Automated ESG reporting

ESG reporting is a defined obligation for many companies. Additional resources cannot and should not be allocated for this purpose.

This requires a structured data warehouse with intelligent integration of relevant data sources to enable automated report generation.

Challenges

52%
of companies have not yet developed a reliable KPI system for ESG reporting

4%
of companies have established automated ESG reporting

82%
of companies subject to ESG reporting requirements aim to implement automated ESG reporting

"Automated ESG reporting"

1. ESG reporting (Environmental, Social, and Governance) is also gaining increasing relevance among mid-sized companies. Legal requirements have defined specific timelines for companies of different sizes. Regardless of these regulations, many companies recognize the advantages of early positioning and positive communication on the topic—presenting themselves as sustainable and responsible businesses from the outset.
2. The requirements need to be specified in more detail, especially when internationally operating companies must meet different standards across various countries and regions.
3. The data sources are diverse. Data must be painstakingly compiled from various internal and external sources. Within the company, multiple departments need to collaborate in the data collection process. It is also essential to define a single point of truth.
4. There are systematic differences in data quality and granularity. Verifying the accuracy, completeness, and reliability of the data is time-consuming and complex.
5. Reporting must be automated, correct, and comprehensive—without the need for additional staff resources. Transparency and auditability are key, as external auditors may review the reports if required.

Solution approach

1. Recording of company processes in collaboration with the stakeholders. Subsequent evaluation and comparison with target processes, followed by the identification of optimization needs. Ensuring that standardization and harmonization are sufficiently implemented to create a data foundation that is fully usable for reporting purposes.
2. Development and definition of structures, processes, definitions, and calculation logics. Effective digitalization of company processes, with a particular focus on implementation and employee acceptance of the new structures.
3. Establishment of a digitalized data room. Support in technology decisions and the selection of suitable software providers. Ensuring data availability within the digital data room as a foundation for reporting, business intelligence applications, data migrations, and as a launchpad for effective AI solutions.
4. Automation of reporting from the data room as the single source of truth. High transparency combined with clear and unambiguous KPIs.
5. Automated provision of KPIs for efficient ESG reporting.