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5 non-financial reporting challenges that CSR professionals are facing

Whether your goal is to improve your data collection efficiencies, increase the depth and detail of your analysis or have a better understanding of what is happening on both a macro and micro level, there are some real challenges that CSR professionals are facing.

How to Choose the Right Framework for your Non-Financial Reporting

Selecting the right sustainability framework for your non-financial reporting can sometimes be a challenge. While there are several compelling reasons for organisations to report on their non-financial performance, including mandatory reporting requirements and opportunities to enhance company reputation, there is little guidance available when it comes to selecting the best sustainability framework for your reporting requirements.

How to choose the right non-financial reporting framework

The non-financial reporting landscape can appear crowded and confusing, particularly when it comes to choosing the right non-financial reporting framework for your organisation.

While reporting non-financial performance has become increasingly important for organisations, it’s also, if anything, become more complex. The need to navigate through a wide range of definitions, timescales and expectations puts pressure on individuals and organisations to make the right choice when it comes to selecting a reporting framework. They need to understand their reporting requirements and choose the most appropriate reporting framework. 

There are many clear reasons for organisations to report on their non-financial performance, including legal requirements, reputation enhancement and opportunities to identify saving opportunities. But these reasons alone don’t necessarily help when it comes to choosing the right reporting framework to use.

How can software help with your CSR reporting?

For modern organisations, working with a wide range of data is a reality. When it comes to CSR reporting this is certainly true. But having the right structure in place to collect, manage and analyse this data can be the difference between it being a smooth process or an organisational challenge. There are many ways that investing in non-financial reporting software can help with CSR Reporting, supporting the growing requirements of non-financial reporting and providing companies with increased confidence in their data.

5 questions to ask when researching non-financial reporting software

When starting to review your options for non-financial reporting software, it can be difficult to know where to start. How can you be sure you’re investing in the right software for your company? How can you know that it is going to help you to achieve your sustainability goals? 

While the answer will depend on your industry and your strategy, there are some common considerations. Here are a few tips as to how to make the right decision.

What are you looking for in your non-financial reporting software?

3 common myths about using spreadsheets for non-financial reporting

Did you know that an estimated 88% of spreadsheets contain errors [Source: Marketwatch]. So, why is it then that many organisations are still using spreadsheets for their non-financial reporting? 

Spreadsheets are perceived as an easy, quick and accessible solution. Unfortunately, this isn’t always the case; for many organisations the reverse its true. In some instances, the myths surrounding spreadsheets are preventing CSR professionals from making an accurate, data-driven decision.

4 signs you should invest in non-financial reporting software

Companies have not always invested in robust systems for managing and analysing their non-financial data. Yet, as a result of growing non-financial reporting requirements, companies need greater confidence in their data accuracy. On top of this, there is a rising expectation that companies will use their data to improve their performance over time. All of this can be a challenge, without the right structures in place. 

It may, therefore, be time to reconsider the role non-financial reporting software could have in your organisation. Here are four signs that it’s time to introduce software to your non-financial reporting.

The implications of the new EU directive on non-financial reporting

When the European Union adopts a new directive on non-financial and diversity information, the world of CSR and affected companies both have to respond.  Company Secretaries and CSR professionals will need to react to this new directive and learn how to revise and adapt their strategy accordingly.  Quickly understanding the implications of the new directive and its impact need to be a priority.

Who will this new directive on non-financial information affect?

The directive, which has a report or explain approach to providing the required information, is intended to provide greater transparency and accountability of non-financial information.  It will affect large companies operating in the EU (those with over 500 employees) – approximately 6000 so-called ‘Public Interest Entities’.

Investors’ survey highlights use of non-financial data in investment decisions

A recent report published by Ernst & Young examined the increasing use of non-financial reporting data by investors.  Over the past 12 months, 9 out of 10 investors surveyed found that non-financial performance information played a crucial role at least once in their decision-making.  

Investors highlighted materiality and a link to financial performance as two key factors they looked for when reviewing ESG data.  Geographic locations had a significant impact on the frequency with which non-financial information was used. Over 70% of respondents based in emerging markets frequently or occasionally used non-financial data, compared with only 49% of those in developed markets. Non-financial reporting was considered to be particularly relevant in the mining, energy and industrial sectors.

Recommendations: Stock Exchange & Corporate Sustainability Reporting

More than a hundred institutional investors have developed recommendations for integrating disclosure on environmental and social issues into listing rules for stock exchanges worldwide. The proposal, released on 26^th March by sustainability advocacy group Ceres, is part of an effort to develop a common standard for sustainability reporting for listed companies globally.