The ESG disclosure judgement process comprises three process steps (evaluate, decide, document) and six key question. The process steps and key questions offer a simple, clear and practical way of optimizing confidence in externally reported ESG information. The key questions are:
1. Why report ESG information?
2. For whom should ESG information be reported?
3. Where should ESG information be reported?
4. What ESG information should be reported?
5. How should ESG information be prepared and presented?
6. How much ESG information should be reported?
OUR REPORTING SUPPORT
Decisions about the type of ESG information to report as well as why and how companies should prepare the information, where they should report it and for whom, are based on the evaluations and judgements management makes when assessing the different options available to them. IPEF will support you in the correct selection of reporting principles and accompany you throughout the entire operational process.
Definition of Metrics and Data Transparency
Metric definitions, standard protocols and measurements
Compliance with relevant external standards
Alignment of assumptions, projections, measurements and the use of conversion factors in calculations
Protocol for avoiding aggregations-and conversion errors
Scope of Consolidation and Reporting Scope
Consistent scope of consolidation and reporting period with key financial figures
Specification of ‘consolidation groups’, e.g. ensuring alignment on which locations are relevant for collection of environmental, social & governance indicators
Roles and Responsibilities
Clear allocation and definition of ownership and responsibilities
Formal procedures to ensure sufficient knowledge-sharing
Internal Control Systems
Formal and operational control systems for non-financial key metrics
Design –Controls are designed to address the risk of false statements
Implementation –Ensuring that the controls are correctly implemented
Operating Effectiveness –Ensuring that the controls are working optimally