The EU is introducing significant sustainability regulations, laws, and disclosure requirements in the coming years. If your organisation is just starting its sustainability or ESG reporting efforts, here are some recommendations, further reading materials, and suggested actions to take:
Materiality assessment
Before beginning to collect data or draft your first sustainability report, it is important to conduct a materiality assessment to identify the most significant sustainability issues for your organization. This assessment can be based on market data, stakeholder interviews, and surveys, and should help determine your sustainability goals, targets, and priorities. The materiality assessment will also help guide the process of collecting and reporting information for the ESRS and compliance with the CSRD. For example, a healthcare company might prioritize healthcare access, affordability, innovation, and supply chain sustainability, while a technology company might focus on data privacy and security, and STEM education access. A bank might prioritise financial inclusion. It is important to choose and prioritize sustainability themes that align with your organisation's mission, industry, business model, and ESG maturity
Data systems and process
To accurately report on your organisation's sustainability performance, it is essential to know what that performance is. Your materiality assessment can help you identify the main sustainability themes to focus on and collect data for. Consider what sources contribute significantly to your organisation's carbon footprint, such as employee travel, facilities, or manufacturing sites. Determine where this data is currently stored and how it can be accessed or collected. While it is possible to start with basic spreadsheet, survey, and document tools for sustainability reporting, larger or more complex organisations may need specialised software like the kind offered by the Mitigate to manage data and maintain ESG compliance. It is also important to plan for ongoing report archiving, version control, and governance, as you will be reporting annually.