CSRD Archives - ESG Mena

Global enterprise software solution provider IFS and PwC UK have announced their collaboration on a sustainability management solution. The two shared that the solution will include technology and services aimed at helping customers navigate the sustainability disclosure landscape and embed sustainable practices into business operations.

IFS will develop a Sustainability Management module within IFS Cloud, while PwC will assist in the design and build with Environmental, Social, and Governance (ESG) criteria and regulatory guidance.

The solution is aimed at assisting IFS customers navigate the new requirements of the Corporate Sustainability Reporting Directive (CSRD) and other emerging global regulatory standards.

IFS shared that customers using IFS Cloud will be able to enlist the services of PwC to guide them on a wide range of issues in relation to governance, along with mandatory strategic ESG tasks like conducting a double materiality assessment and offering guidance for CSRD readiness.

Mark Moffat, IFS CEO, commented: “By equipping customers with the necessary tools and data, we are together enabling decisive sustainability action and ensuring we maintain the highest standards in sustainability disclosures.”

Carl Sizer, PwC UK Management Board Member and ESG Sponsor added: “Our expertise in ESG criteria and knowledge of the regulatory landscape will enable us to provide valuable guidance and support in designing a solution that empowers organisations to effectively manage their sustainability initiatives and navigate the evolving regulatory landscape.”

The first version of the Sustainability Management Module is set to launch in the IFS Cloud 24R2 release at the end of November.

PwC UK will provide the required services for companies to be compliant for their first CSRD reporting cycle in 2025, it was shared.

The third annual Workiva ESG Practitioner Survey polled over 2,000 people involved in corporate reporting, including finance and accounting, sustainability, risk, and internal audit professionals across North America, Europe, and Asia.

The report found that 87 per cent of ESG practitioners surveyed find it challenging to adapt reporting processes to comply with new regulations; specifically, 77 per cent said that obtaining third-party assurance to comply with the CSRD is challenging.

Further, a total of 59 per cent of respondents agree that ESG regulation has disrupted their company’s reporting processes; this percentage is even higher among executives at 65 per cent.

However, it was also found that 81 per cent of companies not subject to the CSRD still intend to comply.

Indeed, 88 per cent of practitioners agree that having a strong ESG reporting program will give their organisation a competitive advantage, and 84 per cent agree that integrated financial and ESG/sustainability data enables better decision-making that can improve a company’s financial performance.

Moreover, 88 per cent of ESG practitioners believe that assurance over ESG data increases the likelihood that a company will achieve its goals, and 98 per cent are confident in the accuracy of their data.

That being said, eighty-three per cent also agree that collecting accurate data to fulfil the CSRD requirements will be a challenge for their organisation.

To aid in this challenge, 92 per cent of companies are investing in technology to improve collaboration among reporting teams.

The report also found that there remains a disconnect between executives and managers, in that while 53 per cent are totally satisfied with their organisation’s materiality assessment, only 23 per cent of managers are.

Likewise, a similar disparity was found regarding satisfaction with the application of controls over ESG/sustainability data. Forty-eight per cent of executives were satisfied, compared with just 27 per cent of managers.

Read the full report here.

CSRD

IFS and PwC UK Partner for Sustainability Management Solution

Workiva: Third Annual ESG Practitioner Survey