Environment, Social and Corporate Governance (ESG) Reporting
ESG evaluates companies in a variety of different factors related to environmental impact, social conscience and corporate behavior. All companies struggle with evaluating these so ESG reporting approaches this from a standard based approach mandated by the the regulatory bodies.
ESG and CSR are very closely related. The key differentatior is that ESG is typically a rating and score system that’s provided by different audit and advisory firms. ESG therefore still requires consistent high quality data to calculate the score. Investors, employees and other stakeholders can use this ESG score to understand the impact the company has. This is further enhanced and governed by regulatory reporting requirements along with CSR.
The ideal situation is that you reuse your existing CSR reporting information and data for ESG scoring and rating. This is very possible as long as the data required is very similar which it typically is. This “two birds one stone” mentality is being applied globally via the standards of XBRL (and taxonomies) where the elements are reused.
What People Are Saying About ESG
ESG has been brewing for a while, and is hitting the mainstream now, driven by united demand from employees, investors and customers. All three groups seem to have shifted from a passive to an active stance and are forcing companies to step up against climate change and social injustice. As the pressure became explicit, companies responded with a shift in operating principles, proving again the power of the conscious consumer in today’s market.
In adopting ESG, each company chooses its own areas of focus and must document its contribution to these publicly, either ongoing or, at a minimum, as a part of their annual reporting. Transparency itself plays a vital role.
Why do certain investments perform better than others? Why do certain startups seem to always outperform and get ahead of the cohort? The answer has three letters, and it is ESG. Whether you are an investor or a company, big or small – Environmental, Social and Governance (ESG) reporting and investing, is the framework to catch on if you want to stay up to speed with the market (and your bill).
Do you already have the necessary CSR data and just need to input it, validate it and deliver it, then the SemansysNext Cloud/WebUI is right for you. With it, users can login to your secured cloud space and input the necessary reporting data and send it to the accounting/auditing company performing the rating all in one application in the cloud.
Do you already have existing systems within your enterprise which have CSR or ESG data? You can integrate those systems with SemansysNext via our APIs. This allows your users to stay within your existing applications and quickly and efficiently finish their processes (validation and delivery) for reporting via SemansysNext.