Data Reliability for ESG Reporting
Ensuring the accuracy and reliability of the ESG-related end-to-end processes and data
Introduction of ESG performance management
To create real value, companies need to implement an ESG performance management, including the definition of KPIs, ESG reporting, and management approaches for ESG KPIs. Only by successfully integrating ecomomic, environmental and social performance into strategic decision making, a company can gain a competitive advantage.
Today, there are many tools available to help companies collect the required data and generate reports based on ESG standards (e.g., SAP Sustainability Control Tower). However, in order to rely on the data and reportngs generated by these tools, the accuracy and reliability of ESG-related end-to-end processes and data must be ensured. This requires implementing and verifying the effectiveness of appropriate IT General Controls and IT Application Controls.
Effects of IT Controls
IT Controls are conducted at the application, operating system, and database levels for:
- Access Management
- Change Management
- Security Configuration
- API-/Job-Monitoring
- Authorization concepts including test support and implementation
The IT Controls ensure the integrity of programs, data files, and computer operations. They are designed to fulfill all requirements regarding confidentiality, integrity, and availability of data. Without effective IT Controls, it may not be possible to rely on ESG IT systems. IT Application Controls (ITAC) refer to transaction processing controls that ensure complete and accurate processing of data from input through output.
Control catalog for nonfinancial reporting
- Related to NFRD, CSRD, EU Taxonomy (etc.)
- Inclusion of catalog in ICS
Governance, risk and compliance tools provide a holistic approach to managing an organization's risk and compliance requirements by integrating governance, risk management, and compliance management activities into a single platform. It is important to cover all relevant (SAP and non-SAP) source systems, from on-premise to Software-as-a-Service (SaaS), as shown in figure two:
Depending on the deployment model, the responsibilities of the customer and the respective service provider(s) vary, and therefore do the related tasks.
Our services
In particular, our services are designed to ensure:
- A strengthened ESG-control environment
- Transparency
- Data quality & data reliance
- Process and controls formalized and documented
- Reasonable assurance on a broader set of ESG disclosures determined by the regulators
- Governance and accountability clearly defined
The aim of our services is to ensure the accuracy & reliability of ESG-related end-to-end processes and data to maintain an effective internal control system over sustainable business activities and reporting acknowledging the COSO-ICSR Supplemental Guidance (see COSO-ICSR-Report). For more information, please contact our team at any time.
