Simplifying ESG reporting with automated analysis
Simplifying ESG reporting with automated analysis
How to meet CSRD requirements and drive sustainability through data
How to meet CSRD requirements and drive sustainability through data
Mar 3, 2025
ESG is no longer a trend but a business necessity that is becoming deeply embedded in the business world. With the introduction of the Corporate Sustainability Reporting Directive (CSRD), many organizations were initially required to provide detailed reports on their environmental, social, and governance performance. However, the European Commission has recently implemented an important change through the Omnibus package: the reporting obligation now only applies to the largest companies in Europe.
This change represents significant relief for SMEs but does nothing to alter the growing expectations from investors, customers, and other stakeholders regarding transparency and sustainability. For the largest organizations, CSRD reporting still presents a challenge that requires a strategic approach.
Why ESG Reporting Goes Beyond Compliance
The adjusted CSRD requires the largest companies to produce comprehensive, standardized ESG reports. Although smaller organizations are now exempt from this formal obligation, ESG reporting offers strategic benefits for companies of all sizes that extend far beyond mere regulatory compliance.
ESG reporting delivers several concrete advantages:
Increased investor confidence: Transparent ESG performance attracts sustainable investors and can lead to better financing conditions
Improved operational efficiency: Systematically measuring and analyzing consumption data leads to cost savings through energy conservation, more efficient material use, and reduced waste streams
Enhanced reputation: Consumers and business customers increasingly choose brands and suppliers that can substantiate their sustainability claims with concrete data
Future-proofing: By investing now in solid ESG data collection and analysis, you're prepared for future obligations
The trend toward greater sustainability and transparency continues unabated. By being proactive in your ESG reporting, even when not legally required, you position your company as forward-thinking in your market.
The Challenge: Where to Find the Required ESG Data?
One of the biggest challenges in ESG reporting is collecting accurate and relevant data from different corners of your organization. This data is often scattered across departments and systems, making the compilation of a coherent report complex.
Sources of Environmental Data
For a complete picture of your environmental performance, you need to look at various sources within your organization:
Facilities and operations: Energy bills, energy audits, waste reports, and emissions data form the basis of your environmental reporting
Supply chain: For scope 3 emissions, you need data from suppliers and logistics partners about their environmental impact
Compliance department: Here you'll find essential documentation on environmental permits and compliance with environmental regulations
Combining these data gives you insight into your full ecological footprint, from direct emissions to indirect impact in your value chain.
Sources of Social Data
The social component of ESG revolves around people – both inside and outside your organization:
HR systems: These contain crucial information about workforce composition, diversity, training investments, and compensation structures
Health and safety: Here you'll find data on incidents, accidents, preventive measures, and safety audits
CSR initiatives: Documentation on community projects and social impact is often maintained by communications or PR departments
Together, these data tell the story of how your organization interacts with employees and contributes to society.
Sources of Governance Data
For the governance aspect, you work with the board level and supporting departments:
Board secretariat: Information about board composition, diversity, and decision-making processes
Financial and legal departments: Documentation on remuneration policies, anti-corruption measures, and compliance
Procurement department: Data on supplier due diligence and ethical standards in the supply chain
Good governance data demonstrates that your organization is managed responsibly, with attention to ethics and integrity.
What Exactly Needs to Be Reported Under CSRD?
The CSRD prescribes comprehensive reporting across three main domains that together provide a holistic picture of an organization's sustainability performance.
Environmental Aspects
In the environmental field, the measurement and reporting of greenhouse gas emissions is central. This includes not just your direct emissions, but the entire chain:
Greenhouse gas emissions (Scope 1, 2, and 3)
Total energy consumption, broken down by renewable and non-renewable sources
Detailed information on waste production, processing, and recycling rates
Water consumption and recycling, an increasingly important aspect given growing water scarcity
This data must not only be described qualitatively but also substantiated quantitatively with measurable indicators.
Social Aspects
The social domain focuses on your organization's impact on people, both internally and externally:
Diversity and inclusion within the workforce, including gender ratios, age distribution, and cultural diversity
Pay gaps between different groups of employees
Employee health, safety, and development, measured through accident statistics, absenteeism, and training investments
Broader social impact, such as initiatives for local communities
Transparency on these social factors is becoming increasingly important to stakeholders, from potential employees to investors.
Governance Aspects
The governance aspect highlights how your organization is governed and what ethical frameworks are employed:
Board structure, diversity, and expertise of governing bodies
Ethical policies, including anti-corruption measures and whistleblower arrangements
Link between executive remuneration policy and ESG performance
These aspects demonstrate how seriously sustainability is taken at the highest level in your organization.
The Omnibus Package: What Does It Mean for Your Organization?
The recent change by the European Commission via the Omnibus package has significantly altered the playing field for ESG reporting. This revision stems from the need to alleviate administrative burdens, particularly for small and medium-sized enterprises.
Impact by Organization Type
The Omnibus package has different implications depending on the size of your organization:
For large companies: The CSRD obligation remains in force, although there may be simplifications to make the process more efficient. The exact definition of 'largest companies' is established in specific threshold values.
For medium-sized and smaller organizations: There is now an exemption from the legal obligation to publish extensive ESG reports according to CSRD standards. This does not negate the fact that voluntary reporting continues to offer strategic benefits.
Despite these changes, the trend toward greater transparency and sustainability continues unabated. Stakeholders increasingly expect insight into the sustainability performance of all companies, regardless of size.
The Solution: Analytics as the Key to Efficient ESG Reporting
Manually collecting and analyzing ESG data is a time-consuming and error-prone process. Modern analytics solutions offer an effective answer to this challenge by streamlining the entire reporting process.
Benefits of Analytics for ESG Reporting
Analytics transforms your ESG reporting process in several ways:
Integrated data streams: Modern platforms bring together data from various sources into one central source of truth, breaking down data silos
Automatic calculations: Complex metrics such as carbon footprints are calculated consistently and accurately, eliminating human error and ensuring reproducibility
Real-time monitoring: By integrating IoT sensors and continuous data feeds, you can directly track critical performance indicators and quickly adjust where necessary
Visual dashboards: Interactive visualizations make complex ESG data accessible to various stakeholders and support evidence-based decision making
Robust audit trail: Automated systems maintain a digital history of all data sources and calculations, which is crucial for credibility and verification
These benefits make analytics not just a tool for more efficient reporting, but also a strategy to extract more value from your ESG efforts.
How VDS Transforms Your ESG Reporting Process
At VDS, we understand that effective ESG reporting requires more than just technology. Our approach combines advanced analytics solutions with practical expertise to elevate your ESG reporting.
Our Integrated ESG Reporting Approach
VDS supports your ESG reporting process with a comprehensive set of solutions:
Customized analytics platforms: We implement solutions such as Power BI dashboards that perfectly align with your organizational structure and reporting needs
IoT solutions for accurate data collection: Our sensors measure and report real-time data on energy consumption, emissions, and other environmental indicators
Automated workflows: We eliminate manual processes by seamlessly integrating data sources into a single reporting framework
Scalable solutions: Our systems grow with your organization and flexibly adapt to changing reporting requirements
What truly distinguishes VDS is our approach as a strategic partner. Beyond technology, we provide advice and training to help your team get the most out of your ESG analytics. We share best practices, interpret trends, and help you translate data-driven insights into concrete sustainability initiatives.
From Legal Obligation to Strategic Valuable Insight
Whether you fall under the adjusted CSRD obligation or not, ESG reporting doesn't have to be a burdensome task. With the right approach, it transforms from an administrative burden into a strategic tool that delivers valuable insights for your entire organization.
Effective ESG reporting brings hidden inefficiencies to light, identifies cost-saving opportunities, and reveals possibilities for innovation. It helps you anticipate risks before they materialize and enables you to seize opportunities before your competitors do.
By automating and optimizing your ESG reporting with VDS, you position your organization as a leader in sustainability. You turn conscious transparency into a competitive advantage in a market where authenticity and responsibility weigh increasingly heavily.
Let's take this step together toward a more sustainable future where responsible business operations go hand in hand with commercial success. A future where ESG is no longer seen as an obligation, but as an integral part of modern business operations that creates value for all stakeholders.
Ready to optimize your ESG reporting? Contact VDS for a no-obligation conversation about how we can help you.
ESG is no longer a trend but a business necessity that is becoming deeply embedded in the business world. With the introduction of the Corporate Sustainability Reporting Directive (CSRD), many organizations were initially required to provide detailed reports on their environmental, social, and governance performance. However, the European Commission has recently implemented an important change through the Omnibus package: the reporting obligation now only applies to the largest companies in Europe.
This change represents significant relief for SMEs but does nothing to alter the growing expectations from investors, customers, and other stakeholders regarding transparency and sustainability. For the largest organizations, CSRD reporting still presents a challenge that requires a strategic approach.
Why ESG Reporting Goes Beyond Compliance
The adjusted CSRD requires the largest companies to produce comprehensive, standardized ESG reports. Although smaller organizations are now exempt from this formal obligation, ESG reporting offers strategic benefits for companies of all sizes that extend far beyond mere regulatory compliance.
ESG reporting delivers several concrete advantages:
Increased investor confidence: Transparent ESG performance attracts sustainable investors and can lead to better financing conditions
Improved operational efficiency: Systematically measuring and analyzing consumption data leads to cost savings through energy conservation, more efficient material use, and reduced waste streams
Enhanced reputation: Consumers and business customers increasingly choose brands and suppliers that can substantiate their sustainability claims with concrete data
Future-proofing: By investing now in solid ESG data collection and analysis, you're prepared for future obligations
The trend toward greater sustainability and transparency continues unabated. By being proactive in your ESG reporting, even when not legally required, you position your company as forward-thinking in your market.
The Challenge: Where to Find the Required ESG Data?
One of the biggest challenges in ESG reporting is collecting accurate and relevant data from different corners of your organization. This data is often scattered across departments and systems, making the compilation of a coherent report complex.
Sources of Environmental Data
For a complete picture of your environmental performance, you need to look at various sources within your organization:
Facilities and operations: Energy bills, energy audits, waste reports, and emissions data form the basis of your environmental reporting
Supply chain: For scope 3 emissions, you need data from suppliers and logistics partners about their environmental impact
Compliance department: Here you'll find essential documentation on environmental permits and compliance with environmental regulations
Combining these data gives you insight into your full ecological footprint, from direct emissions to indirect impact in your value chain.
Sources of Social Data
The social component of ESG revolves around people – both inside and outside your organization:
HR systems: These contain crucial information about workforce composition, diversity, training investments, and compensation structures
Health and safety: Here you'll find data on incidents, accidents, preventive measures, and safety audits
CSR initiatives: Documentation on community projects and social impact is often maintained by communications or PR departments
Together, these data tell the story of how your organization interacts with employees and contributes to society.
Sources of Governance Data
For the governance aspect, you work with the board level and supporting departments:
Board secretariat: Information about board composition, diversity, and decision-making processes
Financial and legal departments: Documentation on remuneration policies, anti-corruption measures, and compliance
Procurement department: Data on supplier due diligence and ethical standards in the supply chain
Good governance data demonstrates that your organization is managed responsibly, with attention to ethics and integrity.
What Exactly Needs to Be Reported Under CSRD?
The CSRD prescribes comprehensive reporting across three main domains that together provide a holistic picture of an organization's sustainability performance.
Environmental Aspects
In the environmental field, the measurement and reporting of greenhouse gas emissions is central. This includes not just your direct emissions, but the entire chain:
Greenhouse gas emissions (Scope 1, 2, and 3)
Total energy consumption, broken down by renewable and non-renewable sources
Detailed information on waste production, processing, and recycling rates
Water consumption and recycling, an increasingly important aspect given growing water scarcity
This data must not only be described qualitatively but also substantiated quantitatively with measurable indicators.
Social Aspects
The social domain focuses on your organization's impact on people, both internally and externally:
Diversity and inclusion within the workforce, including gender ratios, age distribution, and cultural diversity
Pay gaps between different groups of employees
Employee health, safety, and development, measured through accident statistics, absenteeism, and training investments
Broader social impact, such as initiatives for local communities
Transparency on these social factors is becoming increasingly important to stakeholders, from potential employees to investors.
Governance Aspects
The governance aspect highlights how your organization is governed and what ethical frameworks are employed:
Board structure, diversity, and expertise of governing bodies
Ethical policies, including anti-corruption measures and whistleblower arrangements
Link between executive remuneration policy and ESG performance
These aspects demonstrate how seriously sustainability is taken at the highest level in your organization.
The Omnibus Package: What Does It Mean for Your Organization?
The recent change by the European Commission via the Omnibus package has significantly altered the playing field for ESG reporting. This revision stems from the need to alleviate administrative burdens, particularly for small and medium-sized enterprises.
Impact by Organization Type
The Omnibus package has different implications depending on the size of your organization:
For large companies: The CSRD obligation remains in force, although there may be simplifications to make the process more efficient. The exact definition of 'largest companies' is established in specific threshold values.
For medium-sized and smaller organizations: There is now an exemption from the legal obligation to publish extensive ESG reports according to CSRD standards. This does not negate the fact that voluntary reporting continues to offer strategic benefits.
Despite these changes, the trend toward greater transparency and sustainability continues unabated. Stakeholders increasingly expect insight into the sustainability performance of all companies, regardless of size.
The Solution: Analytics as the Key to Efficient ESG Reporting
Manually collecting and analyzing ESG data is a time-consuming and error-prone process. Modern analytics solutions offer an effective answer to this challenge by streamlining the entire reporting process.
Benefits of Analytics for ESG Reporting
Analytics transforms your ESG reporting process in several ways:
Integrated data streams: Modern platforms bring together data from various sources into one central source of truth, breaking down data silos
Automatic calculations: Complex metrics such as carbon footprints are calculated consistently and accurately, eliminating human error and ensuring reproducibility
Real-time monitoring: By integrating IoT sensors and continuous data feeds, you can directly track critical performance indicators and quickly adjust where necessary
Visual dashboards: Interactive visualizations make complex ESG data accessible to various stakeholders and support evidence-based decision making
Robust audit trail: Automated systems maintain a digital history of all data sources and calculations, which is crucial for credibility and verification
These benefits make analytics not just a tool for more efficient reporting, but also a strategy to extract more value from your ESG efforts.
How VDS Transforms Your ESG Reporting Process
At VDS, we understand that effective ESG reporting requires more than just technology. Our approach combines advanced analytics solutions with practical expertise to elevate your ESG reporting.
Our Integrated ESG Reporting Approach
VDS supports your ESG reporting process with a comprehensive set of solutions:
Customized analytics platforms: We implement solutions such as Power BI dashboards that perfectly align with your organizational structure and reporting needs
IoT solutions for accurate data collection: Our sensors measure and report real-time data on energy consumption, emissions, and other environmental indicators
Automated workflows: We eliminate manual processes by seamlessly integrating data sources into a single reporting framework
Scalable solutions: Our systems grow with your organization and flexibly adapt to changing reporting requirements
What truly distinguishes VDS is our approach as a strategic partner. Beyond technology, we provide advice and training to help your team get the most out of your ESG analytics. We share best practices, interpret trends, and help you translate data-driven insights into concrete sustainability initiatives.
From Legal Obligation to Strategic Valuable Insight
Whether you fall under the adjusted CSRD obligation or not, ESG reporting doesn't have to be a burdensome task. With the right approach, it transforms from an administrative burden into a strategic tool that delivers valuable insights for your entire organization.
Effective ESG reporting brings hidden inefficiencies to light, identifies cost-saving opportunities, and reveals possibilities for innovation. It helps you anticipate risks before they materialize and enables you to seize opportunities before your competitors do.
By automating and optimizing your ESG reporting with VDS, you position your organization as a leader in sustainability. You turn conscious transparency into a competitive advantage in a market where authenticity and responsibility weigh increasingly heavily.
Let's take this step together toward a more sustainable future where responsible business operations go hand in hand with commercial success. A future where ESG is no longer seen as an obligation, but as an integral part of modern business operations that creates value for all stakeholders.
Ready to optimize your ESG reporting? Contact VDS for a no-obligation conversation about how we can help you.
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