As the Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy gain momentum, companies are prioritising their ESG reporting strategy. Central to this strategy is the creation of a robust, cross-functional ESG reporting team, essential for seamless compliance and leveraging the report as a strategic tool for enhancing overall sustainability.
Regardless of the size of your organisation, it’s critical to assemble a team with a diverse range of profiles and departments. However, determining the exact composition of this team and the steps to assemble it can be challenging.
Greenomy, a provider of ESG and sustainability reporting software, recently explored the characteristics of a strong ESG reporting team, providing a guide to create the perfect team, and detailing the vital roles and responsibilities for its success.
Why a Cross-Functional ESG Reporting Team is Necessary The CSRD and EU Taxonomy, integral to the EU’s sustainable finance legislation, necessitate standardised ESG reporting. They require disclosure of extensive data, introducing new concepts like the European Sustainability Reporting Standards (ESRS) and Double Materiality. For investors and stakeholders, these standards ensure reliable and transparent data, but they also pose a significant challenge, making a competent ESG reporting team indispensable.
Essential Characteristics of a Robust ESG Reporting Team Successful ESG reporting requires a team with interdisciplinary expertise, data proficiency, analytical skills, effective communication, and a commitment to transparency. This collective skill set ensures comprehensive understanding and accurate reporting across various ESG facets.
Forming an Efficient ESG Reporting Team The process begins with defining your ESG goals and needs. Subsequently, roles and responsibilities are outlined, potential candidates identified, and comprehensive training provided. Ongoing support and guidance are crucial, given the evolving nature of ESG regulations.
Key Departments, Roles, and Responsibilities A well-rounded ESG reporting team involves multiple departments, each contributing unique insights:
- Corporate Reporting: Focuses on transparency and disclosure of operations and risks.
- Sustainability: Manages sustainability initiatives and accurate ESG activity reporting.
- Internal Audit: Assesses ESG maturity and ensures robust governance.
- Supply Chain Management: Provides crucial upstream and downstream information.
- Legal and Compliance: Ensures accuracy and regulation compliance in ESG disclosures.
- Finance: Manages financial information related to ESG performance.
- Human Resources: Reports on social and governance aspects.
- Environment, Health, & Safety (EHS): Offers data on environmental impact and sustainability.
- IT and Data Teams: Manages and processes ESG-related data.
- Marketing and Investor Relations: Enhances sustainability communication and aligns efforts with investor expectations.
Challenges in ESG Team Creation Common challenges include resource constraints, aligning ESG goals with business strategies, and the need for continuous education and skill development.
Forming a strong ESG reporting team is crucial for aligning with frameworks like the CSRD and EU Taxonomy. Greenomy’s aim is to facilitate this process through AI-driven solutions, expert advisory, and comprehensive training, ensuring your reporting journey is efficient and effective.
Read the full in-depth report here.
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