ESG Disclosure in 2024 – Requirements and Solutions for ESG Reporting

ESG Disclosure – Sustainability Reporting in 2024

esg disclosure in 2024 requirements and solutions for esg reporting

We’re well into the second half of 2024, and ESG (Environmental, Social, and Governance) disclosure is more important than ever for businesses aiming to demonstrate transparency and sustainability.  

But… 

What does it take to prepare impactful ESG reports? 

What challenges are you likely to face in your sustainability efforts? 

Understanding and effectively implementing ESG reporting solutions will significantly impact your company’s reputation, risk management, and the bottom line. 

If you’re reading this article, you’re probably familiar with the three components of ESG: Environmental, Social and Governance, but here’s a quick recap: 

ESG

Environmental
Reporting

An organisation’s impact on the planet (products/ services, operations & supply chain) 

You need a solution that will allow you to measure & report Environmental metrics in real time to identify your ecological footprint and implement timely adjustments to minimise it. 

Social
Reporting

An organisation’s impact on society (both internally and externally) 

With the right approach to the Social part of ESG, you will foster a positive work culture, build stronger relationships with stakeholders, and contribute to societal well-being. 

Governance
Reporting

An organisation’s structure, leadership, and ethical practices. 

Focusing on the Governance regulations ensures transparency, accountability, and ethical decision-making, which are fundamental to sustainable business practices. 

ESG reporting is more complex than most people imagine it to be.  

For effective reports that create a value & impact on your organisation you need to: 

Is ESG Reporting Mandatory?

Although ESG disclosure is not required by law, multiple pieces of legislation have a significant impact on ESG. 

And since more and more organisations have decided to prioritise ESG reporting, you should also consider it if you don’t want to get left behind. 

Why? 

Stakeholder Focus on Sustainability

Stakeholders are increasingly scrutinising companies’ ESG performance.  

PWC research found that 83% of consumers think companies should be actively shaping ESG best practices and 86% of employees prefer to support or work for companies that care about the same issues they do.  

With ESG reporting, you can enhance your reputation, attract responsible investors, and strengthen relationships with customers, employees, and communities.  

Changing Regulatory Landscapes

Governments and regulatory bodies worldwide are implementing stricter ESG regulations.  

Since 2022 in Europe, US, Canada, Japan, and China have introduced new requirements aimed at improving the transparency and standardisation of ESG disclosures. 

Compliance with these regulations is crucial for you to avoid legal penalties and reputational damage.  

ESG reporting helps to proactively align with changing regulatory landscapes and stay ahead of the curve.  

Evolving Consumer Preferences

Today’s consumers are more conscious of the environmental and social impact of their purchases.  

According to PWC, 76% percent of consumers would discontinue relations with companies that treat employees, communities and the environment poorly.  

They favour brands that demonstrate ethical and sustainable practices.  

By integrating ESG reporting into your strategies, you can meet consumer expectations, boost customer loyalty, and gain a competitive edge.  

Operational Efficiency and Innovation

ESG reporting helps identify inefficiencies and opportunities for resource optimisation. 

By implementing sustainable practices, organisations can reduce waste, save costs, and enhance operational efficiency.  

It also fosters innovation by driving organisations to explore new technologies, processes, and business models that align with sustainability.  

Embracing sustainability enables companies to adapt to changing market dynamics and build resilience. 

ESG Reporting Solutions – What Should you Consider?

Beneficial as it is, doing ESG reporting the right way comes with challenges that might be difficult to overcome without specialised data and domain expertise.  

What are those challenges? 

ESG Data Management

Gathering and managing vast amounts of ESG data is complex and time-consuming. 

You need to streamline the ESG data management, analytics and insights delivery processes. 

And it must be scalable because your data is growing rapidly.  

Can this be done without complicated infrastructure, specialist software and an expensive data team?  

We certainly think so.   

ESG Benchmarking for Performance Measurement

Let’s say you managed to collect the right data, process it the right way and uncover some valuable insights into what’s going on within your organisation.  

Great! But what now?  

ESG is kind of useless if you don’t incorporate correct benchmarking 

Done right, it shows how your company ranks among others in your industry, how you’re performing period over period, and how stakeholders in that industry view your company.    

Measuring ESG performance and establishing meaningful benchmarks can be challenging due to the diverse nature of ESG factors.  

To assess your performance against industry-specific metrics, identify trends, and benchmark yourself against peers you need advanced analytics capabilities.  

And it’s costly and time-consuming to even start.  

Or is it?  

Addressing Stakeholder Expectations

Meeting the diverse expectations of stakeholders, such as investors, customers, employees, and communities, can be daunting.  

You need to gather and analyse stakeholder feedback, identify areas of improvement, and tailor your ESG strategies accordingly.  

The feedback data will come to you in various formats, from various sources.  

How do you make sense of this data to begin with? Let alone derive relevant insights to make necessary changes?  

You need unparalleled data expertise to do that. And, in a world where data talent is among the hardest to find, finding a talent who would specialise in both data and ESG reporting could be next to impossible.   

This barrier, as well as the ones above, can be easily removed with Datore’s Analytics as a Service – that provides people, technology and methodology to turn raw data into impactful ESG reports.  

ESG Reporting Solution – The Datore Way

Analytics as a Service can play a pivotal role in supporting an organisations’ ESG disclosure efforts.   

Here’s how AaaS can empower companies in their sustainability journey:  

Data Integration and Management

AaaS offers robust data integration and management, we help organisations streamline the collection, cleansing, and consolidation of ESG data. This ensures data accuracy, reduces manual effort, and facilitates seamless reporting.  

Advanced Analytics Capabilities

Our AaaS provides organisations with access to advanced analytics tools, leveraging technologies like artificial intelligence and machine learning. This enables organisations to derive actionable insights from complex ESG data, identify patterns, and make data-driven decisions.   

Scalability and Flexibility

AaaS provides scalable ESG reporting solutions, allowing organisations to handle large volumes of data efficiently. It offers flexibility in terms of resource allocation, enabling companies to adapt to changing reporting requirements and accommodate future growth.  

Access to Specialised Expertise

Datore’s AaaS provides access to a pool of analytics experts with the domain knowledge and technical skills necessary to interpret ESG data effectively. This expertise helps organisations navigate the complexities of ESG reporting and extract maximum value from their data. 

Conclusion - Requirements and Solutions for ESG Reporting

ESG reporting is not just a buzzword; it is becoming critical. Prioritising ESG reporting offers a multitude of benefits, ranging from enhanced transparency and reputation to cost savings and innovation.  

By leveraging Datore’s Analytics as a Service (AaaS), organisations can effectively address the challenges associated with ESG reporting and unlock the full potential of their sustainability initiatives – without needing to invest in complicated infrastructure, expensive software platforms or build a data team from the ground up.  

Let us help you seize the opportunity to integrate AaaS into your ESG reporting strategies, embrace sustainable practices, and contribute to a better future. Together, we can drive meaningful change, secure a competitive edge, and build a more sustainable and responsible world for generations to come. 

Is ESG reporting on your radar? Let's chat how you can make it easier and more efficient!

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Lewis Williams

Lewis Williams

Energy Data Specialist
Helping small & medium businesses harness their data like an enterprise - at a fraction of the cost with Analytics as a Service.

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