How to Best Prepare for ESG Disclosure

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It is increasingly important for companies to demonstrate their sustainability readiness. In September 2023, KPMG, one of the top global audit and advisory firms, published the first Environmental, Social and Corporate Governance (ESG) Assurance Maturity Index. This index offers guidance on how to navigate the growing landscape of ESG reporting and compliance. Not only is regulatory compliance a major consideration, but stakeholders also expect companies to show their commitment to ESG principles.  

The ESG Assurance Maturity Index highlights the biggest challenges companies face in achieving ESG preparedness – namely, data collection and cohesive management. Comprehensive and accurate data collection is essential for identifying company strengths and areas of improvement for the benefit of the company itself, as well as for potential investors and stakeholders. Although the process of attaining ESG preparedness presents its fair share of challenges, Capaccio can assist in ESG data disclosure with the EHS-Dashboard, which centralizes data collection and management for long-term resilience and growth opportunities.  

Below, we break down the ESG Assurance Maturity Index and how Capaccio’s EHS-Dashboard™ can help your company achieve ESG data assurance.  

ESG Assurance Maturity Index 

The Assurance Maturity Index was designed by surveying board members and senior executives at 750 companies spanning various industries. The Index assesses companies on a scale of 0 to 100 by evaluating their performance across five pillars: governance, skills, data management, digital technology, and value chain. Based on their performance, companies are categorized as Beginner, Advancer, or Leader, indicating their level of ESG reporting preparedness.  

According to the survey, 66% of companies report ESG data or will be required to soon, but only 25% of companies feel that they have effective ESG policies and systems already in place. Many companies attribute these challenges to disorganized data collection, as they rely on multiple systems to collect data across all ESG metrics. The survey found that the primary obstacles companies encountered in establishing ESG preparedness include a lack of clear metrics, insufficient digital solutions, and inadequate measurement of supplier ESG performance.  

Moving Forward: Capaccio’s EHS-Dashboard™

The Assurance Maturity Index indicates that many companies require a solution capable of identifying and establishing target metrics, gathering accurate data, and ensuring long-term data integrity. KPMG proposes five steps for enhancing ESG assurance: 

  1. Determine applicable ESG reporting standards 
  2. Build robust ESG governance and develop the right skills 
  3. Identify the applicable ESG disclosures and data requirements 
  4. Digitize ESG data processes and ensure high quality data 
  5. Work with the value chain to collect ESG information  

Initially, these steps may appear to demand significant time and effort. However, Capaccio can help your business simplify this process and facilitate the efficient development of long-lasting ESG assurance.  

Beginning with a materiality assessment, Capaccio evaluates your company’s current practices and identifies targets and metrics that align with your company’s ESG goals and industry standards.  

To track your company’s performance across these ESG metrics, Capaccio’s highly customizable EHS-Dashboardserves as a one-stop solution for data collection and management. The system includes a built-in regulatory compliance matrix and the EHS-Dashboard™ calendar, ensuring your team remains informed of critical compliance deadlines through automated alerts.  

By digitizing data processes with the EHS-Dashboard, your company can improve organization and accuracy with one central database. The EHS-DashboardTM can function as a stand-alone system or seamlessly integrate with your existing systems, creating a cohesive, customized solution that eliminates the need for multiple disparate data management technologies.  

As ESG reporting becomes more comprehensive, the EHS-Dashboard™ can support your company in tracking data across multiple locations and the entire value chain. For example, the new, currently voluntary ISSB reporting standards require participating companies to disclose Scope 1, 2, and 3 emissions. The EHS-Dashboard™ monitors all three types of emissions, enabling your company to not only meet current reporting standards, but also prepare for upcoming reporting requirements.  

EHS-Dashboard™ and Auditing 

The EHS-Dashboard enables your company to adopt a proactive approach to the auditing process. The system automatically logs an audit trail for all ESG metrics, simplifying enterprise-level ESG reporting. With built-in tracking and notifications, the EHS-Dashboard™ aids your business in identifying potential issues and taking preemptive action before problems arise. 

Moreover, the system streamlines reporting for businesses of varying sizes, whether operating from a single site or on a global scale. The EHS-Dashboard provides your company with a comprehensive enterprise-wide perspective of operations, enabling the most informed decision-making.  

Closing Thoughts 

KPMG’s ESG Assurance Maturity Index highlights how ESG reporting and disclosure poses a significant challenge for businesses at present. Data collection and management, while considered one of the most challenging aspects to ESG assurance, is simplified with Capaccio’s EHS-Dashboard™. Designed with over 30 years of EHS expertise, the EHS-Dashboard™ streamlines the reporting and auditing processes, serving as a comprehensive solution for data management and analysis. Schedule a demo today and discover how the EHS-Dashboard™ can help your business achieve enterprise-wide ESG assurance.