ESG REPORTING FAQs

Discover how we work with our clients to enable the highest quality, and most cost-effective, Environment, Social, and Governance (ESG) reporting solution available to SME, corporate, and not-for-profit clients. 1. What is the objective of the ESG PRO reporting service? ESG PRO enables clients to compile an ESG report to internationally accepted standards, and to receive a formal ESG rating. ESG ratings are similar to credit ratings, thus D is the lowest, then B, A CCC, BBB, AAA. Such ESG ratings represent key metrics for non-financial reporting (NFR), and they are repeated annually to coincide with the organisation’s annual financial reports. 2. How else is the ESG reporting evidenced? Clients who have completed their core ESG reporting may be issued with two certifications: ‘Sustainability Certified’ and ‘ESG Certified’. The appropriate logos are issued upon completion of your first report once the auditor has signed-off. 3. What are the regulations? Most listed companies must undertake ESG reporting, and the range of those in-scope is rising fast. For everyone, even charities and schools, ESG reporting helps to protects the organisation and its officers from enforcement actions by regulators such as the HMRC, ASA, FCA, and the CMA. In addition, there are significant national and pan-European reporting requirements forthcoming, specifically the Sustainable Reporting Directives (SRD) being drafted by both the U.K and the E.U. 4. We’re an SME, so why should we bother? First consider the entire supply chain: your key clients are increasingly likely to audit ESG performance, and even the smallest businesses are losing key customers as a result. If your organisation tenders for public projects or solicits funds, be aware that 10% of your tender response hinges upon your ESG rating. In this way, an ESG rating adds clear value to your organisation. ESG Reporting Frequently Asked Questions SALES FAQ 5. How does an ESG rating help the SME or Not-for-Profit? From raising investment to selling a business, your ESG rating is a key metric for banks, VCs and Angel Investors, all of whom are risk averse. Of equal importance is recognising that consumers are ESG/Sustainability aware. This isn’t a fad but is singularly the most important theme to strike business in the last century. OFTED is evaluating schools on their sustainability, consumers choose products accordingly, and even job candidates are declining opportunities where the employer appears to be lacking on environment, social, and governance. 6. Is ESG reporting a ‘pass/fail’ No, there is no pass or fail. Your rating is a statement as to your progress in reporting against the many ESG reporting frameworks (standards). There is no discredit to achieving only a ‘B’ rating, because the objective is to produce subsequent reports which demonstrate continuous improvement. 7. Which ESG reporting Frameworks do you support? ESG Frameworks are collections of internationally recognised standards. We support all 16 major Frameworks, including GRI, SASB, IIRC, EU NFRD, SFDR, and the CDP to cite just the most popular. 8. Frameworks are confusing. Where do we start? ESG PRO initiates your ESG reporting journey with the Global Reporting Institute (GRI) framework. Of the many standards within, our core objective is for your organisation to report against 12 GRI standards. These include such topics as energy, privacy, equal opportunities, management approach and more. Once you have satisfied these core criteria, we introduce the SASB standards as may be applicable to your organisation and the industry in which you operate. 9. How does the software work? To compile your ESG report, we use our ESG Enterprise software reporting tools. This is a multi-user AI-driven SaaS platform which enables our consultants to work with clients remotely to drive the data gathering from your stakeholders and various disclosing parties. 10. How many software-platform licenses do we need? You may deploy internal user licenses when we have completed your first ESG report. Until that stage, your consultant is loading your system and conducting the critical audits on your data. The ESG PRO approach saves you time because your staff don’t lose time in software deployment or learning how to use a new system. When your initial reporting and auditing is complete, you may take additional licenses for key stakeholders, such as Finance, HR, Compliance, H&S etc. 11. Who is using your reporting platform? Our reporting platform is used by more than 1,000 corporations globally, including such prestigious names as DOW, Facebook, Morgan Stanley, and the University of the Highlands. There are hundreds of smaller organisations too, from IT companies to charities, and especially small firms across the retail, hospitality and agriculture industries. 12. How long does the ESG reporting process take? ESG reporting is centred on continuous improvement, and it’s important to accept that this is not a tick-box exercise. For an SME if any size, with active participation, you should see you first ESG report within 90 days of commencement, with your initial ESG rating following within two weeks. To complete the core standards, most clients will need to invest a minimum of one to two days per month over the course of the first year. 13. How does remote consultancy work? Our consultants are based in the United Kingdom and Europe, and we service clients in multiple languages. Every client is assigned a dedicated ESG consultant who works with you from project inception. We engage with you via MS-Teams and Zoom. 14. I understand that ESG reporting requires many policies. How can you help? Most clients require the drafting of five bespoke company policies, as well as additional formal statements. We include the creation of these policies as standard, drafted according to the highest legal standards. They are customised for your organisation by our own in-house legal professionals. 15. What is my commitment? Our service is available on an annual basis. In Year One, we include ample consultancy days, and for years two and three (optional), our standard proposal is for the provision of software and support without the consultancy. You may purchase additional consultancy days as required. 16. We are conducting Carbon Reporting, so why do we need an ESG report? Your carbon reporting data is a key metric within the core ESG reporting frameworks. It’s importantand often mandatory, but if it sits outside of your ESG report you’re not gaining the full benefit. By incorporating into ESG, you’re able to use those data to add value to your organisation. 17. What about multi-nationals or ‘heavy industry’ etc. Can you support us? Yes, but you’ll probably require on-site monitoring systems, advanced SAP, Oracle, or major ERM integrations, as well as Big Data, climate risk modelling, etc. For such clients, we undertake a ullscope analysis with you to produce a bespoke approach using our on-premise Enterprise solution (POA). 18. How do we start our ESG reporting? Decide on whether you want a one-year or three-year contract, and we’ll do the rest. We’ll interview your team to determine the stakeholders, provide training and insight as to how to approach the disclosures, and we’ll guide you every step of the way