Why Tracie
Relevance
The EU Commission has put companies as important wheels in the great transition, and we ensure that our customers meet the legislation and the future market conditions in an inner green market in EU and the new trends rapidly sprouting around the world. Companies need ESG data for managing their businesses on the same level as with financial data today with monthly management reports, KPI’s, benchmarking and development of best practices.
Timeline
Demands
New Requirement Reporting
With ESG companies encounter three additional sets of reporting reconciliated with the financial report and subject to the same audit and the same reporting procedures as the annual report is today.
New need for data collection & maintenance of data with little or no data points today.
Increased workload within data registration and data management, typically placed with the CFO.
We estimate that it will cost [the large Danish companies] DKK 7-8 billion and will correspond to the expenses that companies currently spend on the financial report alone.
Landscape
EU Green Deal
The objective of the EU Green Deal is to transform the EU to a Fair, Green and Circular Economy based on the Sustainable Development Goals.
The EU Green Deal drives sustainable growth and shifts toward a climate neutral society based on a Circular Economy, Regenerative Ecosystems, Secure a healthy and safe food production and leave no one behind
CSRD/SFDR
The Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD) is the EU frameworks containing a common set of reporting standards, ensuring comparability & transparency of ESG information. SFDR sets screening standards for investments and CSRD facilitates benchmarking, assessment, and effective monitoring of corporate sustainability performance, ultimately driving sustainable and responsible business practices.
ESRS
The European Sustainability Reporting Standards (ESRS), produced by EFRRAG, provides a clear guideline for companies on how to accurately report ESG.
ESRS includes two general methodologies and 10 industry-specific standards.
40 more industry-specific standards are under development.
