Improving ESG Reporting with Established Industry Standards –

By neub9
3 Min Read

In today’s fast-paced corporate environment, Environmental, Social, and Governance (ESG) reporting has become a crucial aspect for organizations looking to showcase their dedication to sustainability and ethical business practices while also complying with an expanding set of regulations. As companies navigate the complexities of ESG reporting, they are increasingly seeking guidance on how to efficiently manage and disclose ESG-related information. However, with the rising demand for credible, externally assured ESG disclosures, the challenge of effective data management emerges.

Fortunately, well-established industry standards offer valuable frameworks that can help streamline ESG reporting processes and improve data quality. The EDM Council’s DCAM data management best practices and the Committee of Sponsoring Organizations of the Treadway Commission (COSO) guidance for ICSR serve as essential tools in this regard. By leveraging these frameworks, companies can enhance their ESG reporting practices and align with existing tools and knowledge.

The collaboration of the EDM Council’s ESG Working Group resulted in the development of a practical “Playbook for Effective ESG and Sustainability Data Management” aimed at guiding companies towards leveraging existing tools and knowledge to achieve quality ESG data and disclosures. By mapping 14 key ESG data challenges to industry-recognized frameworks, the Group aims to provide a roadmap for data professionals and report preparers.

The convergence of COSO’s ICSR framework and DCAM offers a robust platform for addressing the challenges of ESG data management and reporting. These frameworks provide a foundation for organizations to navigate the complexities of ESG reporting and ensure the reliability of their disclosures. By adopting these best practices, companies can accelerate their sustainability journey and facilitate collaboration across departments involved in ESG reporting.

The Playbook outlines actionable recommendations for companies to address specific challenges in ESG data management, such as data materiality, accountability, ownership, and reporting requirements. By following the principles of COSO’s ICIF framework for ICSR and EDM Council’s DCAM, companies can bridge the gap between financial reporting and sustainable practices, ultimately driving innovation and transparency in the corporate landscape.

As we move towards a more sustainable future, the power of effective ESG data management will continue to play a crucial role in driving positive change. By adopting industry-standard frameworks and practices, organizations can not only meet regulatory requirements but also unlock new opportunities for growth and value creation in a rapidly evolving business environment.

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