Here is my look at ESG and Sustainability Reporting.

1. Introductory to ESG and
Sustainability Reporting
Pre-Sales Consultant
Paul Young CPA CGA
April 23, 2023

2. 2
Agenda
• Housekeeping
• Introduction
• What do you know?
• What is Sustainability Reporting?
• What is ESG Reporting
• ESG vs Sustainability Reporting
• Reporting Standards (IFRS and FASB)
• What are SASB Standards?
• Sample – Financial Statement (Scope 1, 2, and 3)
• What are the initial steps for Sustainability and ESG Reporting
• Scope 1 (Definition) and Data Flow
• Scope 2 (Definition and Data Flow
• Scope 3 (Definition) and Data Flow
• Top Software Vendors (ESG Compliance)
• Key focus areas
• Additional links
• What is next

3. Paul Young - Bio
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and
MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: paul.young@actionkpi.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/

4. The goals of this presentation
• Understanding was involved with Scope 1, Scope 2, and Scope 3 Reporting
• How to manage, stored, secured and ingest data for ESG and Sustainability Reporting?
• Options on how to integrate the budgeting and forecasting cycle with the regulatory filing cycles
• How to develop ESG and Sustainability Policies including key metrics as part achieving net zero
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5. What do you know about the following areas?
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– Retailing
– Transportation, Warehousing, and Logistics
– Utilities
– Construction
– Manufacturing
– Mining
– Other
What is your industry or What
sector are your clients?
– Net Zero
– Circularity / Business Processes

6. Reporting
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As of 2020, 93% of S&P 500
companies issued a non-financial
report using one or more ESG
framework or standard. But whether
you are moving to ESG reporting
voluntarily or due to legal
requirements, you’ll face a complex
landscape of ESG standards and
sustainability frameworks. There are
more than 2,200 ESG reporting
provisions that can affect how
organizations disclose non-financial
matters. This can make it difficult to
determine which ESG standards and
frameworks are right for your
organization. To make it easier, this
guide will walk you through all you
need to know about the most common
ESG reporting standards and
frameworks and how to get started.
Key areas of concerns by Small to
Medium-size enterprises
–lack of knowledge
–limited time,
–lack of funds
–conflicting priorities
– Target date January 2024 (EMEA)

7. Integrated Reporting
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– Stakeholders
– Government (Regulatory)
– SEC (Pensions, Stocks, Bonds
– Private Investors
– Internal stakeholders (Lines of Business)
• Reporting Cycle
• Regulatory filings
• Budgeting and Forecasting Cycle
• Integration between reporting cycle and
the budgeting & forecasting Cycle

8. Data Quality
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– Data Management
– Data Governance
– Data Ingestion

9. ESG / Sustainability
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10. Introduction
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– Discussion on ESG and Sustainability Reporting
– Discussion on Scope 1, Scope 2, and Scope 3

11. What is Sustainability
Reporting
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12. What is ESG Reporting
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13. What is ESG Reporting
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14. Difference between ESG and
Sustainability Reporting
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15. ESG and Sustainability Reporting Standards
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Country Standards Target Date
IFRS The ISSB also voted to include a
reference to the GRI standards
and the European Sustainability
Reporting Standards (ESRS) as
sources of guidance for
companies to be allowed to
consider in the application of the
IFRS’ general sustainability
reporting standard (“S1”), in the
absence of a specific ISSB
standard.
January 2024
FASB Continues to be evolving No Official target date. However,
IFRS changes will impact US via
their EMEA subsidiaries

16. What are SASB Standards
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17. Sample of F/S
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Source - https://www2.deloitte.com/uk/en/focus/climate-
change/zero-in-on-scope-1-2-and-3-emissions.html

18. Focus Areas
• Annual, monthly, and forecasting cycles for Sustainability
Targets
• Scope 1, Scope 2, and Scope 3 will require plans
• Data and AI can play a key role – Introduction to
Sustainability
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– Regulatory compliance
– Pulling the data for Sustainability reporting
– Structure, semi-structure, and structure
data

19. Introduction to Scope 1,
Scope 2, and Scope 3
• Familiarization with Scope 1, Scope 2, and
Scope 3
• Develop a project plan for Sustainability and
ESG reporting
• Identified data sources
• Establishing of net zero policies and
framework
• Breakdown the process into the following areas
• Budgeting and forecasting cycle (Annually,
Quarterly, and Monthly)
• Regulatory compliance
• Investor presentation
• Internal and external monthly reporting
• Integration of budgeting and forecasting with
the close, consolidate, and reporting cycle
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20. Scope 1 Categories
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21. Scope 2
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– Key focus areas is source of raw materials and energy as part of the
production, selling, distribution, and the end consumer

22. Scope 2 – Categories
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23. Scope 3
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24. Scope 3 Categories
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25. Overall Challenges
• Aligning all aspects of your operations as part of getting to net zero (Procurement, Distribution,
Transportation, Property Management, Manufacturing, Extraction, refinement, etc. )
• Establishing stringent data governance rules
• Data capturing will depend on your sector and operational model
• You will need to look at different tools to capture, stored, secured, and ingest data as part of your ESG
and sustainability reporting requirements
• Working with procurement including vendors on how to capture the data from the invoice into different
systems (ERP, Accounting, Databases, etc)
• Working with your vendors on breaking information out related to sustainability reporting
• Establishing key programs around water, waste, emissions, electricity usage, etc.
• Establishing targets and measuring those targets (Data Management, Data Privacy, Data Security, and
Data ingestion)
• Metric Reporting / Performance Measurements
• Establishing the right tools that can extract, translate, and load (ETL) data into database that can be
ingested by a business analytical tool
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26. Top Software Vendors (ESG Reporting and Compliance)
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1. Benchmark Digital
Partners
2. Diligent
3. Ecometrica
4. FigBytes
5. IBM.
6. IFS
7. Metrio.
8. Microsoft
9. OneTrust
10. Persefoni
11. SAP
12. Salesforce
13. Sinai Technologies
14. Sphera
15. Sweep
16. UL Solutions
17. Watershed Technology
18. Wolters Kluwer Enablon
– Templates and Data capturing are key
to any solution
– Forecasting and planning cycle plays
an important role with managing the
integrating business planning and
reporting cycle.
– Data strategy and management needs
to capture data for each control
objectives related to ESG reporting
– Reporting format needs to support
XBRL, PowerPoint, and Microsoft Word
– Solutions need to embrace the power
of Data and AI

27. Key areas of focus
• Monitoring and asset management - https://www.ibm.com/products/maximo/asset-
management?utm_content=SRCWW&p1=Search&p4=43700050290494029&p5=e&gclid=CjwK
CAiArY2fBhB9EiwAWqHK6mRY8Tm8wY9zFY2pJuCbYEaXrXCAay-
pX08Cr2CiV4HglZs2gC32MRoCpSIQAvD_BwE&gclsrc=aw.ds
• Net zero – https://netzeroclimate.org/what-is-net-zero/
• Close, consolidate, and reporting cycle – https://www.slideshare.net/paulyoungcga/close-
consolidate-and-reporting-cyclepptx-256864692
• Circularity - https://hbr.org/2021/07/the-circular-business-model
• Compliance and reporting cycle - https://hbr.org/2012/06/managing-risks-a-new-framework
• Budget and forecasting scope 1, scope 2, and scope 3 -
https://www.ibm.com/products/planning-analytics/sustainability-planning
• Data strategy and data management - https://www.linkedin.com/posts/paul-young-
055632b_unlock-the-full-value-of-your-data-activity-7023960172133838848-
6AyT?utm_source=share&utm_medium=member_desktop
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28. What is next?
• Developing a data strategy that will capture data related to scope 1, scope 2, and scope 3
• Development of forecasting models as part of achieving net zero
• Canada is doing catchup - https://www.corporateknights.com/category-finance/canada-falling-behind-
other-countries-on-esg-investing-rules-report/
• Standardization of Rules and Regulations for ESG and Sustainability Reporting-
https://www.ifrs.org/projects/completed-projects/2021/sustainability-reporting/ or
https://www.sasb.org/ or https://www.fasb.org/
• Tracking sustainability and ESG outcomes on regular basis as part of getting to net zero
• Integrated financial planning with the close, consolidate, and reporting cycle -
https://ibm.box.com/s/a663mwfo08hp9oo06onaps5tcy9enyl7
• Looking at the best way to address net zero as part of managing both costs and capital.
• https://www.youtube.com/watch?v=DouWzaom_jo (Capital Planning)
• https://www.youtube.com/watch?v=yiD2YmL8sKs&t=189s (Supply Chain)
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29. Contact
Any additional questions and concerns, then email: Paul.Young@actionkpi.com
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