EFRAG & BCG publish report on best practices in ESRS reporting

The report published by EFRAG and BCG in July 2024, based on interviews and surveys with 28 companies, highlights the following key insights:

• Double Materiality Analysis (DMA):
  Most companies see the strategic value in an objective, evidence-based DMA for ESG reporting and management priorities, aligning with ESRS standards.
  • Around 85% plan to integrate ESG reporting and DMA results into their business strategy and decision-making.
  • About 70% are implementing data-driven approaches for DMA, supported by internal experts and stakeholder input.
• Data Points:
  Many companies have yet to integrate DMA results into their gap analysis, potentially leading to over-reporting.
  • Approximately 80% face challenges in data collection for environmental, social, and governance areas.
  • Around 95% use Implementation Guideline 3 for their gap analysis.
• Value Chain:
  Value chain mapping is still under development, aiming to extend beyond Tier 1 in future cycles.
  • About 90% are refining their value chain mapping to achieve the right level of detail.
  • Approximately 45% have introduced more detailed mapping, including operations as well as upstream and downstream areas.
• ESG Reporting Approaches:
  • Increased cross-functional collaboration (sustainability, finance, risk, IT, and business units).
  • Focus on standardizing ESG reporting processes and enhancing data quality controls.
  • ESG reporting responsibility is evolving: around 65% assign it to a single function, while about 35% follow a co-leadership model.
  • Roughly 85% recognize the need for IT transformation.

The full study can be found here.