The Importance of Developing Accurate Automated Reporting Systems for ESG

In recent years, Environmental, Social and Governance (ESG) criteria have undeniably taken a higher priority in business. In fact, the Wall Street Journal’s annual survey of sustainability officials found that 63% of organizations were already disclosing ESG information in 2023, compared to 56% the year before. To this end, developing an automated ESG reporting system becomes critical for companies to align with modified regulatory requirements, especially with significant changes in the global regulatory environment.

Recent Government-Backed Legislation on ESG Reporting

As part of the European Green Deal, the EU established a framework for transparent ESG reporting, known as the Sustainable Finance Disclosure Regulation. It guides how organizations report their sustainability figures to investors, consumers and stakeholders. Doing so allows these entities to gauge the organization’s sustainability performance and impact on people and the environment.

Several years later, the EU introduced the Corporate Sustainability Reporting Directive (CSRD) in January 2023 to strengthen and improve the existing system. The CSRD focuses on ensuring investors and stakeholders have access to information needed to assess an organization’s impact on the environment and people within that environment and the risks and opportunities that may be associated with the company due to climate change and other sustainability issues.

Read the full article here.

Learn how EPAM takes a comprehensive, proactive approach to compliance as a code, which encompasses all the areas of risk, compliance and governance within the full systems development lifecycle—helping to integrate DRM into the entire Business IT ecosystem: https://www.epam.com/services/cybersecurity/digital-risk-management