RegTech Ideagen, which provides software for high-compliance and regulated industries, will launch a new ESG tool to help their customers tackle greenwashing.
According to FinTech Finance, the functionality, believed to be the first of its kind, allows auditors to highlight and then separate non-financial disclosure requirements – commonly referred to as ‘ESG reporting’ from the Financial Reporting Standard, enabling firms to start the financial year with a better understanding of what they need to be compliant.
Ideagen Senior Technical Accountant Tina Whitington said, “Audit firms are constantly looking to provide increased value to their clients, particularly around ESG which can be a minefield for many.
“The UK is ahead in many respects, as it requires companies to report against ESG, but there’s no one single piece of legislation, it’s enshrined within no fewer than seven UK and EU laws, such as UK Corporate Governance Code 2018, the Companies Act 2006, the Listing Rules and the Disclosure Guidance and Transparency Rules.
“And to add extra complexity, the people responsible for collating the data are usually compliance or sustainability managers who sit outside the finance or audit teams.
“Ideagen Pentana software has always enabled auditors to tailor based on company size, also whether they’re listed or not-for-profit, which then presents you with a checklist of the regulatory reporting requirements specific to that entity type.
“However, this new development allows an audit firm to separate the non-financial disclosures and provide a bespoke summary of what is required with the specific legislation for reference if needed.”
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