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Transforming ESG reporting from compliance responsibility to strategic advantage

Julie Kae, VP Sustainability and DEIB, Executive Director of Qlik.org

It’s not an easy time to be responsible for a company’s Environmental, Social, and
Governance (ESG) initiatives. The world is changing around us quickly,, driven by ever-
present climate change, ethical consumerism, and expectations of corporate transparency.
The ESG benchmark for businesses is only getting higher.

Some organizations assume they are meeting it, but this is based on internal perceptions of
voluntary standards. Before long, there will be nowhere to hide. The introduction of
mandatory reporting requirements — such as the CSRD (Corporate Sustainability Reporting
Directive) — increase pressure to comply with regulations, deliver on commitments made, and
report tangible impact. ESG compliance has never been more complex.

Now let’s be clear — ESG officers are in their roles because they want to make a difference.
But there is increasing scrutiny from regulators and wider society around how organizations
report this impact. As we hear from our customers, this means they are spending more time
focusing on data and compliance, both inside their own businesses or across the supply
chain.

This shift has prompted a fundamental rethink of how ESG data is managed. At the same
time, we are seeing businesses change their perception of regulatory compliance from a
tick-box exercise to an issue of commercial strategy — a company-wide imperative that can
impact the bottom line. It’s time to streamline the reporting process, so ESG teams can get
back to achieving the impact they set out to makein the first place.

In this context, organizations have a significant task on their hands: identify the right data
from disparate sources, structured or unstructured, and ensure it is as accurate and
accessible as possible for internal and external stakeholders. This process can seem
daunting, particularly for those creating an ESG reporting framework from scratch. But it
doesn’t have to be. Manually collecting vast volumes of data is yesterday’s problem — with AI
at the center of this evolution. Rather than isolating ESG from other business initiatives,
considering as a pillar of digital transformation allows those responsible to benefit from some
of the advanced tools used for other types of reporting and reduces the compliance burden.

Looking beyond regulatory compliance, though, the opportunity is much greater. If
traditional ESG reporting has been a backwards-looking process, the power of AI and
predictive data techniques allows progressive organizations to evaluate information in real time. This enables proactive decisions to save money, time, and the planet. Reporting is
getting an image makeover, from unavoidable admin to something at the heart of company
strategy.

We find ourselves at a tipping point where organizations have a choice: treat ESG as a
burden to be alleviated as quickly as possible, or take steps to embed it in the fabric of the
business to drive meaningful change.

(2024-2029)

Regulatory Roadmap

See what’s on the horizon to practise proactive compliance and stay ahead of ESG regulatory deadlines.

2024

2025 (1/2)

2025 (2/2)

2026

2027

2028

2029

Europe

Corporate Sustainability Reporting Directive (CSRD) takes effect for large public-interest companies

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United Kingdom

Mandatory climate-related financial disclosures for certain companies and LLPs

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United States

SEC's proposed climate disclosure rules expected to be finalized

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Europe

CSRD extends to all large companies

Global

IFRS Sustainability Disclosure Standards expected to be widely adopted

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United States

First reporting year for SEC climate disclosure rules (if finalized in 2024)

Australia

Government expected to introduce mandatory climate-related financial disclosures

APAC

Jurisdictions expected to consider incorporating ISSB sustainability disclosure standards

(Hong Kong, Japan and Singapore)

Singapore

Annual sustainability report made mandatory for additional industries

Europe

Corporate Sustainability Reporting Directive (CSRD) takes effect for large public-interest companies

United Kingdom

Biodiversity Net Gain requirements become mandatory for new developments

View Source

China

Companies listed on major Chinese stock exchanges expected to be required to submit sustainability reports for the first time

Global

Task Force on Nature-related Financial Disclosures (TNFD) framework expected to be widely adopted

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Europe

Full implementation of the European Green Deal expected

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Global

Review and potential update of the UN Sustainable Development Goals (SDGs)

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United States

California’s climate disclosure laws, SB 253 and SB 251, require companies to report Scope 3 emissions

View Source

Europe

Potential revision and expansion of the EU Taxonomy for sustainable activities

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Global

Expected widespread adoption of Science-Based Targets initiative (SBTi) Net-Zero Standard

View Source

Europe

Review and potential update of the European Climate Law

View Source

Global

Midpoint review of progress towards 2030 climate targets under the Paris Agreement

View Source
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Download the whitepaper

What’s holding you back from effective Environmental, Social and Governance (ESG) reporting? Whether it’s availability of data, overcomplicated reporting processes or internal culture, the best solutions are usually simple.

This whitepaper includes:

  • 5 key steps to creating an effective ESG reporting framework
  • A regulatory roadmap to keep your organization one step ahead
  • Practical guidance on where Qlik’s ESG data solutions can help

Download now to accelerate your journey with AI and demystify regulatory compliance, by making ESG reporting a strategic imperative.

Your journey has begun

You’ve taken your first step to harnessing ESG data. Now it’s time to explore how AI could revolutionize how you report it.

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