ESG Data & Reporting

The ESG landscape has evolved significantly over the past decade and so did data sources. Whether clients utilise MSCI or Sustainalytics, Bloomberg or Refinitiv there is no single data solution that can address all ESG data requirements and an element of manual intervention or orchestration is still required. The “EU Sustainable Finance Disclosure Regulation” and the “Securities and Exchange Commission (SEC) Climate Risk Reporting Guidelines” (in the US) are two of the important ESG reporting requirements that have recently been released.

Public companies and large multinational entities must ensure sufficient internal controls to obtain limited and reasonable assurance on non-financial ESG-reported data by 2024. Registered public accounting firms can provide either outsourced ESG internal audit services or ESG assurance services, but not both to avoid a conflict of interest. In addition, companies should engage environmental and diversity, equity, and inclusion consultants to develop an ESG strategy and a technology partner to provide an audit trail and data collection and management processes.

More than 90 percent of publicly traded companies voluntarily report in adherence to one or more ESG frameworks. Furthermore, companies can follow various frameworks and guidelines to ensure ESG compliance, such as the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI). In addition, many companies are now required by law to disclose their ESG practices and performance, such as in the European Union under the new ESG Disclosure Regulation (see SFDR).

By demonstrating ESG compliance, companies can build trust and credibility with investors, customers, and other stakeholders, which can help to attract investment, improve reputation, and drive long-term financial success.

Our consultant can help your organisation establish and roll out your ESG data and reporting.