Corporations, investors, regulators, and standard setters worldwide are coalescing around the standardizing and digitizing of ESG and sustainability reporting. As the industry continues to mature and consolidate, how do companies take action to maximize the impact of their ESG and sustainability reporting to all stakeholders? How do investors maximize their insights and analyses from the ESG and sustainability disclosures reported by companies?
Align Reporting to the Numerous ESG Frameworks is Challenging
Many ESG frameworks exist, and not having one set of guidelines to follow, the legal status of ESG reporting differs depending on the industry, company type, and location – complicating the matter further. For companies scrambling to track and collect their ESG and sustainability data and eventually report and communicate to all stakeholders their performance along these dimensions, they need to be able to align their reporting to the numerous ESG and sustainability frameworks.
More specifically, for companies to communicate effectively to stakeholders, they also have to benchmark their ESG performance against the performance of peer companies. After all, according to a recent survey conducted by ERM, companies are spending, on average, $675,000 annually to prepare climate disclosures. With significant investment, companies want to optimize their ROI, effectively communicate to stakeholders and investors, and take control of their ESG and sustainability messaging.
idaciti ESG Framework Alignment Dashboard – Beyond Identifying Reporting Gaps
The idaciti team has decades of experience standardizing and digitally structuring financial and non-financial reports. We recently released the ESG Framework Alignment Dashboard, which harmonizes the major ESG and sustainability frameworks to surface which reported KPIs are aligned with a specific framework. This new Dashboard is critical since there are many ESG and sustainability reporting standards and frameworks (e.g., SASB, TCFD, GRI, CDP), and companies need to ensure that they can efficiently identify reporting gaps in alignment with specific standards/frameworks.
Company Coverage Report
More importantly, this Dashboard goes beyond just identifying reporting gaps. The benchmark and research functionality of the Dashboard enables companies and their consultants to quickly identify examples of how to close that reporting gap by serving up valuable peer companies' reports and presentations - with one click of a button.
Peer Group Comparison Report
Users of the Dashboard can 'like' the good disclosure examples, share the sample disclosures to communicate, and collaborate with other team members to quickly converge on closing the reporting gaps. Finally, with intense scrutiny on, and potential assurance of, the quality of ESG data and disclosures, having full traceability and transparency for each data point to the source location is essential. idaciti can provide this critical capability because of our unique approach to digitally structuring and standardizing the ESG and sustainability disclosures.
Peer Group Reporting Details and Traceback Report
While we wait with great excitement and anticipation as stakeholders worldwide continue to work together to reach that pinnacle of standardized and digitally structured ESG data in the, hopefully, near future. Our solution helps form that bridge between the future and the present.