Inspired mainly by environmental and social awareness, Europe is requiring companies with more than 500 people to develop a sustainability plan by 2022, to collect ESG (Environmental, Social, and Governance) data, and publish it. It won’t be long before all SMEs will be required to do the same. Few financial institutions and companies are really prepared for this. dFakto, a specialist in data-driven management solutions, puts its expertise at their disposal.
Europe, an enthusiastic pioneer in all ESG advances, has been considering an incentive for sustainability since 2015. It should be noted that this matter, which will soon affect all companies, including SMEs (50<500 people), is attractive to consumers, as well as employees looking for meaning in their work, and has the backing of more and more investors (almost 80% of them pay attention to it). Therefore, investments should be shifted towards sustainability.
Companies will have to evaluate their activities against the criteria of EU Taxonomy (a classification system that establishes a list of environmentally-sustainable financial activities), and then assess their alignment with the same.
This Taxonomy is likely to play an important role in helping the EU implement the European Green Deal. It would provide companies, investors, and policymakers with appropriate definitions for which financial activities may be considered environmentally sustainable. In this way, it should create security for investors, protect private investors from greenwashing, help companies become more climate-friendly and help shift investments to where they are most needed.
Any company wanting to prepare for this big step must start to align itself with standards that will inevitably impact its business model. It will also need to increase its transparency and publish its achievements, commitments and, therefore it ESG indicators, on its website.
The 6 big families of indicators.
dFakto, in its turn, supports the organisations along their ESG journey, that consists in the following steps: define, connect, measure, integrate, publish, and then communicate.
Whatever its size, the first difficulty a company faces is its lack of expertise on the subject. “Few people know where to start,” explains Arnaud Bonisoli, Sustainability Solutions Manager at dFakto. Secondly, “managing this new data requires additional agility in technology.”
In just a few weeks, dFakto can very rapidly respond to different needs: Expertise in data management and sustainability; Implementation of a detailed plan with objectives, obligations, responsible persons, budgets; Creation of a timeline; Implementation of data collection processes and tools …
From that moment, dFakto’s platform proPilot can take over, follow up on all initiatives and impacts, and determine whether the company is sticking to the plan it has put in place.
Platforms will automatically generate reports and communications. With just a few clicks, companies will be able to print the various ESG reports necessary and send them to investors or consumers. And the company will also be able to publish this data on its website in real time.