Position Green recently took the chance to explain how firms can set a structure for sustainability reporting in their organisation.
In the journey towards achieving sound sustainability reporting, the pivotal step is identifying the responsible entities.
The CSRD demarcates this responsibility as lying with the organisation’s administrative, management and supervisory components. In simpler terms, this encompasses the board of directors, management, and, where relevant, the audit committee.
The distribution of reporting duties is paramount. Various organisations opt to induct a CSO for spearheading sustainability reporting activities. Some, on the other hand, entrust this crucial task to the CFO. Regardless of the designation, the expertise of the financial team in areas like reporting, risk evaluation, and its counteraction is a crucial asset for the organisation’s sustainability reporting agenda.
With the changing times, an upward trend is noticed where companies recognise the importance of having dedicated sustainability controllers. Their knowledge in reporting methods and sustainability norms makes them invaluable. This role often parallels that of the financial and business controllers existing in the finance department.
A sustainability controller’s responsibilities span across various domains, which include:
- Overseeing the assembly of the sustainability statement.
- Orchestrating the reporting process and in-house controls to curtail the chances of inaccuracies.
- Collaborating with external audit bodies or assurance service entities.
In gearing up for the ESRS assurance, a game-changer for organisations is the designation of a committed project manager. The mantle is usually shouldered by a sustainability or financial controller.
The project manager’s role is multi-dimensional, encompassing:
- Data stewardship: This involves ensuring data is systematically gathered, structured, and readied for assurance scrutiny.
- Timeline management: It’s imperative to establish, communicate, and adhere to timelines by the reporting brigade.
- Streamlining communication: Acting as the unique liaison for assurance providers.
The integration of the right individual for the project manager position will translate to an easing of pressure and a surge in operational efficiency across the organisation. Moreover, it paves the way for a streamlined assurance procedure.
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