7 June 2022 – written by Rutger de Roo van Alderwerelt
With ESG reporting, companies face increasing data volumes that must be extracted from various data source systems. This increase results from the many ESG topics that determine many reporting standards; climate change, waste management, biodiversity, working conditions, health & safety, and responsible business practices. Despite technological enhancements in data collection and quality in CPM solutions, they remain a significant challenge in corporate sustainability performance management.
Most companies have reliable data collection and quality controls for their financial data, which should also be applied in ESG reporting. Aligning these two processes is vital, as you want financial- and sustainability data to be equally reliable and of the same high-level quality. This will be beneficial when companies need to comply with new audit requirements for ESG reporting in the upcoming Corporate Sustainability Reporting Directive (CSRD) by the Europen Union.
A fully integrated reporting process drives improved visibility and accessibility of your data, leading to more transparency between source data and reported data. Ultimately, this allows for improved insights and better strategic decision-making.
Would you like to learn why data collection and quality are essential in ESG reporting? OneStream, one of our CPM Partners, has published a very enlightening blog on this topic.