Diligent Launches Board Reporting For ESG

Diligent Launches Board Reporting For ESG

Amid an evolving ESG regulatory environment, the CSRD and upcoming SEC climate disclosure requirements are pushing boards and senior executives to be accountable for and knowledgeable of their firms’ ESG performance and progress. This requires turning an overwhelming amount of ESG data into executive-level performance analytics. Verdantix expects a growing number of organizations to turn to software for assistance. In fact, Verdantix calculates that the ESG reporting software market will be worth over $4.34 billion by 2027 (Market Size And Forecast: ESG Reporting Software Solutions 2021-2017 (Global)).

Presenting ESG data in a clear and compelling manner to the board is challenging. To drive organizations forward, executives need to focus their efforts on strategic decision-making rather than deciphering complex ESG information. Therefore, it is imperative to equip practitioners with the right tools to share the most critical insights to Chief Sustainability Officers or CEOs, who are responsible for implementing sustainability strategies.

In response to demand for streamlined board-level ESG reporting, SaaS provider Diligent launched Board Reporting for ESG in May 2023. Key features include:

• Board-ready reporting dashboards designed to provide insight into the relationship between corporate performance and stakeholder perception on sustainability and ESG.
• Progress measurements against carbon targets, ESG scores from ClarityAI and S&P Global for peer benchmark disclosures, and Scope 1, 2 and 3 emissions.
• Best practices and training materials on presenting to the board.

However, according to a Verdantix global ESG survey, 34% of the 400 firms interviewed still rely on spreadsheets to collect, manage and report data. Such a manual process can leave organizations vulnerable to risks such as reputational damage and litigation. For example, in May 2022 the US SEC fined BNY Mellon’s investment advisor division $1.5 million for misstating and omitting information about ESG investment consideration for mutuals funds it managed. Moreover, firms within the scope of the EU’s CSRD and SEC’s climate disclosure rule will need to obtain assurance of sustainability disclosures (see Verdantix Buyer’s Guide: ESG Assurance Services (2022)). We can expect to see the role of ESG controllers rise in significance, as well as greater integration between ESG and GRC processes with board oversight to clearly identify and define accountability structures for controlled data governance, which are essential to reduce ESG risks.

To learn more about ESG solutions, read the following reports:

Strategic Focus: The Future Of ESG And GRC

Best Practices: Creating An RFP For ESG Reporting And Data Management Software

Strategic Focus: Organization And The Rise Of ESG