ESG reporting and attaining a certain standard of performance have mostly been voluntary to date however an increasing number of regulators are moving towards mandated reporting and enforcing a minimum standard of performance. The KEY ESG software allows your organisation to be ahead of the curve and ensures that your organisation is not taken by surprise when new regulations come into force.
The following examples illustrate that regulation is in place, or expected to come into place, across each of the three dimensions: Environment, Social and Governance.
These are only a few examples and the trend is definitely moving towards increasingly strict regulation on ESG metrics across the globe.
The environment factor in ESG refers to a company’s impact on our natural environment. Our KEY ESG methodology measures this factor through greenhouse gas emissions, water consumption and land use (for biodiversity risk).
The social factor in ESG refers to how a company manages its relationship with its different stakeholders. This includes its employees, supply chain partners, consumers and in addition the local community in which it operates. Our KEY ESG methodology measures this factor by assessing employee diversity and inclusion hiring, gender pay gap analysis, the ratio of CEO versus median pay, labour conditions throughout the supply chain, employee health and safety and human capital investment through training of workforce.
The answer is – it depends! KEY ESG supports companies across all stages of the ESG journey, from those who are currently unsure as to what ESG means to them, to those who already have internal ESG management processes in place.
If processes are already in place, we can complete our assessment in as little as two hours. If you are new to ESG, our software user experience is designed to make managing ESG as intuitive as possible. We’ve done the heavy lifting for you, and our software will save you significant time by navigating the myriad of ESG frameworks that are currently available for you.
Sustainability is a blanket-statement about anything a company does to “do well by doing good” and is often synonymous with corporate social responsibility. Often sustainability and corporate social responsibility activities are difficult to measure and quantify, making it challenging to measure both the real impact of these activities and to compare one company’s performance versus anothers. In order to support data-driven evaluations of a company’s performance in the area of sustainability/corporate responsibility the investor community has adopted ESG as the leading method to evaluate a company’s long-term performance through non-financial measures.
ESG stands for Environment, Social and Governance. Taken together, ESG refers to criteria that assess an organisation’s sustainability and its impact on the environment and society.
No. Effectively managing ESG unlocks value for any company, whether private or public. The following are example scenarios, applying to both private and public companies, of when effective ESG management can generate positive value: applying for a bank business loan, participating in public procurement, and, attracting talented employees.
KEY ESG’s software uses ESG measurement methodologies as outlined by standard setters like the Global Reporting Initiative. Importantly, our carbon footprint calculators are all in line with the GHG Protocol.
KEY ESG software integrates the industry standard investor frameworks for ESG reporting. This includes, amongst others, the ESG Data Convergence Initiative and the SFDR (Sustainable Finance Disclosure Regulation). As new regulatory frameworks come into effect, our software will automatically flag this to users who can then start using KEY ESG to report under the new rules.
Our focus on industry leading frameworks will save you reporting time as the market is converging on the topic of ESG measurements.
ESG matters are relevant to all industries. Each company, regardless of its type of operations or end-product or services, through its way of doing business will have an impact on ESG. A case in point is that government announced climate-related disclosures will be applied across all industries equally. To account for inherent differences in the expected ESG outcomes by industry, KEY ESG provides industry-specific benchmarks to ensure your company is compared in an apples-to-apples fashion.
The governance factor in ESG refers to how a company is governed, which in turn influences how a company makes decisions, how its board of directors is established and functions, and how it manages risk. Our KEY ESG methodology measures these factors through an assessment of the quality of a company’s board composition considering factors such as tenure, diversity, independence, and relevant experience, consultation process for stakeholder issues, anti-corruption policies and reporting mechanisms for ethical and unlawful behavior (whistleblower scheme).
Effectively managing your company’s ESG performance allows you to unlock sustainable business value and helps to differentiate yourself from your competition. Incorporating ESG factors into day-to-day business processes supports long-term value creation.
A company’s interaction with the environment, regulators, and other stakeholders impacts upon its long-term competitiveness, reputation, and success. Performance with regards to ESG matters can determine whether or not a firm receives a business loan from the bank, whether it is given support from regulators or a fine, and whether or not it is successful in public procurement. These factors help attract the best talent and investors, and increasingly impact upon share price performance (for listed companies), cost of capital, and value creation potential.
Our ESG reporting software solutions offer a number of benefits, including a secure and user-friendly interface, a comprehensive approach to Environmental, Social and Governance policies (including carbon accounting), automated ESG calculations, constant updates via the cloud, and support from our team of ESG experts. Our software also helps companies save time, energy, and resources, and align their ESG initiatives with their business and ESG goals.
In the context of ESG and sustainability, risk management refers to the practices and processes companies use to identify and mitigate environmental, social, and governance risks that could negatively impact their sustainability performance. This includes identifying ESG risks, assessing their potential impact, and implementing strategies to mitigate those risks.
Sustainability management refers to the practices and processes companies use to manage their sustainability impact and improve their overall sustainability performance. This includes measurement and management of ESG metrics, risk management, and communication of sustainability data to stakeholders.
KEY ESG's software provides a holistic solution for sustainability management, helping companies measure and manage their ESG metrics, manage risk, and communicate their sustainability performance data to stakeholders. Our ESG reporting software also offers real-time updates, data interpretation and visualisation, and ready-to-go reports to help companies understand their sustainability performance and make informed decisions.
ESG reporting refers to the process of evaluating and communicating a company's performance on environmental, social, and governance (ESG) metrics. This process helps companies measure and manage their ESG impact, communicate their sustainability story to stakeholders, and improve their overall sustainability performance.
KEY ESG's software provides a comprehensive and intuitive solution for ESG reporting. Our software helps companies automate their ESG data processes, measure their ESG metrics in real-time, track and compare their performance, and generate ready-to-go reports based on industry-leading standards and relevant regulations.
KEY ESG's software provides comprehensive risk management tools to help companies identify and assess ESG risks, and track their progress in mitigating those risks over time. Our software also helps companies understand the potential impact of ESG risks on their sustainability performance, and provides insights to help them make informed decisions.
The reporting process for ESG and sustainability typically involves the following steps: data collection, metric calculation, data analysis, report generation, and report dissemination. The data collection process involves gathering relevant ESG data from internal and external sources, while the data analysis process involves evaluating and interpreting the data to understand the company's ESG performance. The report generation process involves creating a report based on industry-leading standards and prevailing ESG regulations, while the report dissemination process involves sharing the report with stakeholders.
KEY ESG is an online, cloud-based software that you can access anytime, anywhere. First time users have direct access to an industry ESG benchmark and a self-guided ESG baseline assessment. After completing the assessment – which can be done in just a few hours – a unique KEY ESG report will be generated. This can be downloaded as a PDF.
The report shows you your company’s ESG baseline performance in comparison with industry peers across a set of ESG metrics. Informed by your company’s relative performance, the report outlines tailor-made recommendations on how you can improve your ESG outcomes. Furthermore, the ready-to-print report can be used to effectively communicate your company’s ESG performance to external and internal stakeholders.
After completing the initial baseline, the cloud-based software can be accessed at any point to generate additional ESG assessments, so that you can track your company’s ESG performance over time. Because the software is cloud-based, we also ensure that the ESG performance of your peers is updated in real-time, so that you always have access to the most up-to-date ESG information.
The first phase of companies who need to report on the Corporate Sustainability Reporting Directive (CSRD) will be required to report their 2024 data in January 2025. That means getting ready now. Companies which are in-scope should start to get a reporting plan and the necessary tools in place to ensure 2024 data collection is structured and seamless.
CSRD compliance does not have to be a headache. With the right processes and technical tools in place, you can prepare your business for the transition seamlessly. Contact one of our experts to take the first step.
Listed companies: CSRD will apply to companies which meet any of these criteria:
Large private companies: CSRD will also apply to companies which meet two of the following three criteria:
KEY ESG keeps track of global ESG regulatory developments. We have incorporated major ESG regulations such as the SFDR, CSRD, SEC and SRD in our reporting software tool and help our users measure and report metrics they need to disclose to regulators. Our users can rest assured that we update these metrics as new regulatory requirements or changes to existing requirements are announced.
The aim of the Corporate Sustainability Reporting Directive (CSRD) is to enhance the transparency, consistency, and comparability of sustainability reporting by certain companies in the European Union. The CSRD builds upon the existing Non-Financial Reporting Directive (NFRD) and seeks to address its limitations by introducing more robust and standardized reporting requirements.
The Corporate Sustainability Reporting Directive (CSRD) is an updated and expanded version of the existing Non-Financial Reporting Directive (NFRD). The CSRD is an EU legislative initiative that aims to enhance the transparency and comparability of sustainability reporting by companies in the region.
Double materiality means that companies are required to assess and disclose information about the environmental, social, and governance (ESG) factors that can affect the company (internal impacts) as well as the ESG factors that the company, through its activities, products, and services, affects externally (external impacts).
The short answer is yes, KEY ESG software follows cybersecurity best practices to keep your data secured. KEY ESG uses encryption at multiple layers in the platform, we leverage managed services which provide high levels of security using their default security controls. Traffic in-transit is secured with HTTPS. Requests are encrypted between the customer and an application load balancer, which will decrypt the request and forward it onto our application servers which are hosted in a private virtual cloud network in AWS.
In-transit traffic between our application servers and Azure is secured with SSL/TLS and the data itself is encrypted at-rest which also includes backups and temporary files created when running queries.