environment. Discover Bigle Legal's award-winning advanced e-signature and how your company can benefit from the latest in technology and contractual security.