ESG Reporting compliance is mandatory in 2024, here’s how you can prepare your organization with an integrated FP&A solution

The pressing points from Dresner's recent study on ESG reporting

Dresner Advisory Services conducted a survey in late 2023 to discover the current state of ESG reporting, among organizations of all sizes and geographies, as well as listing some of the impending changes to reporting compliance.

Their report lays out what's to come, why many organizations may be under-prepared, and why this compliance needs action sooner rather than later.

Key findings from Dresner's ESG market study

Currently, ESG reporting is highest in Europe, the Middle East, and Asia (EMEA) at 45%, while it remains at its lowest (23%) in North American (NA) organizations.

But ESG reporting is only done by 32% of organizations, with an additional 18% considering it. This means that more than 50% of organizations, of varying sizes, are likely unprepared for coming reporting regulations.

Additionally, 75% of respondents state they don't even know what standards are in use or likely to be used.

Responses suggest cross-functionality is paramount and enterprise performance management (EPM) capabilities are an enabler for ESG reporting, with the CFO and finance team taking most of the responsibility for ESG reporting.

What's clear in the report is that many organizations are unprepared, and in the worst cases unaware, of the impending standards that will be put in place. Those without any plan of action could come under a lot of stress.

Why an integrated FP&A solution is necessary

ESG reporting is challenging, with monitoring and tracking of non-financial data being paramount - It's clear that an integrated financial solution is the key.

With a Cloud-based FP&A system, organizations can easily conform to ESG reporting requirements as they will occur in the future and benefit from reporting capabilities in other areas.

Alternately, a financial function that has siloed data from outdated legacy systems will struggle to meet the complex requirements for compliance standards to be satisfied.

Even those organizations with a digital financial function are still lagging with static reporting tools rather than the proactive management functionality that an ERP suiteprovides.

In other words, a cross-functional response from an organization is required to satisfy all elements of ESG reporting standards. This requires a financial function that is succinctly integrated with other non-finance departments to meet ESG reporting standards with confidence.

Learn how Unit4 can provide the ESG reporting solution for you

Dresner ranked Unit4 as the 3rd highest vendor, out of 10 surveyed, due to its ERP cross-functionality and integrated FP&A solution. As a result, Unit4 excelled in the ESG reporting category of Dresner's 2023 Technology Innovation Awards.

With Unit4 reporting can be much easier and more succinct by compiling data across all departments and offices. Unit4 FP&Ais a comprehensive software solution designed to assist organizations in collecting, analyzing, and reporting their Environmental, Social, and Governance (ESG) data.

Learn more about how this powerful planning and analysistool enables organizations to monitor their sustainability performance, support compliance with statutory reporting requirements, and make more informed decisions to drive positive environmental and social impacts.

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