As concerns about environmental and social issues continue to grow, the importance of corporate sustainability reporting has also increased. Companies are under increasing pressure to demonstrate their commitment to sustainability and to provide transparent and accurate information about their environmental and social impacts.
To address this need, the European Union has introduced the Corporate Sustainability Reporting Directive, which aims to improve the quality and comparability of sustainability reporting by companies. The Directive applies to large public-interest entities, including listed companies, banks, and insurance companies, and requires them to report on a range of sustainability indicators, including environmental, social, and governance (ESG) performance.
The Corporate Sustainability Reporting Directive is having a significant impact on reporting practices across the EU. Companies are now required to report on a wide range of sustainability indicators, which can be a complex and time-consuming process. This has led to an increased demand for specialised software and services to help companies manage and analyse their sustainability data.
One key aspect of the Directive is the emphasis on standardisation and comparability. The Directive requires companies to use standardised reporting frameworks, such as the Global Reporting Initiative (GRI) or the International Integrated Reporting Council (IIRC), which helps to ensure that sustainability reports are consistent and comparable across different sectors and countries.
In addition to the Directive, many companies are also being influenced by investor and consumer demand for sustainability information. As more stakeholders recognise the importance of ESG issues, companies are under pressure to provide transparent and accurate information about their environmental and social impacts.
Overall, the Corporate Sustainability Reporting Directive is having a major impact on reporting practices across the EU. By improving the quality and comparability of sustainability reporting, it is helping companies to better understand and manage their impacts and to build trust with their stakeholders.
The need for Digital Transformation
One way that companies can streamline their reporting processes and improve the accuracy and transparency of their sustainability reports is by embracing digital transformation. By leveraging the power of technology, companies can improve their data management and analysis capabilities, streamline their reporting processes, and easily share information with stakeholders.
The increasing complexity of reporting means that data needs to be drawn from many disparate sources, different systems and in different formats - so-called unstructured data; and in some cases, sustainability reporting systems which currently don’t even exist.
Corporate Performance Management (CPM) tools, like OneStream, come with built-in data integration capabilities that allow users to connect to various data sources, extract relevant information, and bring it together in a single, unified platform. This can help organisations gain a more comprehensive view of their financial data and make better informed decisions.
Additionally, OneStream's data governance and security features ensure that the data being collected is accurate, consistent, and compliant with relevant regulations and standards.
One key benefit of leveraging a unified reporting platform is the ability to quickly and easily access and analyse the data from multiple sources in a centralised data repository. By creating a single source of truth for reporting, it becomes easier to identify trends and patterns that may not be immediately apparent using traditional methods, and make more informed decisions about their sustainability efforts.
Furthermore, OneStream‘s Analytic Blend capabilities intelligently bring together CPM, Financial Analytics, BI, Operational, and other transaction-level data for comprehensive analysis and visualisation directly within one application.
This means that for extended reporting & regulatory requirements companies can:
Leverage a single platform for CPM/EPM, BI, Analytics, and Visualisation across finance, and other lines of business by eliminating fragmented tools and substantially reducing Total Cost of Ownership (TCO).
Integrate Financial and Operational Data by capturing, mapping, and loading millions of rows of data from external sources (ERP, CRM, Data Hubs, etc.) for improved speed of reporting and analysis.
Eliminate the need to export data from CPM applications to BI tools causing data latency and loss of control.
Increase speed to value with self-service dashboards and reports
Achieve complete transparency and audit trails from summary visualisation down to detailed transactions and sources of all data.
By introducing intelligent automation in the reporting processes the risk of manual errors can dramatically be reduced, whilst the use of Artificial Intelligence (AI) can help accelerate the reporting process, allowing for more time to be spent on insights and value-add activities.
Finance must act now
With the ever increasing data requirements for regulatory reporting and compliance, it is vital to use the right software to collect, manage and analyse data in order to ensure that reports are accurate and up-to-date, and that they meet the requirements of the Corporate Sustainability Reporting Directive and other reporting frameworks.
PRYZM's team of experienced professionals have a deep understanding of the various regulatory frameworks and reporting requirements that organisations must adhere to. We use this knowledge to develop customised solutions that enable clients to efficiently and accurately collect, organise, and report on the data required by these regulations.