How to produce a good ESG sustainability report
The introduction of the new ESG guidelines changed the reporting requirements for many companies.In our last webinar, we explain how you can prepare a good ESG sustainability report and what you need to consider.We have summarized the most important content for you below.
An increasing number of companies recognize the need to address the impact of ongoing climate change on the environment and society. In response to this, the “Corporate Sustainability Reporting Directive” (CSRD) was introduced in early 2023. This new guideline aims to ensure that information on sustainability is as important as financial information, thus encouraging sustainable business practices.
However, there are many aspects to consider in this matter, which is why we, as Transform8 GmbH, in collaboration with our partner, Magnolia Consulting GmbH, and Board, hosted a webinar on the topic of ESG reporting. At the webinar, we explained the key fundamentals from a professional perspective and demonstrated hands-on how to create an ESG-compliant sustainability report using Board’s intelligent planning solution. In case you missed it, or would like to delve deeper into the topic, we have summarized all the key stages of the webinar for you:
1. Who is affected by the new ESG Directive and from when?
All publicly traded companies and those that meet two of the following three criteria:
- Sales revenue > 40 million €
- Balance sheet total > 20 million €
- Employees (Ø) > 250
Companies that were already subject to the NFRD reporting obligation must implement the new ESG directive from 2024, newly affected large companies from 2025, and publicly traded SMEs from 2026 with adjusted standards.
2. What has to be reported according to ESRS?
ESRS stands for European Sustainability Reporting Standard und umfasst viele Bereiche, die innerhalb der Berichterstattungspflicht mit aufgenommen werden müssen. A distinction is made between non-sector-specific topics, such as company data on air pollution, and sector-specific topics, which are published later. In addition, there are company-specific topics on reporting obligations, as well as SME standards.
3 What are hurdles?
The new ESG guidelines will initially require companies to invest time and money, as each company will have to determine individual sustainability indicators in addition to evaluating a lot of new data. Therefore, investments should be made in a suitable data system to make the process of data integration as well as the data preparation of the new KPIs, key figures and data more efficient and easier. In addition, this sensitive information should be securely protected, e.g. by a security system through a suitable tool.
4. What requirements should a tool for CSRD and ESRD fulfill?
As ESG reporting refers to a company’s reporting on its ESG performance, the tool should meet certain requirements in order to be able to measure it, such as a good data management. Because the tool should be able to process large amounts of data from different sources, but also enable automated workflows. In addition, it should be integrable into already existing systems and adaptable to the needs of the user. Additional requirements include the ability to conduct data analysis and validate it.
5. Board as a solution for sustainability reports
With the Tool Board, all of these requirements can be easily implemented, as it enables the user to quickly and easily integrate data and perform real-time data analysis. In addition, reporting and workflows can be automated and data can be securely protected through role systems.
If you have any questions or comments on the subject of ESG reporting or Transform8 in general, please do not hesitate to contact us: info@transform8.de.
