Performing An ESG Readiness Assessment
An ESG Readiness Assessment is a comprehensive evaluation of your organization’s current business practices that compares those to ESG regulatory requirements to identify any compliance gaps. It covers the areas of Climate Disclosure Readiness, Double Materiality Assessment, and Framework Alignment.
Climate Disclosure Readiness will prepare your organization to comply with the upcoming regulation imposed by the Corporate Sustainability Reporting Directive (CSRD), SEC Enhancement and Standardization of Climate-Related Disclosures, and the California Climate Disclosures (SB 253 and SB 261).
Double materiality expands the concept of materiality in climate and sustainability reporting to how an organization is impacted by sustainability issues (“outside in”) as well as how their activities impact the environment and society (“inside out”). In other words, businesses must consider two perspectives: What is material to them and what is material to society or the planet. This assessment identifies the material/key climate and sustainability metrics material to your organization.
A Framework alignment assesses an organization's adherence to ESG frameworks such as SASB, GRI, TCFD, and ESRS. The outcome of an ESG readiness assessment is to develop a roadmap to enhance or align the organization's current and future climate and sustainability disclosures to meet regulatory requirements as well as build a responsible, sustainable society.
Why is an ESG Readiness Assessment important?
In today’s evolving business landscape, ESG factors and an organization’s carbon footprint have become critical matters amongst legislative bodies across the globe. Recent developments, such as the SEC adopting rules to enhance and standardize climate-related disclosures by public companies and in public offerings, the California Climate Disclosures, as well as within the EU with the CSRD. Companies that are subject to these regulations will need to invest in systems and processes to collect, analyze, calculate, and report climate and sustainability data accurately. Setting up these systems and processes will also enable an organization to be in compliance with future attestation requirements.
How does Workiva do it better?
With this backdrop in mind, it’s no surprise that organizations are evaluating adopting ESG-specific software to enhance their ESG data management, reporting, and disclosure processes. This demand for technology-driven ESG solutions underscores the complexities associated with collecting, analyzing, and reporting climate and sustainability data. Workiva’s ESG solution helps digitize your climate and sustainability reporting by managing material topics and subtopics with the ESG Program, documenting your double materiality assessment, providing audit-ready data collection, and, of course, Workiva’s linking technology. These are just a few of the ways Workiva’s ESG solution simplifies complex work.
How can Eliassen help?
Eliassen can meet you no matter where you are in your ESG journey. If you’re just starting out, an ESG Readiness Assessment is a great first place to start. This roadmap will serve as your guide to establishing and maintaining an effective and efficient ESG reporting process. The value-add services include:
- ESG Readiness Assessment
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- Climate Disclosure Readiness
- Double Materiality Assessment
- Framework Review (CDP, SASB, GRI, ESRS, TCFD)
- Centralized ESG Data Repository
- Data Collection & Workflow Management
- Disclosure Mapping
- Carbon Calculator / Accounting
- Connected & Designed ESG Reporting
- Managed Service for ESG Reporting
- Technology Solutions
- Peer Review & Benchmarking
- Industry Analysis
- ESG Ratings Analysis
