Overview
While many organizations adhere to a calendar year for Environmental, Social, and Governance (ESG) reporting, there are notable exceptions that choose a bi-annual reporting cycle. This can pose unique challenges, especially in the context of compliance with global frameworks such as the Sustainable Finance Disclosure Regulation (SFDR) in the EU.
EU Regulations for SFDR
The SFDR mandates that financial market participants report ESG metrics on a calendar year basis. To align with this requirement, the KEY ESG portal inherently supports calendar year reporting. This is crucial for ensuring compliance with SFDR’s rigorous disclosure standards.
Leveraging KEY ESG’s In-Platform Reporting
Despite the calendar year requirement, KEY ESG provides flexible tools to accommodate various reporting cycles:
Monthly Performance Reporting: Users can leverage in-platform reporting to monitor monthly performance. These reports can be downloaded and used to address any off-cycle reporting needs, providing a continuous view of ESG metrics throughout the year.
Custom Cadence for Operational Data: For dynamic operational data points, such as emissions, users have the flexibility to set their own reporting cadence. It is advisable to opt for monthly data ingestion to maximize flexibility and ensure data granularity.
Static Annual Metrics: For metrics that are static and typically reported annually, like ‘Employee Survey’, 'UNGC principles' or 'OECD guidelines', the platform restricts input to an annual calendar basis. The KEY ESG team recommends clear communication with your data contributors as to which reporting cycle you are adhering to.
User-Centric and Agile Development
KEY ESG is designed with user needs at the forefront. The platform's agile development approach means it continuously evolves based on user feedback. If you encounter limitations with non-calendar year reporting or have specific requirements, you are encouraged to reach out to the support team at support@keyesg.com or via the in-app chat function. Your feedback is invaluable in enhancing the platform to better meet diverse reporting needs.
Conclusion
Navigating bi-annual ESG reporting within the constraints of frameworks like SFDR can be complex, but with the right tools and strategies, it is manageable. KEY ESG offers robust features to support various reporting cycles while ensuring compliance with mandatory regulations. By utilizing its flexible reporting capabilities and providing feedback for further improvement, users can optimize their ESG reporting processes effectively.