Sustainability Analytics: ESG Reporting, Planning & Steering

Regulatory frameworks such as CSRD and the EU taxonomy mean that more and more companies have no option but to implement ESG reporting (Environmental, Social & Governance).

In the financial sector in particular, there are additional regulations and requirements, such as the Disclosure Regulation (SFDR), the European ESG Template and MiFID II.

Driven by Regulatory Requirements or a Self-Developed Initiative

Many companies have set themselves important goals on their own initiative and want to achieve their own climate neutrality (“Net Zero”) by 2050, for example. Other companies are being forced to act by EU regulatory requirements such as the Taxonomy Regulation, the Disclosure Regulation (SFDR), the Corporate Sustainability Reporting Directive (CSRD), or even the implementation of these via IDD or MiFID II.

We know both the path to the goals that result from independent initiative and the implementation of the EU ESG requirements with SAP Analytics. That is why, with our expertise in SAP Analytics (SAP BW/4HANA, SAP HANA, SAP Analytics Cloud and SAP BusinessObjects), we are an important partner for our clients and together we are already implementing various sustainability projects.

Environ­mental

Evaluation of investments based on ecological aspects:

  • Environmental protection
  • Reduction of greenhouse gas emissions
  • Environmentally friendly production
  • Investment in renewable energies
  • Efficient use of energy and raw materials

Social

Social
(Social)

Evaluation of investments based on social aspects:
  • Compliance with occupational safety & labour laws
  • Health protection
  • Diversity, equal opportunities and social engagement
  • Product liability & product responsibility

Governance

Governance
(Governance)

Evaluation of investments based on corporate governance:
  • Management and control processes
  • Transparent measures to prevent corruption & bribery
  • Anchoring sustainability management at board and supervisory board level
  • Linking executive board remuneration to the achievement of sustainability goals
  • Dealing with whistleblowing

Moreover, consumer interests, brand positioning, in-house or industry initiatives in the area of sustainability are also bringing this new perspective to more and more reporting departments – whether they already exist or have been created specifically for this purpose. Where this has not yet happened, it will often become relevant starting with the financial year 2025. This date marks the start of the CSRD scope to also include non-listed, larger companies.

The need for sustainable ESG reporting and ESG steering solutions is increasing

The EU and consumers are therefore sending a clear signal: sustainability disclosures are here to stay. This also means that there is a need for IT solutions that:

  • support reporting adequately and effectively,
  • can be optimally integrated into the existing system and reporting landscape and
  • in the medium term not only enable a retrospective view, but also offer control options.

This is how successful ESG reporting works

Despite the relatively new topic, we at BIG.Cube have already proven that we are a reliable and strong partner in ESG reporting, both through our professional know-how as a bridge builder to IT and through our technical expertise: From the professional orientation phase to the Business Analysis and technical conceptual design of new data models through to implementation and productive support, or even specifically for selected subareas.

From our experience, we know how complex, exceptional and volatile regulatory requirements in the area of ESG reporting can be. This is precisely where we create the essential added value for successful projects with our flexible and tried-and-tested, agile BIG.Cube project approach. We rely on industry and technical expertise as well as best practice approaches in data modelling for ESG reporting requirements to ensure the success of the project:

Business Concept

Business Concept:

We support you in the initial orientation with regard to the requirements for ESG reporting in the company through our long-term expertise in this area. Our experience will provide you with significant support in developing a target vision for ESG reporting that is customised to your needs based on first analysis results, like a materiality analysis, or the integration of ESG reporting into your company.

Solution Design

Solution Design:

An initial technical analysis creates an initial solution design, customised to your needs, system landscapes and processes. Here we apply our years of project and line experience in ESG reporting.

Business Analysis

Business Analysis:

Based on the rough business concept, we move on to the detailed analysis and seamlessly bridge the often crucial gap between business and technical implementation.

Technical Conception

Technical Conception:

When creating a detailed technical concept for your ESG solution, we take into account proven best practice approaches as well as crucial details that are still largely unknown in this field. Our aim is to develop a sustainable, expandable and holistic ESG reporting. This can only be achieved with the necessary expert knowledge of ESG data and requirements.

Implemen-tation

Implementation:

Thanks to our expertise in SAP Analytics, SAP HANA and SAP BTP, we are a strong partner in the implementation of your ESG reporting in SAP Analytics - from data connection to the ESG KPI dashboard. We also have the knowledge to deal with other ESG solutions, such as the Sustainability Control Tower, and can offer you an optimal consulting service.

Data Quality

Data Quality:

Together we achieve more than just ex-post transparency on your ESG data in reporting. With our Q-THOR software, you can identify possible misalignments at an early stage and well before the actual ESG Reporting and can initiate measures in good time. This way, you ensure the best possible "quality at source" and save considerable costs and time in the reporting process.

The way to your automated ESG reporting

No matter how advanced you already are in the topic of ESG Reporting, we are happy to support you and adapt our services to your requirements and needs.

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Use Case: Financial Services

A Sustainable Approach

One of the most complex examples of ESG reporting is the financial services sector due to its very comprehensive scope.

Experience has clearly shown that it is beneficial to initially bring the various source data together in one place. Due to the need for auditability, we recommend a technology with high traceability and the implementation of data quality assurance.

The next step involves matching the data to the respective asset or issuer, in parallel with a harmonisation ans standardisation of the data to create a central ESG layer. This processed, high-quality data and the calculated KPIs can and should be provided to the entire company for various purposes as a single point of truth.

In previous & current projects in SAP systems, the focus here is on requirements:

  • Regulation (EU) 2020/852 Taxonomy Regulation
  • Directive (EU) 2022/2464 as regards corporate sustainability reporting
  • Regulation (EU) 2019/2088 Disclosure Regulation and the resulting EET, e.g.
  • Directive 2014/65/EU on Markets in Financial Instruments (MiFID II)
  • Internal group initiatives or even voluntary reporting initiatives such as AOA, SASB etc.

Objectives of ESG Repor­ting

The goals of the ESG KPI calculations are very diverse: deliveries via existing interfaces to Group reporting, standardised reports or Self-Service ESG Dashboards can be counted among them. Data products are also provided in the “data as a service” concept to other downstream systems, e.g. for active sustainability controlling & steering purposes.