Source: Fintech Global
In a recent post by Position Green, the firm outlined how its technology can help to transform sustainability reporting in the EU.
The Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) are swiftly becoming a focal point for sustainability professionals across the European Union. The mandate for companies to align with these regulations requires a deep dive into the European Financial Reporting Advisory Group’s (EFRAG) guidelines, aiming to develop comprehensive processes that adhere to the new legislative framework.
Position Green steps in with a software solution purposefully engineered for the ESRS challenges, equipped with the acumen of seasoned sustainability advisors. Felicia Gustafson, leading Group Product Management at Position Green, and Olivia Krall, a distinguished Manager and Sustainability Advisor, delve into the software’s development process, highlighting the meticulous decisions made to ensure its effectiveness.
The double materiality assessment bifurcates into impact materiality and financial materiality, with the former drawing on frameworks like the UN Guiding Principles for Businesses and Human Rights and the OECD Guidelines for multinational enterprises. The impact materiality scoring hinges on the scale, scope, remediability, and likelihood of sustainability impacts, establishing a nuanced understanding of severity.
Conversely, the financial materiality scoring embedded within the software reflects Position Green’s advisory expertise, focusing on the financial impact’s size and its probability. This dual-materiality framework ensures that both sustainability and financial impacts are meticulously evaluated, providing a comprehensive tool for ESRS compliance.
Read full article: https://fintech.global/2024/02/27/how-position-greens-software-transforms-eu-sustainability-reporting/
