09/26/2024 | News release | Distributed by Public on 09/26/2024 02:01
This client is a U.S.-based, publicly traded multinational professional services company.
The client sought to enhance trust and confidence in its ESG data and collection process and needed to complete an annual report and prepare for the European Union's Corporate Sustainability Reporting Directive.
Assessed nearly 300 ESG metrics with 200+ data owners to develop improved ESG reporting; performed a double materiality assessment to identify relevant ESG issues; recommended and procured software to streamline organizational reporting; implemented change management to raise corporate awareness for ESG data owners.
Prepared the client to successfully meet its commitments to 2026 CSRD reporting; improved the client's Carbon Disclosure Project score one grade level; and continued services for implementation of new ESG software.
As a multinational professional services company based in the U.S., this client, like many we work with, was concerned about meeting the rapidly approaching requirements of the European Union's Corporate Sustainability Reporting Directive (CSRD). This regulation requires "all large companies and all listed companies (except listed micro-enterprises) to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment." Disclosure will begin in 2026 using data from FY2025. Overall, the client was seeking to enhance trust and confidence in its ESG data and collection processes. The company's senior leaders realized they needed a better understanding of the CSRD and how the regulation would impact its global business.
Protiviti was engaged to help the client tackle several ESG data and technology projects. Partnering with the company's executive vice president of ESG and DEI, along with the senior director of ESG, we categorized the challenges into three cross-functional buckets: the ESG reporting process, ESG data and toolsets, and CSRD readiness.
Because ESG initiatives touch so many aspects of the business (there are close to 300 ESG metrics in the client's annual ESG report), there were hundreds of data owners involved in ESG reporting, from real estate, to operations, legal, HR, finance, and more. Our work included:
The CSRD reporting pathway clients select now is a critical factor in how their future data collection and reporting platforms will develop. As mentioned, organizations may currently plan to report on an entity, EU consolidated, or enterprise level. However, by 2029, all firms will have to report on the enterprise level using FY2028 data, so if another mechanism is selected now, the company will eventually need to shift. Because of this, many clients, including this one, are electing to begin now with enterprise-level reporting.
As with many clients taking a deep dive into reporting processes and tools, we were able to identify and resolve several gaps for this company. Specifically, we:
In addition to the immediate improvements the client saw in its ESG data collection and reporting, the company's Carbon Disclosure Project (CDP) score improved one grade level, partially because of this work, which was viewed as a significant win. The CDP, which provides a snapshot of environmental disclosure and performance, demonstrates the trajectory of an organization's environmental journey. Companies that receive a B have demonstrated they are addressing the environmental impacts of the business and have a good level of transparency in reporting.
We were also able to help the client become more comfortable with its new data collection and reporting tool, and its new workflow processes and assure that its platform now accurately gathers and reflects the work the organization is doing to support global sustainability. This initiative will continue as the client grows and matures its ESG reporting efforts. "Protiviti has been by our side, advocating for our team and helping navigate complex projects, significantly upleveling internal audit results in ESG data, ESG software selection, and EU/CSRD readiness," said the client's EVP of ESG and DEI. "No matter which MD and team we are working with, we reach our goals together, working to build something better and stronger than where we started."
200+
ESG metrics reviewed
200+
Internal ESG data stakeholders interviewed
33%
Reduction in natural gas emissions
20%
Reduction in refrigerant emissions