Corporate Sustainability gets more and more important to companies. Not only for internal governance purposes but also in regard to the external representation of corporations. With the Corporate Sustainability Reporting Directive (CSRD), there will also be a new standard in place, replacing the old Non-Financial Reporting Directive (NFRD).
NFRD didn’t provide any standards on how information should be disclosed. However, CSRD does so, making it necessary to collect the required information for such reports in a standardized way. Moreover, it will be quite difficult for companies to get information from counterparts in different jurisdictions, not facing the requirements to disclose this information. Therefore, information will often be collected from all subsidiaries using Excel templates.
With colea, required data for CSRD reporting can be collected in a structured way and consolidated on group level.
An international group acting in more than 50 countries around the world will have quite some work to collect the required information using MS Excel or Sharepoint.
What to collect?
The first set of CSRD standards will be published in October 2022. But as an example, let’s look at a few typical environmental KPIs and how a distributed company could collect them with colea.
KPIs to collect on a yearly basis:
Heating energy usage
Share of hybrid/e-cars in carpool
Copy paper consumption per employee
Share of recycled copy paper
How to build?
In order to start collecting the KPIs of this use case on a regular basis, a new collection needs to be generated and configured. As those KPIs need to be reported on entity level, each subsidiary would be set up as reporting unit and one or more users can be allocated in order to fill out the data.
In order to define the KPIs to be collected, a simple Matrix widget can be used. The relevant KPIs can be imported or setup directly in colea by adding new rows/columns to the Matrix widget. To keep it simple for this example, the following information (per KPI) shall be collected:
Source of this information (drop-down)
Goal for the upcoming year (number)
The choices for a drop-down can be configured by defining a new list. This makes it easy to adopt them at any time.
Once the configuration of the data model is finished, the submission status of the collection can be set to open. Doing so, will send out an email (including a link) to all configured users of the respective reporting units and users can start submit data.
How it looks like for your users
The only thing the receiver needs to do is to open the link and fill in the required information before he/she submits the data.
The central unit can watch submissions come in and start analyzing the data immediately using their preferred analysis tool (e.g. Power BI, Tableau, Excel etc.).