Reporting on ESG and CSR
Reporting on sustainability and ESG is increasingly important because it allows companies to transparently communicate their environmental, social, and governance performance to stakeholders, including investors, customers, and employees. The latest development, in shifting from reporting following section 99a in the Danish Financial Statements Act to reporting following the EU CSRD (Corporate Sustainability Reporting Directive) is a game-changer to the legal requirements of ESG reporting.
Reporting is also a way for companies to demonstrate their commitment to sustainability, which can enhance their reputation and help them meet and document customer demands in tenders and ESG questionnaires e.g., Sedex or Ecovadis. There is no one way of making an ESG report, but we often follow the path below:
We help define the scope and boundaries of the report: This step involves determining what ESG regulations and issues will be reported on, as well as the time frame and geographic scope of the report
We conduct a double materiality assessment: This step involves identifying the ESG issues that are most relevant and material to the company and its stakeholders, which will be the main focus of the report
We conduct a gap analysis based on the demands in CSRD and initiate actions to close the gaps and report in alignment with the applicable provisions in CSRD
We help collect and verify data: This step involves gathering data on the company's ESG performance and ensuring that the data is accurate, reliable, and consistent
We help to choose a reporting framework, such as the UN Global Compact, Global Reporting Initiative (GRI), or the Sustainability Accounting Standards Board (SASB), which will help provide a structure for the report
We write the report: This step involves organizing the data and information gathered into a clear, concise, and easy-to-understand report
We ensure a tailored ESG report that meets both legal and market requirements, is action-oriented, and provides stakeholders with a clear picture of your company's ESG performance and targets, and the direction going forward.
For the largest and listed corporations, the EU Taxonomy pushes the demands for information provided in the ESG report or in an integrated annual report even further, which again leads to increased demands on data and performance throughout the supply chain