From optional to mandatory
In the sustainability debate, clarity about decisions has overshadowed the eco-nimbus. Resource efficiency, energy security, reduction of greenhouse gas emissions, impact on customers and staff acquisition, circular economy, cost offsetting are the main drivers of the current sustainability transformation. And regulations.
In Switzerland, the Implementing Ordinance on Climate Reporting will come into force on 1 January 2024. Swiss companies with significant operations in neighbouring European countries will also have to comply with new reporting requirements from the EU regulator. These include the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Sustainability Reporting Standards (ESRS). These regulations specify the content, granularity and format of sustainability reporting (more on this in the PwC blog post "Swiss requirements for sustainability reporting"). In addition, the audit requirement has been extended from the mere existence of a sustainability report to a content-based audit that from a European perspective must be repeated annually.
Much new, much unclear
Legislators and standard setters are currently moving at breakneck speed. For companies, however, much remains unclear. Where to start? And how? The required data is stored in different systems, the interpretation of sustainability reporting requirements varies widely, and the specific scope of a sustainability report is not clearly defined. Not surprisingly, some CEOs and CFOs are helplessly relying on subjective estimates and dusty Excel spreadsheets.
Companies are faced with the difficult task of identifying the data sources that cover both the required and the correct results. It would be useful and desirable if sustainability reporting could be performed digitally, at the touch of a button, rather than through time-consuming manual work. However, this requires that the required data is available, maintained and accurate.
Data at the start
This is where PwC Switzerland's ESG Preparation Analysis comes into play. This application can be used to analyse data from the in-house ERP system SAP, which is the basis for all company data. The analysis shows whether processes are missing (e.g., recycling) or whether the company should streamline, reorganise, and complete existing processes. It may also reveal that data is needed from external sources, highlighting the need to interface it with the SAP ERP system in order to be used for automated sustainability reporting.
