Unlocking ESRS Success: 5 Crucial Software Capabilities Powered by Intelex
September 4, 2024
As the EU’s Corporate Sustainability Reporting Directive (CSRD) is put into practice, regulated businesses must adapt to the Enhanced Sustainability Reporting Standards (ESRS) framework, which is pivotal for EU ESG disclosures. By 2026, many firms with EU operations (even if headquartered elsewhere) will need to report on their environmental, social and governance impacts, applying the ‘double materiality’ principle.
The concept of materiality focuses on financial elements that shape economic decisions. Double materiality expands the assessment to account for non-financial effects on internal and external stakeholders. This holistic approach ensures that companies address their sustainability footprint comprehensively.
With ESRS, the EU aims to standardize reporting, making ESG data more comparable and reliable. For businesses, it’s a call to align operations with these expanding sustainability horizons. Many businesses will need to level up their people skills, processes and enablement systems.
Fortunately, Intelex can greatly help, providing you with advanced data collection and reporting, pre-loaded emission calculation factor library, ESG program management, data source integrations and professional services.
Why ESRS Is a Game Changer for EU Business
In an era where sustainability has transformed from good intentions to a business imperative, the Enhanced Sustainability Reporting Standards (ESRS) are gaining traction as a critical tool for companies. These standards serve as a compass for businesses navigating the complex terrain of sustainability, offering a multitude of benefits.
ESRS fortifies business transparency and accountability, providing a clear view of a company’s sustainability journey. It strengthens relationships with investors and builds trust with stakeholders who are increasingly eco-conscious. By using ESRS, companies can also cherry-pick suppliers who share their commitment to sustainability, ensuring a green supply chain.
Moreover, ESRS helps businesses effectively communicate their sustainability endeavors and triumphs, playing a vital role in customer retention and acquisition. This communication is key in today’s market where eco-friendly practices influence purchasing decisions.
The ESRS standards also shine in the HR arena, helping to attract and retain talent who favor employers with strong sustainability credentials. By embedding these standards into their core operations, companies not only enhance their environmental and social impact but also appeal to a growing workforce that values purpose-driven work. This alignment with employee values can lead to increased job satisfaction, loyalty, and long-term success in building a motivated and engaged team.
By fostering sustainable business practices, ESRS-guided companies are well-positioned for long-term growth. Aligning with ESRS ensures that businesses stay on the right side of evolving regulations, futureproofing them against compliance risks. In essence, ESRS isn’t just EU compliance—it’s smart business.
Five ESRS Reporting Features by Intelex That Will Drive Business Success
1. Guided ESRS Data Collection and Reporting
Intelex software streamlines the collection and aggregation of quantitative data with pre-configured forms that align with ESRS and other important ESG frameworks, providing an organized and standardized approach that spans multiple kinds of frameworks. The platform features advanced reporting dashboards tailored to ESRS metrics, incorporating the expertise of Intelex consultants to apply the value of industry best practices.
While many organizations find that their current approaches and technologies make it difficult to view ESG performance achievements and trends more than once a year, Intelex provides real-time insights that empower proactive ESG performance management throughout the year.
Intelex’s out-of-the-box data collection forms, customizable reporting dashboards and intuitive configuration tools make it cost-effective to deploy and operate a powerful ESRS management solution tailored to the unique ESG needs of organizations.
2. Auditable Data Source Integrations
Acquiring, handling, organizing and rendering extensive ESG datasets can prove challenging without the correct infrastructure. The historic reliance on static spreadsheets is insufficient for maintaining records and analytics at both local and broader corporate levels. Furthermore, narrowly focused ESG platforms typically operate as outdated, isolated information entities, not integrated with a range of valuable corporate data streams such as Continuous Emission Monitoring Systems (CEMS), Environmental Health and Safety (EHS), Purchasing/Supplier Management and Human Resources functions. Such segregation can lead to inefficiencies such as lagging, redundant or even erroneous entries, incurring high costs in data management across various systems.
Currently, ESG data must adhere to stringent standards: it should be accurate, precise, free from duplicate values, consistent, timely, verifiable in audits and support compliance with relevant regulations and frameworks. Intelex addresses these demands by streamlining data entry for diverse applications, managing data at multiple corporate levels for multiple purposes, and providing user-friendly dashboards. Also, our services team can help migrate historical data from legacy systems, facilitating a smooth transition to an upgraded business performance management platform.
Furthermore, Intelex enhances the integrity and auditability of your ESG data to support conformance with the CSRD and ESRS standards. Intelex enables customers to support third party assurance requirements that are a key part of CSRD. This is important for businesses to avoid significant financial penalties:
“In Italy, the penalty is a fine of between €20,000 and €150,000, and in Germany, companies face fines of up to either €10 million, 5% of the total annual turnover or twice the total profits made/losses avoided due to the breach [of the EU non-financial reporting rules]”, according to fieldfisher.
3. Pre-Loaded Emission Calculation Factor Library
Amassing emission calculation factors data can be a formidable endeavor. Intelex ESG Management software streamlines this effort by offering a comprehensive and up-to-date suite of emission factor libraries that cover Scope 1, 2, and 3 emissions, in addition to waste and water.
This resource enables you to seamlessly calculate emissions in alignment with your unique needs, including considerations for industry type, regulatory standards, specific job sites and various other pertinent factors. Intelex provides regular updates to ensure that the latest factors are available. These factors are used in Intelex dashboards and reports.
4. Pre-Configured ESG Frameworks Content
Many businesses that need to comply with ESRS also need the ability to support other regulatory frameworks. Pre-configured Intelex content packs provide structured forms and reporting indicators that guide data collection for popular frameworks such as the European Sustainability Reporting Standards (ESRS) for the Corporate Sustainability Reporting Directive (CSRD), Carbon Disclosure Project (CDP) and more. For example, framework-specific dashboards help you understand your ESG performance metrics and progress. Intelex dashboards are purpose-built and are informed by the best practices from Intelex consultants.
Many businesses focus their ESG efforts on greenhouse gas (GHG) emissions accounting in alignment with popular or mandated frameworks. A growing portion of our customers are maturing in their EHS focus – from compliance to sustainability. Concurrently, many are joining their Safety Incident Management metrics with dynamic ESG Social KPIs, all powered by Intelex as their trusted maturity enabler.
5. ESG Program and Project Management
Intelex ESG management solutions will help organizations launch, scale or optimize their ESG programs, regardless of where they are at in their program maturity. The management of projects and initiatives aligned with overarching ESG objectives is facilitated by robust Intelex program management features.
Intelex users can establish objectives, break down projects into tasks and sub-tasks, designate essential stakeholders and monitor progress through an advanced workflow engine. Furthermore, they can analyze program performance in real time and escalate the follow up on overdue activities.
Strategic Actions for ESG Compliance in 2026 and Beyond
By 2026, many firms with EU operations will need to report on their environmental, social and governance impacts on internal and external stakeholders. Furthermore, firms will need to enable third-party data assurance. To achieve this, many businesses will need to level up their people skills, processes and enablement systems. Intelex can greatly help with advanced data collection and auditable reporting, pre-loaded emission calculation factor library, ESG program management, data source integrations and professional services.
Discover how Intelex’s ESG Management Software streamlines data collection, reporting, and sustainability efforts. Watch the demo to see how it centralizes ESG insights and supports performance improvement.
