ESG Reporting

ESG – revolution in sustainability reporting

The CSRD introduces guidelines for sustainability reporting. It requires certain companies to submit annual reports that address the company’s impact on:

• environmental (E),
• social (S),
• governance (G).

WHEN?

The implementation of CSRD in companies will take place in three stages:

• 1st January 2024 – for companies already covered by the Non-Financial Reporting Directive (reporting in 2025 for the financial year 2024). These companies report so-called non-financial information under the Accounting Act,
• 1st January 2025 – for large companies not currently subject to the Non-Financial Reporting Directive (reporting in 2026 for the financial year 2025) meeting two of the three requirements:
  • with more than 250 employees and/or
  • having a turnover of €40 million and/or
  • having €20 million in total assets,
• 1st January 2026 for listed SMEs, small credit institutions and in-house insurance companies (reporting in 2027 for the financial year 2026). SMEs may delay the start of reporting until 2028. In such cases, however, the entity shall explain concisely in its management report why sustainability reporting has not been provided.

WHY?

Reporting on the NFRD was insufficient. Companies were putting a lot of emphasis on marketing strategy when preparing their ESG report. The new guidelines will reliably show whether a company is developing in a sustainable manner. The CSDR introduces ESRS standards so that data in sustainability reports will be comparable.

Process automation thanks to BSB application

BSB offers a solution that is designed to comprehensively support the preparation of a sustainability report.

The main functional areas are:

• calculating the carbon footprint – implemented in all 3 scopes, i.e. both direct emissions, internal indirect emissions and emissions related to the institution’s suppliers and customers (scope 3). The system provides integration with external databases providing values for the indicators needed to calculate the carbon footprint,
• support for data collection – provided by managing distributed responsibility for inputting and accepting data for calculating indicators. The system supports the collection of data at different frequencies with different granularity due to the organisational structure and provides data aggregation and automatic calculation of indicators,
• analysis and reporting – flexible tools for analysing the collected data enable graphical analysis of changes over time, trends, causes of deviations and the places and people responsible for achieving a specific carbon footprint or indicator values in other ESG aspects. This applies to both positive and negative deviations. An important function of the system is also the preparation of data for external reporting,
• correction mechanisms – to put in place and manage actions to optimise, correct or reinforce changes in the value of indicators,
• assessment of suppliers – functionality to collect data on carbon footprint and other ESG aspects related to suppliers and the products they provide.

An important element of the ESG system is to ensure compliance with ESRS standards. The solution offered by the BSB is supported by the consultation with our partner: Bureau Veritas Polska Sp. z o.o. As a result, you will obtain not only streamlining tools, but also confirmation of the correctness of the entire ESG management process.

We encourage you to make use of our services and support in reporting.