ESG Reporting

Consumers, investors, legislators and value chain partners have a growing interest in the sustainability performance of companies. Reliable, comparable and up-to-date Environmental, Social and Governance (ESG) information is therefore becoming increasingly important and it will soon even be mandatory. High quality ESG reporting will help companies to remain competitive in the future, fine tune their strategy and business model and seize opportunities.

The EU is introducing the Corporate Sustainability Reporting Directive (CSRD) and Sustainable Finance Disclosure Regulation (SFDR). As a result, both companies and financial institutions will need to become more transparent by increasing their disclosures. All ESG information has to be comparable and reliable. The EU has therefore developed sustainability reporting standards (ESRS) and a taxonomy regulation that define what economic activities may be qualified as environmentally sustainable.

Approach for Companies (CSRD)

We can ensure that the organisation complies with the ESRS and Taxonomy Regulation in just two steps. The ESG status will be visualised in a clear dashboard and all the reports are easily shareable with internal and external stakeholders. All relevant ESG data will be registered, and the reporting process will be standardised and automated with an audit trail. The organisation will be able to maintain this independently.

What are results of the project?

  • Visualisation of ESG status in a clear dashboard
  • Automated and standardised external ESG reports with audit trail
  • ESG Reporting Manual​
  • Future-proof tooling for internal and external ESG reporting
  • Selection of relevant ESRS topics to comply with CSRD
  • Optimised ESG data flows

The two concrete steps of our approach are:

  • 1. ESG Scan

    We provide clarity on the organisation’s reporting requirements and develop a clear roadmap. We map out the relevant ESG topics for the organisation and assess the eligibility of economic activities for the taxonomy. Through an analysis of building blocks (current processes, data, and reports), we can create a project plan for implementation.

  • 2. Implementation

    During the implementation project, we bridge the gap between the current and desired situation. The most important aspect is creating proper data registration in processes and systems. We will implement a reporting cycle and provide training to employees to ensure that the organisation becomes self-sufficient in maintaining and updating ESG reports.

Approach for Financial Institutions (SFDR)

We create a dashboards that provide detailed insight into the sustainability performance of the entire investment portfolio. If portfolio companies fall under the CSRD legislation, the relevant data can be extracted directly from the CSRD report.

What are the results of the project?

  • Reporting to meet the requirements of the SFDR
  • Fund management has sufficient data to test investments and qualify them as ‘environmentally sustainable’
  • Fund management can report on the percentage of (environmentally) sustainable investments
  • Portfolio companies can provide required data in a uniform and secure manner based on templates
  • Fund management has access to the PAI indicators (at asset and portfolio level) and can report on them

An SFDR project consists of three parts:

  • 1. ESG Data Diagnose

    • Analysis of the current (registration) processes, ESG data and reporting
    • Fit-gap analysis based on SFDR, Taxonomy and stakeholder needs
    • Determine MVP together with the stakeholders
    • Plan of approach
  • 2. Design & Deliver

    • Selection of reporting tool
    • Design registration process and templates
    • Design dashboard
    • Implementation of tooling and registration process
    • Go-Live reporting tool and dashboard
  • 3. Deployment

    • Training and handover to users
    • Manuals for fund management and portfolio companies
    • Final validation of deliverables
    • Project closing & evaluation

Do you have questions related to ESG? Don’t hesitate to contact our expert Sven van der Sanden directly.

It feels good to have a partner that does not only provide advice but also implements the recommendations and feels responsible for the result.
Rikkert Beerekamp Former CFO Avedon Capital Partners