Market Overview: Digital Sustainability Strategies To Transition From Voluntary To Mandatory Reporting
10 May, 2023
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Executive Summary
This report provides chief sustainability officers (CSOs) with the information they need to transition from voluntary reporting to mandatory environmental, social and governance (ESG) disclosures. The convergence of mounting regulatory pressures and heightened attention to ESG factors within the financial community will require firms to adopt digital sustainability strategies and adopt a proactive, long-term approach to sustainability management. This report outlines four digital strategies which firms can leverage to produce investor-grade disclosures and integrate sustainability into decision-making. Business leaders should use this report to assemble the necessary resources, workflows and technologies to navigate these challenges.
Upcoming Regulations Will Require Firms To Rethink Their Existing Sustainability Strategies
Corporates Must Undergo An ESG Information Overhaul To Meet Intensifying Regulatory Demands
Firms Must Continue To Address Non-Regulatory Drivers That Shape And Inform The Regulatory Landscape
Blueprints For Effective Sustainability Reporting Are Emerging
Firms Will Adapt Their Processes To Refine The Reporting Journey
Technology Solutions Have Emerged To Streamline Mandatory Reporting Commitments
Key Considerations For ESG Software Selection
Digital Strategies For Investor-Grade Sustainability Disclosures
Firms Must understand How Their Sustainability Reporting Programme Aligns With Their Overall Business Strategy
Building Blocks For An ESG Information Architecture And Investor-Grade Data
Corporates Must Undergo An ESG Information Overhaul To Meet Intensifying Regulatory Demands
Firms Must Continue To Address Non-Regulatory Drivers That Shape And Inform The Regulatory Landscape
Blueprints For Effective Sustainability Reporting Are Emerging
Firms Will Adapt Their Processes To Refine The Reporting Journey
Technology Solutions Have Emerged To Streamline Mandatory Reporting Commitments
Key Considerations For ESG Software Selection
Digital Strategies For Investor-Grade Sustainability Disclosures
Firms Must understand How Their Sustainability Reporting Programme Aligns With Their Overall Business Strategy
Building Blocks For An ESG Information Architecture And Investor-Grade Data
Figure 1. Frameworks And Disclosure Rules Prompting Spend In 2023
Figure 2. Overview Of Disclosure Regulations
Figure 3. Regulation Timeline 2022-2028
Figure 4. Comparison Of Traditional vs Investor-Grade Sustainability Data
Figure 5. Commercial Software Categories
Figure 6. Firms’ Levels Of Commitment To Sustainability
Figure 7. Verdantix ESG Maturity Model
Figure 8. Four Digital Sustainability Deployment Strategies
Figure 2. Overview Of Disclosure Regulations
Figure 3. Regulation Timeline 2022-2028
Figure 4. Comparison Of Traditional vs Investor-Grade Sustainability Data
Figure 5. Commercial Software Categories
Figure 6. Firms’ Levels Of Commitment To Sustainability
Figure 7. Verdantix ESG Maturity Model
Figure 8. Four Digital Sustainability Deployment Strategies
Gro Intelligence, TSC.ai, Quentic, Ceridian, WeSpire, University of Chicago, Accuvio, XDI Systems, Refinitiv, Costco, Hult International Business School, alva, Alcumus, ESG Book, Task Force on Climate-related Financial Disclosures (TCFD), Kezzler, Greenomy, Giki, One Concern, EY, Greenly, ENGIE Impact, Assent, Kanarys, SoPact, Alaya, Novisto, BlackRock, CDP, JBS, Position Green, Makersite, KPMG, Visier, Workiva, OneStream, Lixo, European Financial Reporting Advisory Group (EFRAG), Diginex, Jupiter Intelligence, Bandwatch, Selflessly, NetBenefit, Jambo, DNV , Bloomberg, Recyda, EMpower, Global Reporting Initiative (GRI), Lizee, Stryker, WeSort.AI, Harvard University, PepsiCo, SINAI Technologies, Ulula, AXA, Selerant, SAI360, Oracle, Avetta, Evreka, Greyparrot, APlanet, ReverseLogix, Submittable, BuildESG, onHand, Euronext, RepRisk, OnProcess, Daato, Green Story, Schneider Electric, Recykal, Workday, One Click LCA, European Commission, Foodsteps, Maanch, DevonWay, thinkstep, Toxnot, Circular IQ, riskmethods, Metrio, Intelex, Intergovernmental Panel on Climate Change (IPCC), Neighbourly, Bright Funds, Circularise, OneTRust, Nokia, Loop, SAP, Sweep, Culture Amp, MetricStream, Sylvera, Qliktag, Cority, Risilience, Circul8, Morningstar, Novata, Deutscher Bundestag, Pulsely, ServiceNow, VelocityEHS, Equileap, ESG Playbook, SmartHead, IFRS Foundation, Achilles, GHGSat, IsoMetrix, Diligent, Cargill, Salesforce, Goldman Sachs Asset Management, Digimarc, Datamaran, Lattice, UL Solutions, Reporting 21, SimaPro, MESA Group, Sphera, Mars, Target, GRESB, Mighty Earth, Mondra, IBM, Topolytics, Enablon, NAVEX Global, Pawprint, Sustainability Accounting Standards Board (SASB), CarbonCloud, WayCarbon, Cuantix, Science Based Targets initiative (SBTi), ESG Trust, pulsESG, Circular, Clarity AI, Archer Integrated Risk Management, DWS, Cervest, Deutsche Bank, Planetly, Blendoor, Financial Stability Board (FSB), ethiXbase, Aviva Investors, Sourceful, iPoint-systems, Benevity, Matter, Persefoni, Measurabl, Diversio, US Securities and Exchange Commission (SEC), EcoVadis, Climate X, Socialsuite, VitalMetrics, MSCI, Klima, FigBytes, University of Trento, Watershed, Circulor, Fairown, Borealis, Source Intelligence, Higg, Conservice ESG, Sustira, International Integrated Reporting Council (IIRC), CLIMsystems, Climate TRACE, WorkBuzz, Benchmark ESG, Greenstone, 12Return, HSI, ProcessMAP, MarketPsych, NASDAQ
About the Authors
Luke Gowland
Senior Analyst
Luke is a Senior Analyst at Verdantix, specializing in ESG and sustainability reporting software and financial ESG. He advises both technology buyers and software vendor and s…
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Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a…
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