ESG reporting is becoming increasingly important for many companies, making it a major challenge for you and your finance team: How do you draw a transparent and meaningful picture of the company’s environmental and social performance? How do you collect the relevant ESG data efficiently and reliably? How do you ensure that your sustainability reporting strengthens investor confidence and meets legal requirements?
In this article, we outline some effective approaches that will help you improve the quality of your ESG reporting. Discover practical tips on how to overcome the often-overwhelming challenges of ESG reporting and turn them into a strategic advantage.
1. Carry out a double materiality assessment
When setting up ESG reporting, the challenges can feel daunting at first. Where do you start? Which ESG issues and data are particularly relevant for your company? This is where the double materiality assessment comes into play.
The double materiality assessment is a key element in aligning the sustainability strategy with set targets. It is used to find out which environmental, social and governance (ESG) issues are most important for a company and its stakeholders. This analysis sheds light on the key areas a company should prioritize to act responsibly in terms of economic, environmental, and social factors. Once this groundwork is in place, you also know which data is relevant for your reporting needs.
You can find out how to prepare for a double materiality assessment here.
2. As the CFO, take the lead for ESG reporting
CFOs have a key role to play in ESG reporting. Although other leaders and teams such as the CSR team have important contributions to make, it is the CFO who should be at the forefront of these efforts, guiding the organization toward its ESG goals. Here are the key reasons why:
