Introduction
In the realm of ESG (Environmental, Social, and Governance) reporting, prioritizing the right datapoints is critical for an effective and compliant sustainability strategy. Identifying and focusing on the most relevant datapoints ensures that your reporting is both meaningful and aligned with regulatory requirements. This article will guide you through the process of prioritizing datapoints in your reporting initiative using Greenly’s ESG reporting platform.
Main Rules for Datapoints Prioritization
Exclude Non-Material Datapoints
Datapoints that are not material should not be included in your reporting goals. Materiality determines the significance of a datapoint in influencing stakeholders' decisions and impacting the company’s sustainability performance.
Recognize Non-Mandatory Material Datapoints
Some material datapoints may not be mandatory to report. It is essential to distinguish between mandatory and voluntary datapoints to ensure compliance without overburdening your reporting process.
Anticipate complexity on some datapoints, in particular, in particular those qualified as "Metrics"
Datapoints that address the quantitative measurement of the company's impacts can be challenging to produce.
You must also be aware that for those datapoints, the data must be produced at all cost, even by using proxy or assumptions. The company can't just say that the data is not available (contrary to other kind of datapoints, such as policies, actions and targets description).
Emphasize Impactful Datapoints
Prioritize datapoints that reflect the company’s most significant impacts on the environment and society. This ensures that your reporting addresses critical areas of sustainability.
Leverage Historical ESG Data
Utilize your historical ESG data and deliverables to fill in datapoints you have already worked on in the past. This helps maintain consistency and saves time in the reporting process.
Mandatory vs. Optional Datapoints
The CSRD framework provides relative flexibility to help companies focus on the most important items of their reporting:
Mandatory Datapoints with Opt-Out Options
Some mandatory datapoints can benefit from an opt-out period of 1 to 3 years. For instance:
1-year opt-out (e.g. Scope 3 GHG emissions for companies with fewer than 750 employees)
2-year opt-out (e.g. Number of invasive alien species for companies with fewer than 750 employees)
3-year opt-out (e.g. Disclosure of financial impacts arising from pollution-related risks (all ESRS))
Voluntary Datapoints
These datapoints are not mandatory but can be reported to provide additional insights. For example, disclosure of the timeframe in which policies in high-water stress areas will be adopted.
How to Isolate Optional Datapoints in Greenly Module
Define Your Reporting Year
Ensure you have defined your first reporting year in the module, which is crucial for automatically opting out of certain datapoints.
Access the Module
Navigate to the main screen of the module.
Filter Optional Datapoints
Use the appropriate column filter to isolate optional datapoints based on your specific needs.
What to Do with Optional Datapoints?
For optional datapoints, you have the flexibility to decide whether to treat them or not.
If you choose to handle them:
Assign a Contributor and Validator: Ensure the datapoint is managed by the right personnel.
Fill in the Datapoint: Complete the required information.
Review the Datapoint: Validate the accuracy and completeness of the data.
If you opt not to treat an optional datapoint:
Choose the “I cannot answer this question” option under the question
Select the appropriate reason (we advise choosing "Not Measured" by default)
Mark the question as Complete
At the end of the data collection process, ensure that every optional material datapoint is either completed or qualified with the appropriate option.