In our previous post, we covered the current and upcoming sustainability regulations with which many companies are required to comply. Those regulations include the EU Taxonomy, the Non-Financial Reporting Directive (NFRD), the Corporate Sustainability Reporting Directive (CSRD), and the Sustainable Finance Disclosure Regulation (SFDR).
In Focus
One of the main challenges faced in this space is the need to access data from a multitude of sources, and to turn this data into meaningful KPIs based on which the right decisions can be made. Given the breadth of topics covered under ESG, data from many different sources is required. To turn this data into valuable insights, we will then need to apply various calculations and then present the information in an understandable way.
To answer this challenge, we recommend utilizing a solution called SAP PaPM (Profitability and Performance Management).
On Task
Data Acquisition
SAP PaPM allows users to acquire data required for ESG Reporting and Management from all relevant systems such as ERP systems, HR systems, travel systems, asset management systems, and supplier-management platforms. It allows you to automate data acquisition, making each step of the data acquisition process transparent so that it becomes traceable and auditable
Calculation Models
The solution comes with predefined calculations (examples include the Leontief model for the upstream impact, application of carbon emissions factors, allocation of emissions to product level, deriving GHG scope, etc) that you can use out of the box. At the same time, it is an open platform so that business users or subject matter experts can change, extend, adapt and update calculation models on demand to address the dynamic nature of the requirements introduced by regulation and disclosure updates.
Reporting
Reporting can either be handled within SAP PaPM, or you can integrate with SAP or 3rd party reporting and disclosure management systems.
msg global is ready to help you move forwards; and we can even look for synergies in the area of profitability and cost allocations at the same time!
You’ll have to be ready soon. We’re ready right now.
