Together, we are shaping the path to a more sustainable future.
ESG-Reporting
The topic of sustainability is becoming increasingly relevant for many companies. Regulatory requirements are increasing and must be implemented at the EU as well as the global level. In the context of mandatory ESG reporting, sustainability refers to the disclosure of a company's sustainability performance concerning environmental, social and corporate governance issues.
In addition to regulatory requirements, investors, customers and employees also have a central role in the achievement of sustainability goals and the corresponding reporting. Companies must therefore consider the needs and expectations of these stakeholders in their corporate strategy to remain successful. In addition, ESG reporting helps your company uncover potential risks (e.g., water shortage due to climate change), but also opportunities related to sustainability (e.g., solving the skills shortage through appropriate social image/reporting). Therefore, ESG reporting can help to improve your risk management and exploit opportunities for sustainable value creation.
We help you to achieve your sustainability goals and fulfill your ESG reporting obligations.
New regulatory requirements: The Corporate Sustainability Reporting Directive (CSRD) will require annual sustainability reporting from 2025, analogous to financial reporting. This means that operational key performance indicators (KPIs) relating to the environment, social issues and corporate governance will become an integral part of controlling. The companies affected are those that meet at least two of the following criteria:
- balance sheet total of at least 20 million euros
- sales revenues of at least 40 million euros
- more than 250 employees
New regulatory requirements: The Corporate Sustainability Reporting Directive (CSRD) will require annual sustainability reporting from 2025, analogous to financial reporting. This means that operational key performance indicators (KPIs) relating to the environment, social issues and corporate governance will become an integral part of controlling. The companies affected are those that meet at least two of the following criteria:
- balance sheet total of at least 20 million euros
- sales revenues of at least 40 million euros
- more than 250 employees
Identification of sustainability KPIs for ESG reporting
Benefits
- Regulatory requirements
Meet new legal requirements regarding non-financial corporate reporting
- Equalize
Possibility to offset your own CO2 emissions (e.g. with CO2 certificates or the support of reforestation projects)
- Image
Enhancing the company’s image through transparency for customers, investors and other steakholders about its own sustainability KPIs
Our approach
ESG-Reporting
ESG reporting first requires a suitable Data Strategy. Depending on regulatory requirements and the maturity of your data systems, we implement your ESG Reporting individually according to your wishes. Typically, we proceed as follows:
1
Kick-off workshops
Workshops are held with all relevant managers (e.g. from Controlling, Compliance, HR or Marketing) to clarify the technical requirements for ESG reporting.
Possible topic areas can include:
E - Environmental: refers to the impact of business activities on the natural environment as well as possible environmental effects on business operations. Example topic areas include climate change, energy consumption, water and waste management, air pollution, pollution control, biodiversity, sustainable procurement, renewable energy, or circular economy.
S - Social: covers the company's relationship with its employees, customers, suppliers and society in general. This includes the topics of working conditions, human rights, equal opportunities, diversity and inclusion, occupational health and safety, labor relations, employee engagement, data protection, customer safety, and social responsibility in the supply chain..
G - Governance: refers to the way your company is managed. refers to the way your company is managed. In particular, the topics such as ethical business practices, transparency, corporate social responsibility (CSR) as well as compliance can be relevant here.
2
Data sourcing
Based on your business requirements and subject areas, we analyze relevant data sets, for example by identifying interfaces and data pools. In addition, we conduct structured interviews with your departments if relevant ESG data are missing or need to be qualitatively determined.
Relevant ESG data consists of environmental, social and corporate governance data, such as:
E - Environmental: Data on material & resource consumption, electricity & gas consumption, water consumption or kilometers driven on business trips
S - Social: Data on employment conditions, employee satisfaction, gender distribution and diversity in the company, employee development and training, supply chain and customer relations, or health care and employee safety
G - Governance: Data on corporate structure & governance, possible compliance and conduct regulations, description of risk management.
3
Implementation and analysis
All data is merged into data models to create so-called ESG key performance indicators (KPIs) that meet any requirements. Afterward, we analyze the data to identify together with you trends, risks and opportunities for your company. Our goal is to work with you to implement ESG dashboards in industry-standard BI tools, such as Microsoft PowerBI or Qlik Sense.
Our approach for your ESG reporting is strongly influenced by the "Self Service" idea. Therefore, we want to create a data basis together with you, so that you can independently include new data in your ESG reporting in the future and gain the ability to adapt your reports and dashboards for new requirements.
We suppport you in this!
ESG-Reporting for your company
We support you in achieving your sustainability goals and fulfilling your ESG reporting obligations. Our approach to your ESG reporting is strongly influenced by the "self-service" idea. Our goal is to work with you to create a data foundation that will allow you to independently add new data to your ESG reporting in the future, as well as the ability to customize your reports and dashboards for future needs.
briefly and concisely answered
Basic ESG-Reporting questions
First, it allows you to be transparent about your company’s sustainability performance in environmental, social and governance terms. This allows you to show investors, customers and other steakholders that your company is committed to sustainability and thinks long-term. In doing so, you strengthen confidence in your company for the future.
Second, ESG reporting helps your company identify and assess potential risks and opportunities related to sustainability. This can help improve your company’s risk management and capitalize on opportunities for sustainable value creation.
Third, ESG Reporting is increasingly required by law, especially in the EU. Audit-ready ESG reporting will become mandatory for many companies from 2025, and failure to meet this obligation will inevitably lead to severe fines and potentially a loss of image for your company.
It is important to note that the exact approach to ESG reporting can vary by company and industry. Conducting ESG reporting is a structured process that involves several steps:
1. Identify relevant ESG factors: companies must first identify which ESG factors are relevant to them. These include environmental factors such as greenhouse gas emissions, water consumption and waste management; social factors such as employee satisfaction, working conditions and human rights and governance factors such as board composition, anti-corruption policies and compliance.
2. Data collection and analysis: Companies must then collect data pertaining to relevant ESG factors. This data can be sourced internally or externally. Subsequently, this data is analyzed to identify trends, risks and opportunities.
3. Reporting: based on the data analysis, an ESG report is prepared to provide a detailed account of the company’s ESG performance. The report should also include targets and performance indicators that the company can use to monitor its ESG performance in the future. At TIQ Solutions, we support you in ESG report creation by creating appropriate dashboards for you based on the analysis you have previously done.
4. Continuous improvement: ESG reporting must be performed regularly under the new EU regulations to track changes in the company’s ESG performance. Companies should also take steps to improve their ESG performance in order to achieve their sustainability goals.
If your company does not have sufficient staff capacity and technical capabilities to provide relevant data for ESG reporting, there are several options:
1. Expert support from TIQ Solutions: We help you identify and collect relevant data while taking regulatory requirements into account. Based on our many years of experience in the areas of data management and data quality management, we support your departments in extracting relevant information even from Excel files or paper invoices and, if necessary, implement tools and processes to automate this process.
2. Focus on essential factors: If collecting data for all ESG factors is too time-consuming, you can focus on the key factors that are most relevant to your company and your stakeholders. This allows you to target your resources more effectively and still produce meaningful ESG reports.
3. Collaborate with suppliers: You can also consider collaborating with your suppliers, for example, to analyze supply chains and collect important ESG data. This is especially relevant for environmental data, because often external data about the entire supply chain can be relevant here.
It is important to note that ESG reporting is a process and it takes time and effort to implement an effective ESG reporting system. However, it is also a valuable investment in your company’s future, as it can help improve your company’s sustainability performance and maintain the trust of your customers as well as stakeholders. We would be happy to support you on parts or all of your ESG reporting journey.