By Marek Chlebicki, partner PwC Poland Technology Risk Assurance

 

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Implementing ESG strategies and reporting on sustainable development present significant challenges for companies, especially those subject to the CSRD directive.

The good news is that thanks to technological tools and platforms, ESG reporting is becoming easier and more manageable. What challenges can technology help businesses with?

ESG strategy: foundation of a company’s sustainable development

An organisation’s ESG strategy is crucial element for meeting the requirements of the CSRD directive and in driving the sustainable development of the company.

New technologies, particularly cloud-based solutions, play a pivotal role in both implementing and managing ESG strategies. Beyond operational support for non-financial reporting in businesses, they also enable continuous monitoring and adaptation to the ever-evolving requirements and goals in the ESG area.

Data: a major challenge for companies

The CSRD directive demands source data of a quality comparable to that of financial statements. For companies, this is one of the most significant challenges – particularly in terms of data collection, quality, and management. According to the PwC Global CSRD Survey, the availability and quality of data pose the greatest difficulties for firms in meeting the directive’s requirements. In Europe, 59% of respondents identified data issues as a high or very high obstacle to reporting.

Fortunately, modern methods and tools for Data Governance and cloud-based data architectures can provide essential support. These solutions enable:

  • Identification of source data for ESG reporting
  • Mapping and cataloguing of both source and processed data used in reports (in reusable data formats)
  • Development and platformisation of ESG reporting data to ensure accessibility for dedicated reporting platforms and analytical tools

Thanks to these tools, companies can meet reporting requirements and ensure full data transparency for auditing purposes. This is particularly important since the CSRD directive obligates companies to certify their sustainability reports (including verifying the collected data). Moreover, the tools optimize processes and enable innovation based on ESG data analysis.

What tools are available for ESG data reporting?

Selecting the right tools for ESG reporting is essential for managing a company’s ESG performance and for monitoring and assessing the effectiveness of actions within the ESG strategy. When choosing a tool, it is important to ensure that it aligns with the company’s architecture and infrastructure and fits its nature and needs. It is also worth selecting solutions that are modern and easy to integrate.

Some examples of tools include:

  • Dedicated non-financial reporting modules built into existing financial platforms

Examples: SAP Sustainability Control Tower, Salesforce Net Zero Cloud

  • Comprehensive ESG reporting tools integrated within broader data platform architectures

Example: Microsoft Cloud for Sustainability

  • Specialised ESG reporting tools

Example: PwC CEE ESG Management Solution

Each of the platforms mentioned above facilitates efficient data collection, processing, and reporting in accordance with international ESG management standards. Additionally, they allow for advanced data analysis using machine learning and artificial intelligence models.

Advanced analytics and AI-powered cloud technologies are particularly critical in enabling organisations to identify areas for improvement, support the implementation of effective corrective measures, and make strategic decisions. These capabilities ensure companies can meet compliance requirements while enhancing their overall ESG performance and sustainability initiatives.