ESG Reporting and Sustainability Controlling are new tasks in controlling. However, the synergies between “classic” controlling tasks and the management of sustainability initiatives in the company are quite large. Since Performance Management is already anchored in many companies, ESG Controlling and Reporting can both be covered by flexible systems at the same time.
There are efforts worldwide to reduce environmental impact and requirements to disclose sustainability initiatives.
However, there is no uniform format. The European Union has gone one step further and requires “green reports” in accordance with CSRD (Corporate Sustainability Reporting Directive) for many companies operating in the EU. Information on the corporate and risk strategy, as well as the taxonomy conformity of ESG actions are mandatory.
For now, EU reporting only affects large, capital market oriented and publicly traded companies, but soon the action plan will be expanded to reduce net greenhouse gas emissions to zero by 2050.
Active management and optimization of sustainability initiatives and transparent sustainability reporting in a single system reduce effort and costs, and thus simplify legally compliant reporting.
The entire topic area of sustainability does not seem self-explanatory at first glance, and without an integrated data platform, managing the sustainability portfolio is quite challenging. In addition, there are the new legal reporting requirements, e.g. EUT reporting forms that one has to be aware of. To simplify all these processes and to increase transparency, Performance Management & BI systems have best proven to cover Sustainability Management Tasks as well.
The smartPM Sustainability Controlling and Reporting Solution was developed precisely for this purpose. It is filled with predefined model content and logics to not only support the strategic selection, provide active control and transparent reporting of ESG initiatives according to EU taxonomy specifications, but also comply to other international standards in the form of templates. All sustainability data is in one system (Single Point of Truth) and is used for monitoring and optimization of sustainability projects. Materiality analysis, kick point overview (see Figure 1), top-down vs. bottom-up planning, reporting templates, user authorization concepts, the integration of EUT reporting forms and much more, all facilitate Sustainability Management from planning to reporting. Optionally, the system can also be linked to the integrated financial planning system, simulating the impact of scenarios (Environment, Social, Government) on company results and KPIs. You can read further details on this in the Whitepaper: “4 Simple Steps to Actively control Corporate SUSTAINABILITY”.
What module contents and functions does the fully integrated smartPM Sustainability Controlling System cover?
- All data sources are seamlessly linked with standard connectors – a Single Point of Truth
- Full transparency for all parties responsible – authorization concepts
- Supports the strategic selection of a green portfolio through materiality and scenario analyses
- Simplifies and accelerates the planning of ESG initiatives (top-down/bottom-up)
- Supports setting and tracking of initiatives in case of planning gaps incl. assignment of responsibilities and role concepts
- Flexibly adaptable KPIs – KPI Dashboards
- Continuous monitoring and optimization of ESG Key Performance Indicators in the kick point overview
- Progress and investment information at your fingertips at all times
- Possibility of storing training material directly in the system
- If desired: connection to integrated financial planning systems and other departmental plans, scenario comparisons with possible impact on company results or KPIs
- Optimal Management Support – an instrument for active control
Does the smartPM Sustainability Controlling module also support all common Sustainability Reporting frameworks?
- Yes, it supports standardized and automated Sustainability Reporting according to EUT (CSRD), SDG, GRI requirements (templates)
- The reports are optimized for external audits
- It integrates EUT reporting forms with direct data access to the system
- Stakeholder-tailored automated reports and distribution lists save time
- It supports automated integration and documentation
- It enables comprehensive Sustainability Reporting for companies and corporations
Want to learn more? Learn more in the Whitepaper or talk to one of our experienced professionals for EU Taxonomy and Sustainability/ESG Controlling. Book the expert talk here and you can then also take a look at the live system right away >>