{"id":5085,"date":"2024-10-23T06:42:17","date_gmt":"2024-10-23T06:42:17","guid":{"rendered":"https:\/\/www.balkanservices.com\/blog\/?p=5085"},"modified":"2024-10-23T06:44:38","modified_gmt":"2024-10-23T06:44:38","slug":"who-is-responsible-for-esg-reporting","status":"publish","type":"post","link":"https:\/\/www.balkanservices.com\/blog\/en\/who-is-responsible-for-esg-reporting\/","title":{"rendered":"Who is responsible for ESG reporting?"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\">Who is responsible for ESG reporting?<\/h1>\n\n\n\n<p><em>Can the company&#8217;s accounting department take on new responsibilities, such as calculating the servers&#8217; carbon footprint, or is the way your suppliers operate ethically?<\/em><\/p>\n\n\n\n<p>The overwhelming business answer is yes. A survey conducted by our partners at Lucanet shows that in <strong>50% of cases, finance departments are responsible for ESG reporting.<\/strong><\/p>\n\n\n\n<p><em>And is this the right approach?<\/em> <em>What are the risks of assigning such responsibilities to employees from traditionally more conservative departments?<\/em> <em>And what is the profile of the right &#8222;ESG person&#8220;?<\/em> <em>These questions may sound abstract, but their answers already excite over 50,000 companies in Europe, about 500 in Bulgaria).<\/em><\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-abe0a41\" data-block-id=\"abe0a41\"><style>.stk-abe0a41{height:35px !important}<\/style><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><a href=\"https:\/\/www.balkanservices.com\/eng\/business-software\/esg-software-for-sustainability-reporting\" target=\"_blank\" rel=\"noreferrer noopener\">Sustainability reporting<\/a> is becoming mandatory for more and more companies<\/strong><\/strong><\/h2>\n\n\n\n<p>The need to report on ESG regulations is a new topic that is entering companies&#8217; sights and activities.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-e43e886\" data-block-id=\"e43e886\"><style>.stk-e43e886{height:35px !important}<\/style><\/div>\n\n\n\n<div class=\"wp-block-stackable-icon-label stk-block-icon-label stk-block stk-62e6f06\" data-block-id=\"62e6f06\"><div class=\"stk-row stk-inner-blocks stk-block-content\">\n<div class=\"wp-block-stackable-icon stk-block-icon has-text-align-left stk-block stk-7d466fb\" data-block-id=\"7d466fb\"><style>.stk-7d466fb .stk--svg-wrapper .stk--inner-svg svg:last-child{opacity:0.7 !important}.stk-7d466fb .stk--svg-wrapper .stk--inner-svg svg:last-child,.stk-7d466fb .stk--svg-wrapper .stk--inner-svg svg:last-child :is(g,path,rect,polygon,ellipse){fill:var(--theme-palette-color-1,#F6891F) !important}<\/style><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg style=\"height:0;width:0\"><defs><linearGradient id=\"linear-gradient-7d466fb\" x1=\"0\" x2=\"100%\" y1=\"0\" y2=\"0\"><stop offset=\"0%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-7-d-466-fb-color-1)\"><\/stop><stop offset=\"100%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-7-d-466-fb-color-2)\"><\/stop><\/linearGradient><\/defs><\/svg><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 384 512\" aria-hidden=\"true\" width=\"32\" height=\"32\"><path d=\"M297.2 248.9C311.6 228.3 320 203.2 320 176c0-70.7-57.3-128-128-128S64 105.3 64 176c0 27.2 8.4 52.3 22.8 72.9c3.7 5.3 8.1 11.3 12.8 17.7l0 0c12.9 17.7 28.3 38.9 39.8 59.8c10.4 19 15.7 38.8 18.3 57.5H109c-2.2-12-5.9-23.7-11.8-34.5c-9.9-18-22.2-34.9-34.5-51.8l0 0 0 0c-5.2-7.1-10.4-14.2-15.4-21.4C27.6 247.9 16 213.3 16 176C16 78.8 94.8 0 192 0s176 78.8 176 176c0 37.3-11.6 71.9-31.4 100.3c-5 7.2-10.2 14.3-15.4 21.4l0 0 0 0c-12.3 16.8-24.6 33.7-34.5 51.8c-5.9 10.8-9.6 22.5-11.8 34.5H226.4c2.6-18.7 7.9-38.6 18.3-57.5c11.5-20.9 26.9-42.1 39.8-59.8l0 0 0 0 0 0c4.7-6.4 9-12.4 12.7-17.7zM192 128c-26.5 0-48 21.5-48 48c0 8.8-7.2 16-16 16s-16-7.2-16-16c0-44.2 35.8-80 80-80c8.8 0 16 7.2 16 16s-7.2 16-16 16zm0 384c-44.2 0-80-35.8-80-80V416H272v16c0 44.2-35.8 80-80 80z\"><\/path><\/svg><\/div><\/span><\/div>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-60a1159\" id=\"to-date-businesses-face-many-uncertainties-around-the-organisation-of-the-sustainability-disclosure-process-one-of-these-is-the-answer-to-the-question-strong-what-are-the-strong-strong-key-responsibilities-of-the-esg-reporting-team-strong\" data-block-id=\"60a1159\"><p class=\"stk-block-heading__text\">To date, businesses face many uncertainties around the organisation of the sustainability disclosure process. One of these is the answer to the question, &#8222;<strong>What are the<\/strong> <strong>key responsibilities of the ESG reporting team?&#8220;<\/strong>.<\/p><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-6a126b6\" data-block-id=\"6a126b6\"><style>.stk-6a126b6{height:35px !important}<\/style><\/div>\n\n\n\n<p>Companies with experience in business sustainability reporting have a <strong>different approach regarding the organization and defining roles in the process<\/strong>. When we talk about the competencies and skills of the employees responsible for this process, they should be the same in all companies, namely:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Understand ESG reporting standards<\/strong> and the process of defining material topics;<\/li>\n\n\n\n<li>Be aware of what <strong>information they need to gather <\/strong>as a result of the company&#8217;s material topics assessment;<\/li>\n\n\n\n<li><strong>Know the organizational structure <\/strong>of the company to know who to turn to for data;<\/li>\n\n\n\n<li><strong>To support their colleagues with instructions<\/strong> on the details of the information required, as some of it is presented in quantitative measures, but most of it is qualitative;<\/li>\n\n\n\n<li>To organise the compilation of the information into a form that meets European standards for sustainability reporting and is audit-ready.<\/li>\n<\/ul>\n\n\n\n<p>The main tasks of the ESG Reporting Officer in the organisation will be to carry out coordination and communication on these issues, and on the final straight to submit a report for validation.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-ec4d4ff\" data-block-id=\"ec4d4ff\"><style>.stk-ec4d4ff{height:35px !important}<\/style><\/div>\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\"><a href=\"https:\/\/www.balkanservices.com\/blog\/en\/what-is-esg-and-how-do-you-comply-with-sustainability-reporting-regulations-in-a-timely-manner\/\" target=\"_blank\" rel=\"noreferrer noopener\">Read more: What is ESG and how do you comply with sustainability reporting regulations in a timely manner?<\/a><\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-643674b\" data-block-id=\"643674b\"><style>.stk-643674b{height:35px !important}<\/style><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Which team is responsible for ESG reporting?<\/strong><\/strong><\/h2>\n\n\n\n<p>There is no definitive answer because <strong>companies take different approaches<\/strong> to selecting an employee to monitor the business&#8217;s ESG performance.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-bb8b3bc\" data-block-id=\"bb8b3bc\"><style>.stk-bb8b3bc{height:35px !important}<\/style><\/div>\n\n\n\n<div class=\"wp-block-stackable-icon-label stk-block-icon-label stk-block stk-065f254\" data-block-id=\"065f254\"><div class=\"stk-row stk-inner-blocks stk-block-content\">\n<div class=\"wp-block-stackable-icon stk-block-icon has-text-align-left stk-block stk-31031d5\" data-block-id=\"31031d5\"><style>.stk-31031d5 .stk--svg-wrapper .stk--inner-svg svg:last-child{opacity:0.7 !important}.stk-31031d5 .stk--svg-wrapper .stk--inner-svg svg:last-child,.stk-31031d5 .stk--svg-wrapper .stk--inner-svg svg:last-child :is(g,path,rect,polygon,ellipse){fill:var(--theme-palette-color-1,#F6891F) !important}<\/style><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg style=\"height:0;width:0\"><defs><linearGradient id=\"linear-gradient-31031d5\" x1=\"0\" x2=\"100%\" y1=\"0\" y2=\"0\"><stop offset=\"0%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-31031-d-5-color-1)\"><\/stop><stop offset=\"100%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-31031-d-5-color-2)\"><\/stop><\/linearGradient><\/defs><\/svg><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 384 512\" aria-hidden=\"true\" width=\"32\" height=\"32\"><path d=\"M297.2 248.9C311.6 228.3 320 203.2 320 176c0-70.7-57.3-128-128-128S64 105.3 64 176c0 27.2 8.4 52.3 22.8 72.9c3.7 5.3 8.1 11.3 12.8 17.7l0 0c12.9 17.7 28.3 38.9 39.8 59.8c10.4 19 15.7 38.8 18.3 57.5H109c-2.2-12-5.9-23.7-11.8-34.5c-9.9-18-22.2-34.9-34.5-51.8l0 0 0 0c-5.2-7.1-10.4-14.2-15.4-21.4C27.6 247.9 16 213.3 16 176C16 78.8 94.8 0 192 0s176 78.8 176 176c0 37.3-11.6 71.9-31.4 100.3c-5 7.2-10.2 14.3-15.4 21.4l0 0 0 0c-12.3 16.8-24.6 33.7-34.5 51.8c-5.9 10.8-9.6 22.5-11.8 34.5H226.4c2.6-18.7 7.9-38.6 18.3-57.5c11.5-20.9 26.9-42.1 39.8-59.8l0 0 0 0 0 0c4.7-6.4 9-12.4 12.7-17.7zM192 128c-26.5 0-48 21.5-48 48c0 8.8-7.2 16-16 16s-16-7.2-16-16c0-44.2 35.8-80 80-80c8.8 0 16 7.2 16 16s-7.2 16-16 16zm0 384c-44.2 0-80-35.8-80-80V416H272v16c0 44.2-35.8 80-80 80z\"><\/path><\/svg><\/div><\/span><\/div>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-9634e40\" id=\"a-common-practice-is-to-involve-representatives-from-the-finance-or-accounting-departments-in-the-sustainability-disclosure-process-this-is-generally-because-they-have-experience-in-organising-content-for-reports\" data-block-id=\"9634e40\"><p class=\"stk-block-heading__text\">A common practice is to involve representatives from the finance or accounting departments in the sustainability disclosure process. This is generally because they have experience in organising content for reports.<\/p><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-fb1360b\" data-block-id=\"fb1360b\"><style>.stk-fb1360b{height:35px !important}<\/style><\/div>\n\n\n\n<p>Our observations suggest that this is not good practice from the perspective that these departments deal mainly with data in financial terms, whereas under ESG standards there is a heterogeneous type of information that is included in reports.<\/p>\n\n\n\n<p><strong>There are over 1100 ESG indicators,<\/strong> most of which require information of a qualitative\/textual nature\u2014sharing policies, measures, and targets to reduce negative impacts, plans, and analysis. They address different aspects of the business\u2014ecology, health and safety, human resource management, development, training, cyber security, ethical behaviour, supplier selection, and many more.<\/p>\n\n\n\n<p>In terms of finance and accounting professionals being able to systematize data and perform reporting, engaging with ESG reports can be seen as a good choice. The question in this case is to what extent they can bear new responsibilities, take on new knowledge, and, last but not least, whether they are motivated.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-555c444\" data-block-id=\"555c444\"><style>.stk-555c444{height:35px !important}<\/style><\/div>\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\"><a href=\"https:\/\/www.balkanservices.com\/blog\/en\/the-most-important-esg-indicators-for-cfos\/\" target=\"_blank\" rel=\"noreferrer noopener\">Read more: The most important ESG metrics for CFOs<\/a><\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-c2a802b\" data-block-id=\"c2a802b\"><style>.stk-c2a802b{height:35px !important}<\/style><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Why might finance and accounting departments not be the best choice regarding ESG reporting?<\/strong><\/strong><\/h2>\n\n\n\n<p>The main disadvantage of this practice is that employees in these units are very busy with ongoing tasks and regularly meeting deadlines for data aggregation.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-862e4d0\" data-block-id=\"862e4d0\"><style>.stk-862e4d0{height:35px !important}<\/style><\/div>\n\n\n\n<div class=\"wp-block-stackable-icon-label stk-block-icon-label stk-block stk-db7a220\" data-block-id=\"db7a220\"><div class=\"stk-row stk-inner-blocks stk-block-content\">\n<div class=\"wp-block-stackable-icon stk-block-icon has-text-align-left stk-block stk-ef73146\" data-block-id=\"ef73146\"><style>.stk-ef73146 .stk--svg-wrapper .stk--inner-svg svg:last-child{opacity:0.7 !important}.stk-ef73146 .stk--svg-wrapper .stk--inner-svg svg:last-child,.stk-ef73146 .stk--svg-wrapper .stk--inner-svg svg:last-child :is(g,path,rect,polygon,ellipse){fill:var(--theme-palette-color-1,#F6891F) !important}<\/style><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg style=\"height:0;width:0\"><defs><linearGradient id=\"linear-gradient-ef73146\" x1=\"0\" x2=\"100%\" y1=\"0\" y2=\"0\"><stop offset=\"0%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-ef-73146-color-1)\"><\/stop><stop offset=\"100%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-ef-73146-color-2)\"><\/stop><\/linearGradient><\/defs><\/svg><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 384 512\" aria-hidden=\"true\" width=\"32\" height=\"32\"><path d=\"M297.2 248.9C311.6 228.3 320 203.2 320 176c0-70.7-57.3-128-128-128S64 105.3 64 176c0 27.2 8.4 52.3 22.8 72.9c3.7 5.3 8.1 11.3 12.8 17.7l0 0c12.9 17.7 28.3 38.9 39.8 59.8c10.4 19 15.7 38.8 18.3 57.5H109c-2.2-12-5.9-23.7-11.8-34.5c-9.9-18-22.2-34.9-34.5-51.8l0 0 0 0c-5.2-7.1-10.4-14.2-15.4-21.4C27.6 247.9 16 213.3 16 176C16 78.8 94.8 0 192 0s176 78.8 176 176c0 37.3-11.6 71.9-31.4 100.3c-5 7.2-10.2 14.3-15.4 21.4l0 0 0 0c-12.3 16.8-24.6 33.7-34.5 51.8c-5.9 10.8-9.6 22.5-11.8 34.5H226.4c2.6-18.7 7.9-38.6 18.3-57.5c11.5-20.9 26.9-42.1 39.8-59.8l0 0 0 0 0 0c4.7-6.4 9-12.4 12.7-17.7zM192 128c-26.5 0-48 21.5-48 48c0 8.8-7.2 16-16 16s-16-7.2-16-16c0-44.2 35.8-80 80-80c8.8 0 16 7.2 16 16s-7.2 16-16 16zm0 384c-44.2 0-80-35.8-80-80V416H272v16c0 44.2-35.8 80-80 80z\"><\/path><\/svg><\/div><\/span><\/div>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-5fa751e\" id=\"on-the-other-hand-esg-information-is-heterogeneous-and-there-are-many-details-that-are-far-from-their-remit\" data-block-id=\"5fa751e\"><p class=\"stk-block-heading__text\">On the other hand, ESG information is heterogeneous, and there are many details that are far from their remit.<\/p><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-6beda84\" data-block-id=\"6beda84\"><style>.stk-6beda84{height:35px !important}<\/style><\/div>\n\n\n\n<p>All of this creates the risk that these employees will be put under a lot of stress due to being assigned additional responsibilities, demotivating them and creating tension throughout the organisation.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-139e386\" data-block-id=\"139e386\"><style>.stk-139e386{height:35px !important}<\/style><\/div>\n\n\n<div data-block=\"hook:3908\" class=\"alignfull\" data-block-structure=\"custom\"><div class=\"ct-container-full\" data-content=\"normal\"><article id=\"post-3908\" class=\"post-3908\"><div class=\"entry-content is-layout-constrained\">\n<div class=\"wp-block-media-text alignfull has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center is-image-fill is-style-default has-palette-color-8-color has-palette-color-4-background-color has-text-color has-background has-link-color wp-elements-326cc7970ec94e154d90381fd2939023\" style=\"margin-top:var(--wp--preset--spacing--50);margin-bottom:var(--wp--preset--spacing--50);margin-left:0;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0;grid-template-columns:auto 37%\"><div class=\"wp-block-media-text__content\">\n<h2 class=\"wp-block-heading has-white-color has-text-color\" style=\"margin-top:var(--wp--preset--spacing--40);margin-right:0;margin-bottom:0;margin-left:0\">Looking for business software?<\/h2>\n\n\n\n<p class=\"has-palette-color-8-color has-text-color\" style=\"margin-top:var(--wp--preset--spacing--20);margin-bottom:var(--wp--preset--spacing--20);font-size:clamp(14px, 0.875rem + ((1vw - 3.2px) * 0.234), 17px);line-height:1.5\">Our team is here to listen carefully and offer the right solution for you.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-stackable-button-group stk-block-button-group stk-block stk-088e0d7\" data-block-id=\"088e0d7\"><style>.stk-088e0d7{margin-bottom:30px !important;position:relative !important}@media screen and (max-width:999px){.stk-088e0d7{margin-bottom:36px !important}}<\/style><div class=\"stk-row stk-inner-blocks stk-block-content stk-button-group\">\n<div class=\"wp-block-stackable-button stk-block-button is-style-ghost stk-block stk-cb9bee0\" data-block-id=\"cb9bee0\"><style>.stk-cb9bee0{top:23px !important}.stk-cb9bee0 .stk-button{padding-right:33px !important;padding-left:33px !important;background:var(--theme-palette-color-1,#F6891F) !important}.stk-cb9bee0 .stk-button:hover:after{background:transparent !important;opacity:1 !important}:where(.stk-hover-parent:hover,.stk-hover-parent.stk--is-hovered) .stk-cb9bee0 .stk-button:after{background:transparent !important;opacity:1 !important}.stk-cb9bee0 .stk-button:before{border-style:solid !important;border-color:var(--theme-palette-color-8,#ffffff) !important;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important}.stk-cb9bee0 .stk-button__inner-text{color:var(--theme-palette-color-8,#ffffff) !important}<\/style><a class=\"stk-link stk-button stk--hover-effect-lift\" href=\"https:\/\/www.balkanservices.com\/eng\/contact\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-text-color stk-button__inner-text\">Schedule a free consultation &gt;<\/span><\/a><\/div>\n<\/div><\/div>\n<\/div><figure class=\"wp-block-media-text__media\" style=\"background-image:url(https:\/\/www.balkanservices.com\/blog\/wp-content\/uploads\/2024\/01\/BOO2528-1024x638.jpg);background-position:50% 50%\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"638\" src=\"https:\/\/www.balkanservices.com\/blog\/wp-content\/uploads\/2024\/01\/BOO2528-1024x638.jpg\" alt=\"\" class=\"wp-image-3887 size-full\" srcset=\"https:\/\/www.balkanservices.com\/blog\/wp-content\/uploads\/2024\/01\/BOO2528-1024x638.jpg 1024w, https:\/\/www.balkanservices.com\/blog\/wp-content\/uploads\/2024\/01\/BOO2528-300x187.jpg 300w, https:\/\/www.balkanservices.com\/blog\/wp-content\/uploads\/2024\/01\/BOO2528-768x478.jpg 768w, https:\/\/www.balkanservices.com\/blog\/wp-content\/uploads\/2024\/01\/BOO2528-1536x957.jpg 1536w, https:\/\/www.balkanservices.com\/blog\/wp-content\/uploads\/2024\/01\/BOO2528-2048x1276.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p><\/p>\n<\/div><\/article><\/div><\/div>\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-04be1a3\" data-block-id=\"04be1a3\"><style>.stk-04be1a3{height:35px !important}<\/style><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Competencies of the internal &#8222;ESG person.&#8220;<\/strong><\/strong><\/h2>\n\n\n\n<p>In our observation, for larger companies and those with more companies and production activities at different points, the better practice would be to have a person in charge who is solely dedicated to ESG reporting and ESG activities.<\/p>\n\n\n\n<p>If the company decides to assign these responsibilities to an employee, <strong>the employee needs to have the following skills<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Good organisational and communication skills;<\/strong><\/li>\n\n\n\n<li><strong>Flexibility and adaptability<\/strong> to change (the regulatory framework is constantly being upgraded in terms of reporting);<\/li>\n\n\n\n<li><strong>Good knowledge of the organisation&#8217;s processes<\/strong> &#8211; be familiar with the business strategy, applicable policies and plans, and have a very good understanding of the organisational structure and responsibilities of individual team members.<\/li>\n<\/ul>\n\n\n\n<p>In case this employee does not have ESG reporting competencies, it is important that he\/she builds more knowledge by familiarizing himself\/herself with the CSRD (Corporate Sustainability Reporting Directive), the EU Taxonomy and the ESRS (European Sustainability Reporting Standards).<\/p>\n\n\n\n<p>Without knowledge of the European regulatory framework for ESG reporting and monitoring its development, fulfilling this role would be very challenging.<\/p>\n\n\n\n<p>In addition to creating this function, companies can improve processes by providing the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Clear communication <\/strong>from management to all those affected by the process to understand the need for reporting;<\/li>\n\n\n\n<li><strong>Training of the functions that manage data sources and processes<\/strong>. It should be clear what type of information needs to be collected, whether systems need to be re-tuned and how to document this process. Technology solutions also need to be used for this purpose in some cases.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-02c288c\" data-block-id=\"02c288c\"><style>.stk-02c288c{height:35px !important}<\/style><\/div>\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\"><a href=\"https:\/\/www.balkanservices.com\/blog\/en\/esg-reporting-in-practice-examples-and-new-aspects\/\" target=\"_blank\" rel=\"noreferrer noopener\">Read more: ESG reporting in practice \u2013 examples and new aspects<\/a><\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-7635fdf\" data-block-id=\"7635fdf\"><style>.stk-7635fdf{height:35px !important}<\/style><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>External ESG consultant<\/strong><\/strong><\/h2>\n\n\n\n<p>If the company decides to bring a new person into the ESG reporting process, they will need to get to know the internal organization, business processes and operations of the enterprise well. <strong>In this case, it is beneficial if the employee has experience in reporting on sustainability topics.<\/strong> This will give the new person the opportunity to focus on getting to know the company.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-83ca391\" data-block-id=\"83ca391\"><style>.stk-83ca391{height:35px !important}<\/style><\/div>\n\n\n\n<div class=\"wp-block-stackable-icon-label stk-block-icon-label stk-block stk-465d17f\" data-block-id=\"465d17f\"><div class=\"stk-row stk-inner-blocks stk-block-content\">\n<div class=\"wp-block-stackable-icon stk-block-icon has-text-align-left stk-block stk-a7025ad\" data-block-id=\"a7025ad\"><style>.stk-a7025ad .stk--svg-wrapper .stk--inner-svg svg:last-child{opacity:0.7 !important}.stk-a7025ad .stk--svg-wrapper .stk--inner-svg svg:last-child,.stk-a7025ad .stk--svg-wrapper .stk--inner-svg svg:last-child :is(g,path,rect,polygon,ellipse){fill:var(--theme-palette-color-1,#F6891F) !important}<\/style><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg style=\"height:0;width:0\"><defs><linearGradient id=\"linear-gradient-a7025ad\" x1=\"0\" x2=\"100%\" y1=\"0\" y2=\"0\"><stop offset=\"0%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-a-7025-ad-color-1)\"><\/stop><stop offset=\"100%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-a-7025-ad-color-2)\"><\/stop><\/linearGradient><\/defs><\/svg><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 384 512\" aria-hidden=\"true\" width=\"32\" height=\"32\"><path d=\"M297.2 248.9C311.6 228.3 320 203.2 320 176c0-70.7-57.3-128-128-128S64 105.3 64 176c0 27.2 8.4 52.3 22.8 72.9c3.7 5.3 8.1 11.3 12.8 17.7l0 0c12.9 17.7 28.3 38.9 39.8 59.8c10.4 19 15.7 38.8 18.3 57.5H109c-2.2-12-5.9-23.7-11.8-34.5c-9.9-18-22.2-34.9-34.5-51.8l0 0 0 0c-5.2-7.1-10.4-14.2-15.4-21.4C27.6 247.9 16 213.3 16 176C16 78.8 94.8 0 192 0s176 78.8 176 176c0 37.3-11.6 71.9-31.4 100.3c-5 7.2-10.2 14.3-15.4 21.4l0 0 0 0c-12.3 16.8-24.6 33.7-34.5 51.8c-5.9 10.8-9.6 22.5-11.8 34.5H226.4c2.6-18.7 7.9-38.6 18.3-57.5c11.5-20.9 26.9-42.1 39.8-59.8l0 0 0 0 0 0c4.7-6.4 9-12.4 12.7-17.7zM192 128c-26.5 0-48 21.5-48 48c0 8.8-7.2 16-16 16s-16-7.2-16-16c0-44.2 35.8-80 80-80c8.8 0 16 7.2 16 16s-7.2 16-16 16zm0 384c-44.2 0-80-35.8-80-80V416H272v16c0 44.2-35.8 80-80 80z\"><\/path><\/svg><\/div><\/span><\/div>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-4ae8452\" id=\"it-is-an-established-practice-to-use-a-href-https-www-balkanservices-com-eng-services-esg-consulting-target-blank-rel-noreferrer-noopener-consultancy-services-a-in-the-early-reporting-periods-until-the-company-has-oriented-itself-from-the-amount-of-work-and-time-required-gone-through-the-different-reporting-steps-and-has-clarity-on-what-resources-are-needed-to-achieve-the-result\" data-block-id=\"4ae8452\"><p class=\"stk-block-heading__text\">It is an established practice to use <a href=\"https:\/\/www.balkanservices.com\/eng\/services\/esg-consulting\" target=\"_blank\" rel=\"noreferrer noopener\">consultancy services<\/a> in the early reporting periods until the company has oriented itself from the amount of work and time required, gone through the different reporting steps and has clarity on what resources are needed to achieve the result.<\/p><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-b30ae81\" data-block-id=\"b30ae81\"><style>.stk-b30ae81{height:35px !important}<\/style><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>One person or a team?<\/strong><\/strong><\/h2>\n\n\n\n<p>Companies required to report under the CSRD also have another crucial decision: <em>&#8216;<strong>How many employees will they need to keep &#8216;up to date&#8217; with European sustainability reporting standards?&#8217;<\/strong><\/em><\/p>\n\n\n\n<p>In our experience, in large companies (as defined by the Accounting Act) one employee can handle the commitments around ESG reporting. In large holding companies, however, one person may not be enough.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-0275ec7\" data-block-id=\"0275ec7\"><style>.stk-0275ec7{height:35px !important}<\/style><\/div>\n\n\n\n<div class=\"wp-block-stackable-icon-label stk-block-icon-label stk-block stk-21e920c\" data-block-id=\"21e920c\"><div class=\"stk-row stk-inner-blocks stk-block-content\">\n<div class=\"wp-block-stackable-icon stk-block-icon has-text-align-left stk-block stk-f4f9307\" data-block-id=\"f4f9307\"><style>.stk-f4f9307 .stk--svg-wrapper .stk--inner-svg svg:last-child{opacity:0.7 !important}.stk-f4f9307 .stk--svg-wrapper .stk--inner-svg svg:last-child,.stk-f4f9307 .stk--svg-wrapper .stk--inner-svg svg:last-child :is(g,path,rect,polygon,ellipse){fill:var(--theme-palette-color-1,#F6891F) !important}<\/style><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg style=\"height:0;width:0\"><defs><linearGradient id=\"linear-gradient-f4f9307\" x1=\"0\" x2=\"100%\" y1=\"0\" y2=\"0\"><stop offset=\"0%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-f-4-f-9307-color-1)\"><\/stop><stop offset=\"100%\" style=\"stop-opacity:1;stop-color:var(--linear-gradient-f-4-f-9307-color-2)\"><\/stop><\/linearGradient><\/defs><\/svg><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 384 512\" aria-hidden=\"true\" width=\"32\" height=\"32\"><path d=\"M297.2 248.9C311.6 228.3 320 203.2 320 176c0-70.7-57.3-128-128-128S64 105.3 64 176c0 27.2 8.4 52.3 22.8 72.9c3.7 5.3 8.1 11.3 12.8 17.7l0 0c12.9 17.7 28.3 38.9 39.8 59.8c10.4 19 15.7 38.8 18.3 57.5H109c-2.2-12-5.9-23.7-11.8-34.5c-9.9-18-22.2-34.9-34.5-51.8l0 0 0 0c-5.2-7.1-10.4-14.2-15.4-21.4C27.6 247.9 16 213.3 16 176C16 78.8 94.8 0 192 0s176 78.8 176 176c0 37.3-11.6 71.9-31.4 100.3c-5 7.2-10.2 14.3-15.4 21.4l0 0 0 0c-12.3 16.8-24.6 33.7-34.5 51.8c-5.9 10.8-9.6 22.5-11.8 34.5H226.4c2.6-18.7 7.9-38.6 18.3-57.5c11.5-20.9 26.9-42.1 39.8-59.8l0 0 0 0 0 0c4.7-6.4 9-12.4 12.7-17.7zM192 128c-26.5 0-48 21.5-48 48c0 8.8-7.2 16-16 16s-16-7.2-16-16c0-44.2 35.8-80 80-80c8.8 0 16 7.2 16 16s-7.2 16-16 16zm0 384c-44.2 0-80-35.8-80-80V416H272v16c0 44.2-35.8 80-80 80z\"><\/path><\/svg><\/div><\/span><\/div>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-1df4310\" id=\"in-any-case-strong-sustainability-reporting-will-affect-other-employees-in-the-organisation-strong-specifically-these-are-the-people-who-have-different-types-of-data-within-the-company\" data-block-id=\"1df4310\"><p class=\"stk-block-heading__text\">In any case, <strong>sustainability reporting will affect other employees in the organisation<\/strong>. Specifically, these are the people who have different types of data within the company.<\/p><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-855197e\" data-block-id=\"855197e\"><style>.stk-855197e{height:35px !important}<\/style><\/div>\n\n\n\n<p>When we talk about production processes, most companies have employees who deal with environmental issues. These are the specialists who provide data to the ESG coordinator related to the five main environmental topics.<\/p>\n\n\n\n<p>Other examples are the representatives of the Human Resources department and the Health and Safety department. They provide information on the core reporting standard &#8222;Own Workforce&#8220; on which each company reports.<\/p>\n\n\n\n<p>In turn, companies&#8217; legal departments can provide information relating to data protection and anti-corruption policies.<\/p>\n\n\n\n<p>The procurement department would be best placed to assess its suppliers, provide data on them and also on the policies that are applied when selecting suppliers, for example, are environmental and social selection criteria in place.<\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-59d32f3\" data-block-id=\"59d32f3\"><style>.stk-59d32f3{height:35px !important}<\/style><\/div>\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\"><a href=\"https:\/\/www.balkanservices.com\/blog\/en\/what-is-esg-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">Read more: What is ESG software? <\/a><\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-3cc7fbc\" data-block-id=\"3cc7fbc\"><style>.stk-3cc7fbc{height:35px !important}<\/style><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>In conclusion<\/strong><\/strong><\/h2>\n\n\n\n<p>We can summarise that there is no universal answer to the question &#8222;Who in the company is responsible for ESG reporting?&#8220;. It is a <strong>multidisciplinary process <\/strong>involving different functions depending on the company&#8217;s activities. Each company needs to understand what the process means to them and how it impacts the organisation<em>.<\/em><\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-dc52ca6\" data-block-id=\"dc52ca6\"><style>.stk-dc52ca6{height:35px !important}<\/style><\/div>\n\n\n\n<div class=\"wp-block-stackable-divider alignwide stk-block-divider stk-block stk-43063b8\" data-block-id=\"43063b8\"><hr class=\"stk-block-divider__hr\"\/><\/div>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-stackable-spacer stk-block-spacer stk--no-padding stk-block stk-156ac0f\" data-block-id=\"156ac0f\"><style>.stk-156ac0f{height:35px !important}<\/style><\/div>\n\n\n\n<p>No business nowadays can grow and be competitive without the use of IT systems. Choosing the right software solution and implementing it is a complex, difficult but critically important decision.<\/p>\n\n\n\n<p>At Balkan Services we have expert knowledge of business, technology and legislation, and we speak all three languages. We will listen carefully and advise you on choosing the right business system for your needs.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.balkanservices.com\/eng\/contact\" target=\"_blank\" rel=\"noreferrer noopener\">Contact us &gt;<\/a><\/div>\n<\/div>\n\n\n\n<p>Balkan Services has been supporting businesses on their digital transformation journey since 2006. We have already helped over 390 companies digitize their businesses by implementing well-established software solutions and managing IT infrastructure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who is responsible for ESG reporting? Can the company&#8217;s accounting department take on new responsibilities, such as calculating the servers&#8217; carbon footprint, or is the way your suppliers operate ethically? The overwhelming business answer is yes. A survey conducted by our partners at Lucanet shows that in 50% of cases, finance departments are responsible for [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":5088,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[259],"tags":[],"class_list":["post-5085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-esg"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Who is responsible for ESG reporting? - Balkan Services<\/title>\n<meta name=\"description\" content=\"Why ESG reporting is important, who is responsible for it, which departments are involved and why, what competencies are needed, see in our blog &gt;\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.balkanservices.com\/blog\/en\/who-is-responsible-for-esg-reporting\/\" \/>\n<meta property=\"og:locale\" content=\"bg_BG\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Who is responsible for ESG reporting? - Balkan Services\" \/>\n<meta property=\"og:description\" content=\"Why ESG reporting is important, who is responsible for it, which departments are involved and why, what competencies are needed, see in our blog &gt;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.balkanservices.com\/blog\/en\/who-is-responsible-for-esg-reporting\/\" \/>\n<meta property=\"og:site_name\" content=\"\u0411\u043b\u043e\u0433\u044a\u0442 \u0437\u0430 \u0434\u0438\u0433\u0438\u0442\u0430\u043b\u0438\u0437\u0430\u0446\u0438\u044f \u043d\u0430 Balkan Services\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-23T06:42:17+00:00\" \/>\n<meta property=\"article:modified_time\" 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