1. What types of data management technology are available for ESG reporting?
- Enterprise Performance Management (EPM) Systems and Business Intelligence (BI) Tools: EPM systems like SAP Analytics Cloud, Pigment, Jedox, and TM1/IBM Planning Analytics and BI tools such as Microsoft Power BI offer robust capabilities for integrating emissions data into existing reporting processes. These tools allow for incremental capacity building and can support the development of predictive models alongside traditional finance, workforce and supply-chain models.
- Extending transactional ERPs and Finance systems:, ERP/Finance platforms like Xero for SMBs and SAP Sustainability Footprint Management
- Dedicated ESG Platforms: Platforms like Datamaran, Plan A, Persefoni, Sustainalytics, and SASB Navigator focus specifically on ESG data management and reporting.
2. How do these data management technologies facilitate ESG reporting?
- Data Integration: These technologies integrate data from various sources, including financial systems, sustainability metrics, and external ESG databases like emissions factors, to provide a comprehensive view of ESG performance.
- Reporting Templates: They offer pre-built or customisable reporting templates designed specifically for ESG metrics, making it easier to generate accurate and consistent reports. They can be updated with the latest disclosure standards.
- Analytics Capabilities: Advanced analytics features allow organisations to analyse ESG data trends, identify risks and opportunities, and make data-driven decisions to improve sustainability performance.
3. Can you provide an example of how EPM systems and BI tools support ESG reporting?
- Example: SAP Analytics Cloud integrates financial and ESG data, enabling organizations to create unified reports that include both financial metrics and sustainability KPIs. Users can analyse ESG performance alongside financial performance to understand the impact of sustainability initiatives on overall business outcomes.
- Similarly, Microsoft Power BI offers visualisation capabilities that allow organizations to create interactive dashboards and reports for ESG metrics. Users can track key sustainability indicators, such as carbon emissions, diversity metrics, and community engagement data, in real-time.
- Many tools can include models, blueprints or accelerators to get you started.
4. How do dedicated ESG platforms contribute to ESG reporting?
- Example: Datamaran provides a comprehensive ESG management platform that helps organizations identify, monitor, and manage ESG risks and opportunities. It offers automated data collection, benchmarking, and scenario analysis tools to support informed decision-making and stakeholder engagement in sustainability reporting.
- Cloud-based platforms like Plan A, and Persefoni offer specialized tools for emissions reporting. These platforms incorporate emissions factors and best practices, providing subject matter expertise and standard disclosure formats. However, they may operate at a corporate rather than operational level, and integration with existing financial and management reporting processes may require additional effort.
5. What are the advantages of using transactional and cloud-based carbon accounting platforms for ESG reporting?
- Example: ERP/Finance platforms like Xero for SMBs and SAP Sustainability Footprint Management enable organisations to capture emissions data at a transactional level, allowing seamless integration with financial accounts. However, these platforms may have limitations in supporting scenario planning and what-if analysis for ESG reporting purposes.
