The importance of sustainable business practices is growing rapidly, socially and legally.
Regulations surrounding ESG are evolving quickly, bringing with them extensive reporting requirements. Companies are increasingly being held accountable for the sustainability of their entire value chain, from suppliers to customers. However, ESG reporting presents significant challenges. But besides these challenges, it also brings different opportunities. Partner Tijmen Kwakkel and ESG Lead Marjolein Marx are here to share their insights on the biggest challenges in ESG reporting and their perspectives on how to navigate them.
Our experts in ESG
Marjolein Marx
ESG Lead
Tijmen Kwakkel
Partner
Why is it so crucial to start now with your sustainability reporting?
“The world is changing rapidly, and sustainability is no longer a luxury but a necessity. We see more and more companies in the market recognizing the value of ESG reporting as an integral part of their business strategy. Being at the forefront offers significant competitive advantages,” Marjolein explains.
“The sooner you start, the faster and more sustainable your growth will be. Besides that, it really forces you to look at the quality of your data, which can be used for other (optimization) opportunities as well. Understanding ESG criteria also helps companies better manage risks, from climate change to reputational damage,” she explains.
What do you see as the biggest challenges around ESG reporting?
“First of all, the impact and scope for most of the organizations is still unclear. That is due to the complexity, lack of standards and new requirements for reporting to comply to regulations,” Marjolein explains. “Secondly we see that data quality and availability is a big challenge, due to limited, poor or unstructured data. Many companies lack the systems to collect comprehensive and accurate ESG data and turn that into value. For example, measuring Scope 3 carbon emissions (indirect emissions from the supply chain) is complex and often incomplete.”
“We provide you with insights into your data and processes, offering a reusable solution & clean data that’s ready for reporting.”
What can Precedence do to guide you through these challenges?
“When diving into ESG reporting, it’s easy to lose sight of the bigger picture. Fortunately, we have that overview,” says Tijmen. “First, we can help you understand the impact on your organization by determining the scope and relevant data points. Next, we’ll assess your data availability and quality to ensure these data points are filled in the most effective and efficient way, preparing you for reporting. We provide you with insights into your data and processes, offering a reusable solution & clean data that’s ready for reporting. These insights will also add value to other objectives improving your competitive edge”
“Our quick scan provides a rapid assessment of what’s needed to get your ESG reporting ready and what is required to obtain the right data and underlying processes. This means our approach isn’t just the ‘standard’ focus on compliance, but a more sustainable one, centered on data and processes.”
