ESRS Standards in SAP: How McCoy helps you to move forward

As a Sustainability Dynamo of your company, you know that sustainability is not just a trend. It is a necessity for the future. With the introduction of the Corporate Sustainability Reporting Directive (CSRD) and associated legislation, it is becoming increasingly important for companies to provide reliable sustainability reporting. However, the ESRS standards are sometimes difficult to understand. In this blog we show how to convert new standards into actions, using SAP software.

The Role of ESRS in Sustainability Reporting

The ESRS (European Sustainability Reporting Standards) have been developed to help companies meet CSRD requirements. These standards cover various aspects of ESG performance and are intended to guide companies in systematically reporting their sustainability performance. Each aspect of ESG has its own specific standard. For example, ESRS E2 focuses on pollution. In the image below you will find an overview of all ESRS standards.

The decomposition of ESRS Standards (ESRS E2 - Pollution)

An ESRS standard is always structured in the same way:

• It starts with the reporting requirements, which are explained per requirement.

• They then contain the KPIs that need to be measured.

• This is continued by the methods* (including the LEAP method, which stands for Locate, Evaluate, Assess, and Prepare & Report) that must be applied together with the other application requirements.

*Due to the large number of methods, we will not highlight them in this blog. Our experts at McCoy know the different methods and know how to apply them correctly.

If you look at ESRS E2, it consists of a number of KPIs. In the image below you see an example of a KPI and what it is made up of.

For the ESRS E2 standard you must therefore report on the following KPIs:

• Pollution of air, water, and soil

• Use of harmful substances and very harmful substances

You must report on:

• The methodology you applied to make the measurements

• The materiality analyzes you have carried out

• Your policies

• The actions and resources you will use

• Your goals

• The potential financial effects

CSRD requirements in SAP

In order to report properly on the KPIs, a link with your SAP system is essential. We have developed an ESG dashboard for this purpose. We also use SAP's Sustainability Control Tower to make things easier for you. Read more about SAP's Control Tower here.

Our approach

We have an approach in which we guide our customers from A to Z. From analysis to implementation, configuration, training and support. With this approach we ensure that your reports not only meet legal requirements, but also provide valuable insights that contribute to your sustainability goals and business strategy.

1. Analysis

We start with a thorough analysis of your business processes and identify the relevant sources of data needed for your CSRD reporting.

2. Implementation of SAP software

Our experts use SAP software to collect and analyze the necessary data. We know exactly in which tables or CDS views the data can be found and how it can be integrated to form relevant KPIs.

3. Configuration of KPIs

We help configure the specific KPIs needed for CSRD. The KPIs are presented in clear dashboards and reports that meet CSRD requirements.

4. Training and Support

We provide training and ongoing support to ensure your team is fully equipped to continue and improve reporting independently.

Do you also want to take sustainability reporting seriously?

With our unique combination of expertise in both reporting and SAP software, we can help you with this. Would you like to know more about this topic? Please contact McCoy for more information.