ESG reporting is becoming increasingly important for companies considering the growing focus on sustainability involving all stakeholders, from regulators, to businesses, to financial institutions and consumers.
For many companies, even SMEs, it is no longer a matter of choice: the recently approved Corporate Sustainability Reporting Directive, in fact, expanded the number of companies that have the obligation to publish their ESG reports.
However, because of the heterogeneity of the parameters to be monitored - which refers to environmental, social and governance aspects of the business – it is a difficult and lengthy process.
This is precisely why more and more companies are turning to Synesgy, a solution that automates and certifies the process, returning detailed information that not only helps companies determine the current situation, but also guides them toward improving their sustainability performances.
ESG reporting, why is no longer an option for SMEs
No company can afford not to monitor its sustainability performances, not even SMEs. In fact, while many small companies are still at the starting grids when it comes to ESG reporting, large companies have long since been pushed to optimize their processes for greater sustainability.
This also means looking at what is happening along the supply chain, which often consist of small companies. For the latter, therefore, failure to consider ESG reporting means risking self-exclusion from important collaboration opportunities.
But not only that, because an increasing demand for companies' environmental performance makes ESG reporting an important opportunity to promote their brand identity.
How to boost competitivity through ESG reporting
ESG reporting, additionally, takes into consideration many aspects of the businesses that are strategic to the competitiveness of the business model. Not only it can underline the aspects that put the company at risk - for example its sourcing strategy - but many different areas which relate to its competitiveness (for example employees’ turnover).
ESG reporting is therefore a compass that can help guide businesses on the right path to make sure that they have a business model that can be sustainable and competitive over time.
It all starts with data, which need to be both accurate, up-to-date and need to comply with international recognized standards. Standards are, in fact, crucial to ESG reporting, because, on the one hand, they certify the validity of the information and, on the other hand, provide a common measuring tool that allows to compare ESG performances.
ESG reporting, the Synesgy approach
Even though a standardised ESG reporting process is, therefore, essential, it is equally important that the assessment considers the specific context in which the company operates. The requirements imposed by the relevant industry and the laws of the country where the company operates must therefore be taken into account.
That is precisely what Synesgy does, thanks to questionnaires based on rigorous references of global ESG market regulations such as UNGC, GRI, UN 17 SDGs, EBA LOM, and EU Taxonomy for Sustainable Activities.
In addition, the questionnaires - which are filled out directly by the company in the form of a self-assessment - include sections with a focus precisely on the market environment in which the company operates.
Certify your ESG reporting with Synesgy
The ESG reporting data obtained from the questionnaires is checked by an Alert system of the platform, which, if it detects inaccuracies, reports the problem to the Synesgy team. After careful evaluation, the team may decide to request additional information.
This ensures that the information inserted in the questionnaire is correct and up-to-date and therefore that the result of the questionnaire also reflects the real situation of the company.
It is through this process and collaborations with global ESG market regulations that Synesgy is able to provide companies with a holistic, detailed and certified ESG score.
An intuitive and complete solution for ESG reporting
Simplicity characterizes the entire process, from filling out the questionnaire to reading the results, which are displayed through an intuitive dashboard that allows the company both to evaluate the overall score and the performance in individual areas of analysis (Business, Environmental, Social and Governance).
It is therefore a solution that is as intuitive as comprehensive. In fact, in addition to the result, a report is provided that can be downloaded through the platform (as well as the ESG score certificate).
The report provides a more detailed analysis of the business's ESG performance, highlighting the most critical areas. This is why choosing Synesgy not only provides companies with a tool that can facilitate ESG reporting, but also a valuable guide to improve their sustainability.
