Data Accuracy and Completeness in ESG Reporting.
The world of sustainability reporting is quickly maturing and the EU is leading the way. European lawmakers have realized that in order for the EU to reach carbon neutrality by 2050, the key players in the business world will all need to do their part.
New challenge ahead
By now it should be clear that the Corporate Sustainability Reporting Directive (CSRD) and EU Sustainability Reporting Standards (ESRS) will prove to be a worthy challenge for Europe-based companies in the coming years, which will need to understand and report their key metrics, set targets based on those metrics and write, revise and implement policies related to environmental, social and governance matters. This is all to continually demonstrate that European companies are doing their part to enable a sustainable future.
The value of a sustainability report is only as good as the accuracy and quality of the underlying data. At Klappir, we know this too well from years of experience at helping our customers in Iceland succeed in collecting, organizing and reporting their ESG data.
Importance of accurate data
It’s easy to picture how inaccurate data can lead to inaccurate conclusions and decisions, and at the end of the day this can harm a company and its stakeholders. Accurate and reliable data on the other hand can give companies confidence and a competitive advantage against their peers.
Reliable industrial benchmarking of ESG data has been difficult due to a lack of conformity in how and what companies have chosen to report. This will change with the adaptation of the CSRD and ESRS. Companies that want to compare their performance against their competitors or against industry standards need to be able to trust that their own data is reliable and complete.
Reporting according to the ESRS is not a one-off task for organizations, but a continuous process and long term endeavor. Companies will track their progress, revisit and redefine their targets and need to demonstrate that they are making real, tangible progress. Accurate and reliable data will prove essential for measuring progress, identifying trends, and making informed decisions about future actions.
Our customers already know that the best way to collect complete and accurate data from their vendors and other stakeholders is through our public APIs, accumulated into our tried and trusted Sustainability Platform and utilizing the most relevant coefficients. This sort of data collection should be the cornerstone of your compliance and put you in the best position to succeed in the short and long term.