The environmental, social and governance (ESG) world is entering a new era characterized by regulatory compliance, with multiple jurisdictions either adopting or finalizing sustainability reporting regulations. This shift brings both benefits and challenges. On one hand, companies gain standardized rules for aligning their reporting activities. On the other hand, they face the task of setting up efficient and cost friendly ESG reporting programs.
The issue lies in leveraging technology to automate reporting compliance processes while ensuring scalability. At Archer, we recognize this challenge. To address it, we have developed ESG Management solution to help companies collect, manage, and report data for regulatory ESG frameworks. Our latest ESG release introduces core capabilities designed to facilitate compliance with regulatory standards, such as CSRD ESRS and IFRS Sustainability Standards.
EU CSRD
The European Commission (EU)'s adoption of the Delegated Act on European Sustainability Reporting Standards (ESRS) on 31 July 2023 marks a significant milestone. ESRS, mandated by the Corporate Sustainability Reporting Directive (CSRD), applies to over 50,000 organizations globally, on a various scale, from 1 January 2024. Archer's phased release of the ESRS reporting framework aims to support companies in meeting the requirements of this regulation.
As part of this journey, companies must conduct a double materiality assessment to identify important disclosure topics from both impact and financial materiality perspectives. Archer's Double Materiality Calculator (DMC), released in September 2023, empowers companies to kickstart their sustainability efforts by identifying most material topics.
In our latest ESRS release, we are excited to introduce enhanced capabilities aligned with companies' reporting requirements. These capabilities include the reporting framework for ESRS 1, ESRS 2, Environment (E)1, and Social (S)1, translating complex regulatory requirements into a structured, automated workflow for efficient reporting.
Furthermore, Archer's ESG solution enables the collection of diverse set of information, including metrics and disclosures according to ESRS guidelines.
Integrating with Archer's existing risk and issue management modules, companies can identify and act upon impacts, risks, and opportunities (IRO) effectively and all from one place.
Moreover, companies can in real time track their progress in completing ESRS as they advance through different stages of reporting.
In the next upcoming phases, we’ll be releasing the remaining topical ESRS standards across E, S and G.
IFRS Sustainability Standards
The International Sustainability Standards Board (ISSB) of the International Financial Reporting Standards (IFRS) Foundation introduced two key sustainability standards, namely IFRS S1 and IFRS S2, in June 2023. IFRS S1 focuses on disclosure requirements that enable companies to effectively communicate sustainability-related risks and opportunities to investors. On the other hand, IFRS S2 outlines specific climate-related disclosures, intended to complement, and be used alongside IFRS S1.
While IFRS Sustainability Standards do not constitute a regulatory framework in themselves, their widespread recognition has prompted several countries to express interest in integrating these standards into their national sustainability reporting frameworks. Among these countries are the U.K., Brazil, Canada, Singapore, South Africa, and more, reflecting a global movement towards adopting comprehensive sustainability reporting practices.
With the latest capabilities introduced in our ESG Management solution, companies can effectively report based on IFRS S1 and S2. Our dedicated reporting framework enables companies to streamline their IFRS S1 and S2 reporting, enhancing data collection, structuring, analysis, and risk management capabilities.
Take Actions
Accelerate your ESG regulatory reporting journey with Archer for improved efficiency, seamless integration, and a comprehensive approach.
Register to join us on April 19, 2024 for the Free Friday Tech Huddle (FFTH) dedicated to the latest ESG solution release.
To learn more and see the latest functionality in action, contact your dedicated sales representative today to discover how Archer can help you to comply with sustainability regulations.