The Corporate Sustainability Reporting Directive (CSRD) requires organizations to implement robust ESG data collection and governance systems. This means that CIOs need to arrive at strategies for effective ESG and Sustainability data management and reporting. One of the three key challenges faced is to be able to conduct “Double Materiality Assessments” where both, financial and impact materiality are evaluated. The other two challenges include “ESG Data Collection” where data is gathered from the entire business ecosystem and related data sources, and “External Assurance”, where the reporting is certified by third-party auditors to be of high quality and derived via well governed data access procedures.

The CSRD requires robust ESG data collection and governance systems. CIOs must develop strategies for effective ESG data management and reporting. The challenges they face include conducting double materiality assessments (evaluating financial and impact materiality), gathering ESG data from the entire business ecosystem, and providing assurance on the accuracy and relevance of the data through third-party auditing.

Data plays a crucial role in conducting double materiality assessments as it provides the foundation for evaluating both financial and impact materiality. If you are considering investing in data access and integration technology that is capable of handling the real-time nature and volume of data involved in a governed, secure, and quality controlled manner, then a Logical Data Management approach is ideal and proven.

According to Gartner, “CIOs need to create stronger systems of ESG data management and apply the same rigor to ESG data as they do to wider enterprise data management strategies..” and also “Organizations must think critically about the ESG information provided, ensuring they don’t spend time reporting data that is not materially significant to the organization. Identifying and prioritizing material issues will prevent organizations from buying performance information in unnecessary data and protect enterprises from “greenwashing” claims.”

Read this report to understand:

• The challenges faced in collecting ESG data, conducting materiality assessments and providing assurance on the reported data.
• What some of the best practices are in carrying out the above

Gartner, CSRD Requires CIOs to Strengthen ESG Data Management Strategies, Lillian Oyen-Ustad, Melanie O'Brien, Janel Everly, Shanna Grafeld, 22 November 2023.

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