Unfortunately, there is no simple solution to this question, but we would be happy to engage in a dialogue with companies that want to make the choice easier and find the right solution.
In the future, larger Danish and European companies will experience extensive changes in their reporting requirements. The EU has decided to tighten the requirements for companies' sustainability reporting as part of the European Green Deal. This means that from the financial year 2024 all large companies will be obligated to report on their work with sustainable transition.
The requirements will not only cover the companies' own activities, but also their entire value chain, including detailed information on consumption and emissions. Listed companies and companies with over 250 employees will be directly affected by these new requirements, which will come into effect from the financial year after January1st, 2024. Although small and medium-sized companies will not be directly affected by the new legal requirements, they will still be indirectly impacted as large companies will require information from their subcontractors, including SMEs.
The requirements for ESG reporting affect how companies handle data, and there are many questions how to best tackle this task.
At N3O, we want to help you as much as possible, as this area is complex, and there are no easy solutions. This also includes identifying the best IT solutions for reporting. It is important to understand that there is no single IT solution that can solve the task immediately.
ESG reporting is simply too complex, and companies vary in both size and ESG profile. Furthermore, the market for IT solutions is constantly evolving, so the best solutions today maybe different in a year.
Before you can start discussing with potential IT providers in a constructive manner, it is important that you establish the needs your company has in relation to an ESG IT solution. Therefore, you should research and clarify what requirements you should have for an IT system before entering the market.
It is important to have a thorough understanding of your company as the first step: What is its size? What is the number of divisions and offices around the world? Should all these units report? What languages should the system be able to support? How is the company structured, and is it necessary for all levels to be able to report? What industry do you work in, and what does the value chain look like? Do you have plans to expand into new markets in the near future? What ESG areas do you prioritize? Is there an opportunity to digitize your work processes? Where are your data currently stored, and how do you collect them? What does your current IT infrastructure look like? And finally, which resources do you have available to implement a new IT system?
Next, you should also clarify which requirements you have for the IT solution. For example, does the system need to be able to collect data both internally and externally? Handle data sharing and cooperation between users? Verify data? Generate reports? Provide data for benchmarking? Consolidate and analyze data?
The conclusion must be that it can all seem overwhelming, and after several discussions with companies, we at N3O also conclude that many different IT solutions that can be used, but none that enbrace the entire process.
Therefore, we gladly invite companies to engage in dialogue or workshops where we may, together, find solutions that can be integrated with your existing reporting program.