In the ever-evolving realm of corporate sustainability, European entities are presently grappling with the intricacies of the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS).
This legislative framework mandates EU-based companies to meticulously adhere to the guidelines set forth by the European Financial Reporting Advisory Group (EFRAG), a task that demands comprehensive understanding and strategic implementation.
Amidst this regulatory challenge, Position Green emerges as a beacon of innovation, offering a software solution meticulously crafted for ESRS adherence. The ESG software company recently offered a guide on how its technology can help ease the double materiality assessments under the ESRS regulation.
Its is enriched with the expertise of seasoned sustainability advisors, providing users with a sophisticated tool to navigate the complexities of compliance. Felicia Gustafson, leading Group Product Management, alongside Olivia Krall, a veteran Manager and Sustainability Advisor, provide invaluable insights into the strategic considerations that underpin the software’s development.
At the heart of Position Green’s offering is the double materiality assessment functionality, a pivotal element for ESRS triumph. This feature facilitates companies in accurately documenting their sustainability concerns and reporting requirements, ensuring a streamlined and effective reporting process. The software not only aids in the initial identification of material disclosures but also supports the integration of these findings into the company’s reporting framework, setting the stage for a hassle-free assurance process and subsequent adjustments.
The methodology behind the software’s double materiality assessment is a testament to Position Green’s meticulous approach. Adhering to the standards outlined in ESRS 1 and EFRAG’s guidelines, the software ensures compliance through mandatory and optional input fields, the latter of which offers alternatives based on the advisors’ profound expertise and industry best practices.
The software’s impact materiality scoring system is rooted in established frameworks and principles, evaluating the severity of sustainability impacts based on scale, scope, remediability, and likelihood. This nuanced approach enables companies to gauge the significance of their sustainability impacts with precision.
Parallelly, the financial materiality scoring methodology embedded within the software draws from ESRS stipulations and Position Green’s advisory acumen, focusing on the financial ramifications of sustainability efforts. This dual assessment framework equips companies with a robust tool for comprehensive sustainability reporting.
Position Green’s software stands as a certified solution for companies striving to align with ESRS requirements, its development guided by EFRAG’s published guidelines. The double materiality assessment module, in particular, offers a streamlined path to compliance, complemented by functionalities for disclosure reporting and sustainability statements.
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