ESG, what is it?
ESG refers to Environmental, Social, and Corporate Governance. It is an approach to sustainability that focuses on the three main areas of corporate responsibility: environmental, social impact, and corporate governance. ESG-related issues have taken on an increasingly important role in corporate governance in recent years. Companies are being urged to pay more attention to sustainability and responsibility, and to report on their ESG performance.
From ESG to CSRD (Corporate Sustainability Report Directive)
As of 2024/2025, certain companies are already required to report on sustainability and performance. This information must be compulsorily reviewed by an auditor. The goal is to increase transparency on environmental and social impact and thus contribute to the transition to a sustainable economy. This is in line with the Paris climate goals. In short, many companies need to start working actively now.
For whom.
A number of years have already started with companies with a public interest and more than 500 employees. These include banks, insurers and listed companies.
In the coming years, however, more and more companies and therefore sectors will be added to this.
Companies that 2024/2025 must also begin to meet this are those that meet the following 2 of the 3 following criteria:
- More than 250 employees
- Over 40 Million in Sales
- More than 20 million on the balance sheet.
However, companies that do not have to meet these requirements directly are increasingly encouraged to implement these CSRD principles in their operations and to communicate their performance in this area. This can help companies improve their reputation, attract customers and convince investors.
Support with a digital management system
A digital management system can help companies make their CSDR assurance more efficient. Such a system allows data and information to be managed in a structured and transparent manner. This can facilitate the reporting process and improve communication of a company's CSRD performance. Here are some ways digital management systems can improve CSRD assurance:
Improved data collection and reporting
A digital management system can help companies collect and analyze data related to CSRD. The system can be used to collect data on environmental performance, social impact and corporate governance. This data can then be used to create reports and analyze performance.
Transparent and structured reporting
A digital management system allows companies to prepare CSRD reports in a structured and transparent manner. The system can be used to structure and report data according to international standards. This makes it easier for stakeholders to understand and compare the company's performance with other companies.
Better stakeholder communication
A digital management system can help companies communicate their ESG performance to stakeholders. The system can be used to publish CSRD reports on the company's website and provide information to investors and other stakeholders. This can improve the company's reputation and increase stakeholder trust.
Better risk management
By using a digital management system, companies can better manage risk. The system can be used to identify and manage environmental, social impact and corporate governance risks. This can help companies be proactive in reducing risks and meeting regulatory requirements.
More efficient operations
A digital management system can help companies make their operations more efficient. The system can be used to streamline and automate processes. This can reduce costs and increase productivity. In addition, the system can help companies make decisions based on data and analysis.
Improved regulatory compliance
A digital management system can help companies comply with CSRD regulations. The system can be used to comply with laws and regulations related to the environment, social impact and corporate governance. This can help companies comply with regulatory requirements and avoid fines and other penalties.
In short, a digital management system can help companies improve their CSRD assurance by collecting and analyzing data, reporting performance in a structured and transparent way, communicating performance to stakeholders, managing risk and improving the efficiency of operations. It is important to emphasize that a digital management system is only a tool and companies should continue to strive to improve their CSRD performance through continuous monitoring, evaluation and improvement.
How can ISO2HANDLE support this?
ISO2HANDLE is a software solution for managing quality, environmental, safety and information security. It provides a standardized and digital platform for companies to implement, maintain and improve their management systems. It is therefore a useful tool for companies looking to improve their ESG/CSRD assurance.
With ISO2HANDLE, companies can document and manage their processes and procedures in a structured way.
ISO2HANDLE can also help companies measure and report on their ESG/CSRD performance. It provides various reporting capabilities, including dashboards, scorecards and trend analysis, that companies can use to track and communicate their performance to stakeholders.
In addition, ISO2HANDLE can help companies identify and manage ESG/CSRD risks. It provides functionality for risk assessment and risk management, allowing companies to identify and mitigate their risks.
Finally, ISO2HANDLE also offers integration capabilities with other systems, including ERP systems and CRM systems. This can help companies integrate and analyze their data, which can lead to improved insights and better decision-making.
So all in all, ISO2HANDLE can be a valuable addition to companies looking to improve their ESG/CSRD assurance, and for those with blue DISC profiles in particular, it can provide a structured and accurate approach to managing management systems.
