Preparing for ESG Compliancy
Achieving ESG compliancy also creates the possibility for any number of business advantages. However, the journey to ESG compliancy and new competitive opportunities includes a significant number of challenges.
Reporting requires clear metrics derived from the EU Taxonomy, which are mandatory to disclose in the management report. However, creating a database, developing data models, and creating metrics involve a chronological process of addressing various challenges arising from the interconnections and linkages between regulations and EU standards.
Every business will encounter their own unique set of challenges depending on their data and reporting maturity, business processes, and more. At the highest level, four major steps to ESG compliancy each present fundamental challenges all businesses must overcome.
- 1
Preparation of the carbon emission inventory according to the GHG
- 2
Derivation of carbon requirements and key figures according to the TCFD
- 3
Determining the carbon footprint according to the EU taxonomy
- 4
Expansion and reporting of risk indicators and management report in accordance with CSRD
Partner with an Expert
Each of the four steps outlined above involve complex, multi-step processes. If businesses try to achieve this on their own, the risk of wasting time, money, and resources runs quite high. Continue reading to learn how HSO deploys a combination of our own solutions with Microsoft technology to streamline this process.