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.
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?
The two concrete steps of our approach are:
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.
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.
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?
An SFDR project consists of three parts: