With this year’s European sustainability reporting season now behind us, ESG reporting platform Position Green has looked into the key data trends and challenges facing firms.
Platform Onboarding Director Petter Olson noted that the sustainability reporting field is rapidly transforming in conjunction with the rise in demand. The driving forces of the transformation is the rising interest in sustainable finance and new investor demands. Olson stated these factors are shaping how sustainability data is being treated and managed.
Sustainability reporting has changed from being primarily ‘open to interpretation’ to a much more transparent and standardised approach. As a result, firms are looking at what and how they must report so they meet compliance. The Position Green ESG software provides surveys and standard measure templates to support this.
One of the current trends Olson has noted is that businesses are incorporating more levels of documentation to support their data collection. He stated that they might include supporting documentation alongside the reported figures, such as Energy Attribute Certificates, EPDs and invoices.
There is also a greater awareness of the various methodologies and principles that are used within, such as the GHG Protocol – Corporate Standard.
He added, “Companies that use the Four Eyes Principle or Internal Review approach, in which data is controlled and verified by a sustainability controller, are also increasing the overall data accuracy. In response to this trend, we’ve introduced supporting features to facilitate this procedure in the platform.”
As for the material, Olson said many businesses have put time and effort into improving their Scope 3 data. “The expectation that Scope 3 may turn into a required disclosure under the ESRS is the reason for this.”
Other clear trends include switching to quarterly GHG reporting, broadening the scope of disclosures in line with GRI and adjusting to the GRI 1012 standard.
Olson concluded, “Some companies are starting at a basic level in terms of how the existing frameworks are interpreted and used. While the scope is expanding, it can be difficult to start doing things correctly. For many businesses, effective reporting practices and stakeholder engagement are key challenges. Because of this, even though the new reporting standards may not be directly applicable until the following year or later, it is crucial to start preparing your organisation now.”
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