Introduction
Ensuring accurate and complete ESG (Environmental, Social, and Governance) reporting can be challenging, especially when data is unavailable. Understanding how to handle data unavailability is crucial for maintaining compliance and transparency. This article will guide you through the steps to take when you encounter data unavailability in your ESG reporting using Greenly’s platform.
Why the Data Would Be Unavailable for Certain Datapoints?
The Corporate Sustainability Reporting Directive (CSRD), coming into effect in 2025, encompasses a wide range of ESG information. It is expected that not all companies will be able to produce content for every single datapoint immediately. Here are some reasons why data might be unavailable:
Incomplete Initiatives: Some initiatives required to measure all metrics may not have been launched yet.
Lack of Tools: Companies might not have the appropriate tools internally to ensure proper measurement and data monitoring.
Dependence on External Stakeholders: Reliance on external parties for information can cause delays or gaps in data collection.
Due to these challenges, the CSRD allows some flexibility for certain types of datapoints.
Case 1: The Datapoint is a Metric
What is a Metric?
Metrics are quantitative data points, such as greenhouse gas (GHG) emissions, employee information, or salary data.
How to Isolate Metric Datapoints in Greenly Platform?
Use the specific column in the database to filter for metric datapoints (value = “”).
What Alternatives Do I Have in Case of Data Unavailability for a Metric?
Unfortunately, there are no alternatives. You must report something, even if based on a simple assumption or theoretical calculation. If no actual data is available, select the "answer is a proxy" option to flag this datapoint properly. This is crucial for gap analysis and future audits.
Common Metrics to Report:
GHG Assessment
Employee General Information
Salaries
Case 2: The Datapoint is NOT a Metric
What is a Datapoint That is Not a Metric?
These include policies, actions, targets, financial effects, processes, materiality metrics, transition plans, reporting, report preparation, and business models.
What Alternatives Do I Have in Case of Data Unavailability for Non-Metric Datapoints?
Check the “I don’t have the information” option in the datapoint form and confirm its completeness. For now, no further action is required, but you will need to plan for future data provision.
Steps to Follow:
Identify Solutions and Initiatives: During the “ESG Roadmap” stage, outline what solutions and initiatives you will implement in the near and mid-term to obtain the missing information.
Set Timelines: Determine when you will be able to provide the necessary data for CSRD reporting.
These steps will form the core content of the reporting associated with the empty datapoints.
Conclusion
Handling data unavailability effectively is key to maintaining accurate and compliant ESG reporting. By understanding the reasons for data gaps and following the appropriate steps to address them, you can ensure your reporting remains transparent and reliable. Greenly provides the tools and guidance needed to manage these challenges, supporting you in your sustainability journey.
Trust Greenly to help you navigate the complexities of ESG reporting, ensuring you have the knowledge and resources to manage data unavailability and achieve your sustainability goals with confidence.