Large corporations in the EU are facing new requirements for their ESG reporting this year. Gaining control of all your ESG data is essential for continuous improvement, and that’s why we’ve developed our ESG Data Accelerator Service – an efficient roadmap to get quality ESG data, as a foundation for your sustainability efforts.
The CSRD (Corporate Sustainability Reporting Directive) sets the legal framework for ESG reporting in EU and the ESRS (European Sustainability Reporting Standards) provides the roadmap for compliance. The CSRD broadens the scope and improves the quality of ESG/ sustainability reporting.
Listed companies, and companies in banking, insurance and credit with over 500 employees and a turnover exceeding 50 million EUR are required to deliver within the new framework. You can read more about that here. The CSRD will gradually broaden its scope during the following years to include medium and smaller companies.
Quality data for quality improvement
Gathering the right data and using it for reporting correctly is essential – and it can be tricky. A key challenge lies in effectively collecting, managing, and assuring the quality of relevant sustainability data. Many companies may also encounter challenges integrating sustainability data into their existing systems and processes, which in turn can be a strain on internal resources. However, automating this data-intensive process offers several opportunities to ease the burden.
The ESRS also requires businesses to perform a Double Materiality Assessment (DMA). This assessment follows an outside-in approach and covers what and how your business is affected from the outside world, such as climate change, increased regulations, and access to resources. It also considers an inside-out approach concerning how your business impacts the environment, society and people.
The outcome of the DMA decides which key areas and data points you need to report on and they are categorized according to ESRS topics and subtopics, which is the starting point for your data collection process. In short, if you have the right data from the start, the process will be much easier.
Getting the data right with Columbus ESG Data Accelerator Service
With our ESG Accelerator Data Service, we address the task of collecting and transforming data in the most effective way, ensuring we get quality data and present it in the best and most useful way for you. The service consists of three modules:
Module 1
This covers the initial assessment and data identification, including the evaluation of the current level of data maturity, the identification of gaps in data for reporting and insight requirements. This includes a DMA, if not performed already. This module also includes scoping of the project and aligning with ESRS requirements - derived from the output of the DMA, identification of the right data and the respective sources, including the quality, granularity and accuracy to identify the needs for the data collection process.
Module 2
This consists of the implementation of the framework for data collection and transformation, including the data collection process, automation opportunities and formatting. The structural/software framework is configured for implementation, deployment and creation of quality data sets, which can be presented for ESG reporting purposes and insights for sustainability performance and improvements.
Module 3
This considers the presentation and visualization of the ESG data including the final evaluation of the key ESG data points to be presented, and how frequent data refreshes should occur. This also incorporates data modelling and development of data visualization and landing pages for environmental, social and governance and verification of the Power BI report.
This flexible and integrable service works well for companies at various stages in their ESG journey. It suits those who are just starting out, where all three modules would be useful, as well as those already experienced in ESG reporting, with Module 2 being the best fit. Module 3 is specifically for companies looking for our help with visualizing and Power BI reporting of ESG data.
Keep up to date with your ESG performance
It's important to have dashboards that display essential information, so you can keep an eye on your sustainability metrics and make improvements where needed. This allows you to track and react to your ESG metrics and enhance performance on key business indicators, helping you develop the right strategies.
With our ESG Data Accelerator, we offer a framework that can collect and transform your raw data into reportable data, and help you excel in your sustainability performance.
If you are interested in getting to know more about our ESG Data Accelerator, please contact me.