How CFOs Can Help Meet Corporate ESG Goals: SAP Concur and Deloitte’s Whitepaper

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  • CFOs must lead in ESG by understanding regulations, managing data, and leveraging technology.
  • Effective ESG reporting hinges on accurate data collection and integration across departments.
  • Transparency in sustainability efforts boosts investor confidence and long-term value.

Environmental, Social, and Governance (ESG) practices are crucial for today’s businesses, impacting risk management and value creation. ESG captures climate-related financial risks and opportunities within a company’s operations, moving beyond traditional marketing to drive serious outcomes.

Investors and regulators demand better climate change disclosures, challenging companies to incorporate these into their financial judgments. Emerging regulations, like the EU’s Corporate Sustainability Reporting Directive (CSRD), require comprehensive reporting, including Scope 3 emissions, covering an entire value chain.

CFOs Should Take the Lead

CFOs are essential in ensuring the accuracy of non-financial information, connecting financial and sustainability data. They should lead ESG disclosures, influencing risk analysis, governance, and third-party assurance. Deloitte found only 37% of firms had CFOs leading sustainability efforts, highlighting the need for more active involvement.

CFOs can bridge the gap between financial and non-financial metrics, driving comprehensive sustainability reporting. SAP Concur and Deloitte report.

Data Collection and Management: A Fundamental Challenge

Data is central to ESG, but many firms struggle with its collection and management. Quality data must be traceable and verifiable, yet many rely on outdated tools. Fragmented data across departments complicates reporting, necessitating modern technology for efficiency.

You can’t manage what you can’t measure. High-quality ESG data is crucial for transparency and compliance. — Forrester.

Effective ESG Reporting

Robust ESG reporting aligns with investor expectations and regulatory requirements. Companies must adopt frameworks like GRI, IFRS, and SASB, ensuring transparency and stakeholder confidence. Accurate data integration, particularly for Scope 3 emissions, is vital for credible reporting.

Transparent ESG reporting showcases a company’s commitment to sustainability, enhancing stakeholder trust and long-term value. — UN Global Compact.

Related Article: Dutch Companies Lead in CSRD Implementation Confidence with 79% Readiness, PwC Survey Reveals

The Way Forward

Meeting regulatory demands and stakeholder expectations requires intelligent use of technology and data systems. Companies progressing towards Net Zero or carbon-neutral goals will gain stakeholder confidence by demonstrating clear, measurable improvements.

Technology is a vital enabler in the ESG journey, helping organizations navigate data challenges and achieve sustainable success. — Deloitte.