Are you prepared to meet the CSRD requirements?
As per EU regulation, large and publicly listed companies are required to publish regular reports outlining the social and environmental risks they face and the effect of their operation on society and environment. This transparency enables investors, civil society organizations, consumers, and other stakeholders to assess companies' sustainability performance.
For businesses this means establishing company-wide processes to gather all quantitative and qualitative information, mandatory sustainability reporting standards and an obligatory audit. Companies reporting under CSRD have to conduct double materiality assessment to determine the most relevant sustainability matters for both the organization and its stakeholders.
CCH Tagetik supports companies through this journey by facilitating a pre-packaged solution for data collection and reporting, including upgrades of regulatory changes. The CSRD solution helps to disclose sustainability performance and highlights impact on financials. The process is fully auditable, providing robust support for your analysis.
CCH Tagetik ESG for CSRD Compliance & Reporting
Pre-configured solution
element61 co-implements CSRD solution with the customers, adapting to their specific business needs. The pre-configured CCH Tagetik ESG CSRD module incorporates the latest legislation and provides flexibility – allowing for both detailed elaboration and high-level summarization. CSRD modules offers a broad range of options:
- Activation of pre-defined KPIs and creation of custom KPIs
- Specification of detail levels per purpose and KPI
- Choice for multiple languages and descriptions
- Data entry files for data collection, differentiated by contributing partner
- Calculation of group-wide totals or subtotals of interest
- Standard CSRD reporting outcomes and space to self-service
All these steps come with a clear workflow to follow with built-in logic for approval and submission of data. The administrators take care of the settings, the contributors only report the data of their affiliates.
Double materiality assessment
To determine what sustainability matters are considered material, CSRD module includes pre-packaged double materiality assessment. It provides stakeholders with tools and questionnaires to gather relevant information. The impact analysis results in a complete materiality overview but it is still up to the ESG manager to choose which KPIs will be activated for reporting.
Settings and data structure preparations
The admin user can initiate the configuration by defining Conversion Factors, Exchange Rates, and Dictionary Elements. The solution includes a set of standard conversion factors that can be uploaded directly.
In the settings phase, one of the main tasks is to configure the STRUCTURE file per purpose. In this report two different tabs are available for –
- Pre-configured KPIs – This includes all KPIs required by a regulatory or reporting framework
- Custom KPIs – Customer can add their own relevant ESG indicators
Definition report is used to specify, for each KPI what level of detail must be collected and reported.
In the below example, you see the mandatory level Target Year for purpose Climate Change.
A declaration report is available to lock or unlock the editability of the data entry per purpose.
- Closed – Configuration done, it is possible to fill in the data in report
- Re-open – Data entry is blocked and STRUCTURE report is editable again
- Open – default status, data entry is blocked
To streamline data entry across multiple entities with similar requirements Entity Model report can be used. With the Entity Model, it is possible to define the main legal entity and the related entities that inherit similar data entry structure.
Data collection
his phase allows to generate or update data entry reports and fill in data. It is also possible to retrieve the data entry from previous scenario/period. It is also possible to use an Automatic Data upload for all data entry forms via preconfigured report that includes all the fields that should be reported in the input.
Pre-built standard reports that are part of the solution –
KPI's calculations
In this phase the KPIs are converted and calculated according to the parametrization provided by the framework. At this stage, all the amounts entered are aggregated/consolidated to a single GROUP legal entity.
Output reporting
CSRD modules also provides several pre-built ESRS_CSRD Output reports suggested by the Regulation. These reports are not mandatory but recommended by the Regulation. In addition to this there is a dedicated functionality to generate via custom built reports.
Here is a list of some reports that are already available in the CSRD solution:
ESG Discloure reporting with CCH Tagetik Intelligent Disclosure
The final step in ESG assessment is a streamlined and transparent reporting document for different stakeholders. CCH Tagetik Intelligent Disclosure answers this need with narrative reporting software that dynamically integrates financial, non-financial and ESG consolidated numbers into data-linked reports. Qualitative and quantitative input is brought together at the defined level of detail.
Go beyond compliance with enterprise-wide ESG management
Companies embracing ESG at a strategic level will want to oversee the projected impact of ESG initiatives and may include ESG in their strategic or annual planning. The application supports this approach, allowing to connect CSRD with financial planning.
element61 is Platinum Partner with CCH Tagetik, don't hesitate to contact us to showcase the impact of ESG activities to stakeholders with CCH Tagetik Intelligent Platform.