Complying with the ESRS will require a substantial effort from multiple staff members and eventually involve most of your organisation. Even if you do not have to complete a full ESG report for 2024, it makes sense to begin preparing your record keeping now and spread the workload over time. And of course, you may have partners or suppliers who do need to complete a comprehensive ESRS report and they will need information from you to do so.

The first step is to establish a Green Team (or similar title) that will be responsible for planning, executing, monitoring and submitting the organisation’s ESRS report. The Green Team must have at least one person with executive authority (normally at board level), management representatives from all major functional areas and who all possess strong critical-thinking skills.

Simultaneously, two important processes must begin; Human Resources must update all workforce records and ensure an effective Diversity, Equity and Inclusion (DEI) system is in place, and, senior management develops a clear ESG policy and ensures that it is reflected in all organisational policy and governance documents. Both of these tasks typically take multiple months to complete so it is essential that they begin as soon as possible after the formation of the Green Team.

The first major decision or recommendation the Green Team must make is the choice of ESG reporting software. It is worth considering a number of alternatives. The software needs to contain an easy to use and intuitive system for categorising relevant information for each of the reporting criteria and specific indicators. You may well need a system that is compliant with other standards and reporting criteria, especially if you have international subsidiaries or partnerships. It is also critical that you have access to skilled guidance on how to implement the reporting system and embed it wherever possible to ensure efficiencies. There are many features that you may need to consider, so please get in touch for a free consultation call.

The next step for the Green Team is to build your Greenhouse Gas (GHG) inventory. This involves identifying, categorising and quantifying each source and importance scale of each GHG emission associated with your organisation. So, this includes all internal (Scope 1 and 2) and external (Scope 3) emissions as well as defining all risks and opportunities associated with each emission. While building the GHG inventory, you will need to identify a GHG Baseline Year for which you have comprehensive records and is since 2015. The goal is to comprehensively monitor and report your organisations interface with climate change through a scenario and resilience analysis that allows you to set target emission levels and establish a transparent transition plan to reach net zero emissions before 2050.