Partner
Consultant, Sustainability Auditor IDW
SAP data power for your sustainability reporting: Using SAP data for ESG Performance Management
- High manual effort in ESG data collection and consolidation
- Strict ESRS requirements demand complete, auditable data
- Inconsistent data sources complicate standardized processing
- Despite the regulatory situation, external stakeholders are demanding comprehensive ESG information
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Despite the current regulatory uncertainty surrounding EU sustainability reporting, many companies continue to collect ESG data – not least because the information requirements of banks, customers and suppliers remain high. However, aligning with the ESRS presents companies with significant challenges: the data must not only be complete and auditable, but in many cases must be collected, consolidated and processed manually according to uniform specifications. What makes this process so complex?
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ESG data is rarely available centrally. It is scattered across different systems and is often only available at group level and not at subsidiary level. In addition, many companies do not know where the relevant raw data is located in their own IT landscapes. A reporting tool cannot solve this problem either, as it does not know the relevant interfaces in the company-specific ERP landscape. Instead of using existing information, data is collected anew and manually – a process that is time-consuming, error-prone and expensive. The complexity increases further because individual ESRS data points consist of a large number of values that have to be bundled, converted and calculated according to strict specifications. This not only leads to high costs, but also to uncertainties in data quality and makes it difficult to use the collected information strategically.
An exemplary example of the complexity of ESG data collection is the collection of the number of lost days due to work-related injuries according to ESRS standards. In order to determine this value correctly, companies must merge various data sources: quantitative values such as lost days, qualitative information on the company-specific definition of injuries, master data on the type of contract and employment period, and sometimes external databases where estimates are necessary. In addition, there are calculation steps such as conversion into full-time equivalents and adjustment of the calculation for part-time employees. Only after this multi-stage processing does a reliable key figure for reporting emerge.
The result: high expenditure of time and money and uncertainty regarding data quality. Companies underestimate how much relevant data already exists in their existing IT systems – for example, in purchasing documents, supplier data or employee master data. Companies underestimate this potential – and thus give away efficiency. This also applies to the information content of the data, which often remains unused. Over 200 quantitative data points are collected for a typical CSRD report. This data contains wasted strategic value if it is not also used for internal control. Companies could use the same data to make more informed operational decisions, identify risks early on and manage their ESG performance throughout the year.
Together with the experts for SAP data analysis at dab, RÖDL has developed a solution that addresses these challenges:
The ESG KPI Dashboard with ESRS-to-SAP Mapping turns complex requirements into an automated, audit-proof process that displays ESG data in a control dashboard. The idea is simple: We use SAP data that already exists and transform it into ESRS-compliant key figures – directly from your SAP system. These are transferred to a control dashboard and used for monitoring and control – at group and sub-group level.
The dashboard is structured as follows: first, the system-side assignment of SAP data objects to the required ESRS data points takes place. The relevant information is then extracted, enriched with external databases and bundled in a central data lake. There, they are standardized, converted into common units and calculated according to ESRS specifications. The result is reliable KPIs that can not only be used for CSRD-compliant reporting, but are also available for ESG performance management throughout the year.
The advantages are obvious: Automated data extraction reduces manual effort and increases data quality. The complete documentation ensures traceability and auditability. And the visualization in the dashboard creates real added value – for all levels of the company.
How does the ESG dashboard from dab x RÖDL work?
The calculated key figures are displayed as KPIs in the dashboard. Companies receive a clear overview of all ESG-relevant data. The visualization not only enables the creation of a CSRD-compliant sustainability report, but also the analysis and management of ESG performance throughout the year.
What functions does the dashboard have?
The dashboard provides three specific added values: it supports companies in transferring ESG data from existing SAP systems into audit-proof, ESRS-compliant key figures. Through precise mapping, automated data extraction and a powerful dashboard, not only is transparency created for reporting, but also a solid basis for the operational and strategic management of your ESG performance.
Our added value is clear: we know where relevant data sources lie in your existing SAP system. This mapping enables us to make system-side and efficiently consolidated data usable for ESG requirements.
Why is the ESG Performance Management Dashboard particularly relevant for your company?
Our solution is aimed at medium-sized and large companies that use SAP and want to collect their ESG data efficiently and in an audit-proof manner. You benefit particularly if you need ESG key figures for performance management during the year and do not want to leave the strategic advantages of this data unused. If you want to reduce high manual effort in data collection and value automation, data quality and traceability, this solution is exactly the right one for you.
If you are interested in our mapping solution and the ESG Performance Management Dashboard, please do not hesitate to contact us – we are currently looking for a pilot partner to further develop the solution together.