Accelerating CSRD Reporting with the Oracle EPM ESG Reporting Solution.

As global sustainability leaders in the banking sector, you understand the critical importance of robust Environmental, Social, and Governance (ESG) reporting. With frameworks such as the Corporate Sustainability Reporting Directive (CSRD) shaping regulatory requirements, it's imperative to adopt a comprehensive solution that ensures compliance and drives strategic value. 

In this blog post, we will outline the main features of Oracle's Enterprise Performance Management (EPM) ESG Reporting Solution and focus on how it is designed to meet these challenges, providing an integrated platform to streamline and enhance your ESG reporting.

The Comprehensive Scope of the Solution

Oracle EPM for Sustainability is a holistic solution that supports end-to-end ESG reporting and planning, ensuring that financial and non-financial data are seamlessly integrated. This robust platform offers comprehensive capabilities to capture, standardise, and report ESG data across various dimensions of your organisation.

Here's an in-depth look at what Oracle EPM can capture and report relative to the Environmental, Social, and Governance aspects of CSRD disclosures:

Environmental (E) Reporting:

• Greenhouse Gas Emissions: Use Oracle EPM's advanced carbon calculators to capture and monitor greenhouse gas emissions across Scope 1, Scope 2, and Scope 3 categories. These calculators are designed to process raw emission data and convert it into standardised greenhouse gas metrics, employing detailed metrics and conversion factors for precision. This ensures accurate and compliant reporting, making tracking and managing environmental impact easier.
• Resource Consumption: The system can monitor and report on the consumption of various resources, including electricity, gas, diesel, water, and waste generation. It allows for detailed data entry and aggregation, providing a comprehensive and thorough analysis of resource consumption trends and patterns.
• Environmental Impact Metrics: Monitor impacts such as pollution levels, biodiversity effects, and other environmental footprints. These metrics are crucial for meeting various environmental standards and protocols.

Social (S) Reporting:

• Employee Well-being and Safety: Report on health and safety incidents, employee satisfaction, and well-being programs. This includes collecting data on workplace accidents, health initiatives, and employee feedback.
• Diversity and Inclusion: Track metrics related to workforce diversity, gender equality, and inclusion initiatives. This encompasses demographic data, diversity training programmes, and inclusion policies.
• Community Engagement: Report on corporate social responsibility (CSR) activities, community investments, and stakeholder engagement efforts, detailing volunteer hours, charitable contributions, and partnership programs with local communities.
  
  

Governance (G) Reporting:

• Corporate Governance Practices: Monitor and report on board structure, executive compensation, and shareholder rights. This includes data on board diversity, governance policies, and compliance with governance standards.
• Ethical Business Practices: Capture information about anti-corruption measures, ethical training programs, and compliance with regulatory requirements, which includes monitoring incidents of non-compliance, fines, and corrective actions taken.
• Risk Management: Assess and report on enterprise risk management (ERM) processes, including risk identification, assessment, and mitigation. This encompasses financial, operational, and strategic risks, ensuring a comprehensive governance framework.
  
  

The solution can capture and report on all the major reporting and compliance frameworks, including CSRD, GRI, SASB, and more.

Key Capabilities

Integrated ESG Data Management:

• Centralised Data Collection: Collect ESG data from various sources, including ERP, HR, and supply chain systems, and centralise it in a single platform to ensure data consistency and integrity across the organisation.
• Standardisation and Conversion: Standardise diverse data into standard reporting formats and utilise built-in calculators for unit conversions to ensure adherence to required standards and protocols.
  
  

Advanced Reporting and Analytics:

• Comprehensive Reporting: Generate detailed reports that comply with multiple ESG frameworks such as CSRD, GRI, SASB, and more. Customise reports to meet specific regulatory and stakeholder requirements.
• Interactive Dashboards: Use interactive dashboards for real-time monitoring and ad hoc analysis of ESG metrics. These dashboards provide visual insights into key performance indicators (KPIs) and trends.
• Narrative Reporting: Combine quantitative data with qualitative insights through narrative reporting, facilitating a deeper understanding of ESG performance and strategic direction.
• Integrate with other BI/Reporting Tools: Many clients use Wokiva or Tableau for reporting. The data from the Oracle platform can be exported to a data warehouse, ready for reporting in downstream reporting tools.
  
  

Enhanced Planning and Forecasting:

• Scenario Modelling: Conduct what-if analysis and scenario modelling to assess the potential impact of various sustainability initiatives. This capability helps in making informed decisions and optimising sustainability strategies.
• Predictive Planning: Leverage capabilities to forecast future ESG metrics and validate targets. This feature ensures that sustainability plans are realistic and achievable.
• Initiative Management: Plan and track sustainability initiatives across the organisation, ensuring alignment with overall business objectives and regulatory requirements.
  
  

Robust Workflow and Collaboration:

• Task Management: Manage ESG reporting processes with embedded task management and approval workflows. This ability ensures that all steps in the reporting process are tracked and completed efficiently.
• Collaborative Platform: Facilitate collaboration across all levels of the organisation, engaging all relevant stakeholders in the sustainability agenda. This includes capabilities for role-based access and shared workspaces.
  
  

Data Collection with SmartView Forms and Sustainability Templates

One significant challenge banks face is managing the vast array of data sources required to collect comprehensive ESG and CSRD data. Oracle's EPM ESG Reporting Solution addresses this challenge through its advanced data collection tools, ensuring seamless integration and ease of use.

SmartView Forms:

• Excel Integration: SmartView forms enable seamless integration with Microsoft Excel, allowing users to input, analyse, and report data in a familiar environment, thus minimising the learning curve for data entry personnel.
• Flexible Data Entry: Users can input data directly into Excel-based forms fully integrated with the Oracle EPM platform, ensuring quick and accurate data capture from various sources.
• Real-Time Updates: Entering data in SmartView forms instantly updates the EPM system, ensuring real-time data accuracy and availability. This integration supports dynamic reporting and analysis, which is ideal for those in sustainability roles responsible for creating reporting outputs.
  
  

Sustainability Templates:

• Predefined Templates: Oracle offers predefined sustainability templates for capturing specific ESG metrics, including emissions, resource consumption, and social and governance metrics. These templates streamline the data collection process with a structured format.
• Customisation Options: Organisations can modify these templates to suit their specific data collection needs. This customisation ensures that all relevant data points are captured according to the organisation's unique requirements.
• Data Validation and Aggregation: The templates have built-in validation rules to ensure data accuracy. After collecting the data can be combined to offer a complete view of the organisation's ESG performance.
  
  

Adding ESG Capabilities to Your Existing Oracle EPM Deployment

For existing Oracle EPM clients, integrating ESG capabilities into your current EPM deployment is a seamless process that leverages your existing infrastructure and enhances your reporting and planning functions. 
Here's a high-level overview of deploying the application:

1. Download the ESG Module
The ESG Module LCM can be found in the Oracle Market Place or via the Customer Connect website.

2. Initial Setup and Configuration
Perform the initial configuration by importing the EPM for Sustainability application snapshot. This requires a clean, unused Enterprise Edition Planning business process. Follow the provided setup guides to configure user variables, set up navigation flows, and import sample data for review and familiarisation.

3. Data Integration
Utilise Oracle Smart View for Office to integrate data entry and reporting within Microsoft Excel. This allows you to leverage existing data collection methods and streamline the input process. Employ the Sustainability Templates for structured data capture. These templates are preconfigured to collect specific ESG metrics, ensuring comprehensive and accurate data collection.

4. Configuration and Extension
Configure the ESG module to fit your organisation's unique requirements. Update dimensions and members to reflect your organisational structure and configure additional reporting and planning capabilities.
Integrate the ESG data with other business processes within Oracle EPM, such as Financial Close and Consolidation, Account Reconciliation, and Narrative Reporting. This integration ensures that ESG data is fully incorporated into your overall performance management framework.

5. Training and Rollout
Train your staff on the new ESG capabilities and the use of Smart View forms and Sustainability Templates. Ensure they are familiar with the new workflows and reporting standards. Roll out the ESG module across your organisation, providing access and support as needed to ensure a smooth adoption.

6. Ongoing Maintenance and Updates
Update the ESG data, templates, and reporting structures regularly to comply with evolving standards and regulations. Use the built-in validation and aggregation features to maintain data accuracy and integrity.

Revvence Support

We can help you successfully deploy the ESG reporting module, and we typically see clients being able to start using the application within six to eight weeks.

We can also help our clients with the Double Materiality Assessment (DMA) process, which is a critical step before using the Oracle ESG solution for sustainability reporting.

Business Benefits

Efficiency and Cost Reduction:

• Automation: Automate data collection, processing, and reporting, reducing manual effort and the associated costs. This leads to faster report generation and reduced administrative overhead.
• Integrated Solutions: Integrating ESG reporting with existing financial and operational systems reduces the need for multiple-point solutions and simplifies system maintenance.

Improved Decision Making:

• Data-Driven Insights: Use advanced analytics and interactive dashboards to gain insights into ESG performance. This supports better decision-making and strategic planning.
• Predictive Capabilities: Predictive planning tools help anticipate future trends and adjust strategies accordingly, ensuring proactive management of sustainability goals.
  
  

Compliance and Risk Management:

• Regulatory Compliance: Ensure compliance with current and evolving ESG regulations, mitigating the risk of non-compliance penalties.
• Transparency and Trust: Maintain high data integrity and transparency standards, build stakeholder trust, and enhance corporate reputation.

Scalability and Flexibility:

• Adaptability: The solution's flexibility allows it to adapt to changing regulatory requirements and organisational needs. This ensures long-term sustainability and relevance of the reporting process.
• Global Applicability: The solution can be scaled across different business units and geographical locations, supporting global sustainability initiatives and reporting requirements.
  
  

Accelerating ESG/CSRD Reporting Delivery

Oracle's EPM ESG Reporting Solution accelerates the delivery of ESG and CSRD reports by:

• Automating Workflows: Streamlining data collection, processing, and reporting through automated workflows and integrations, significantly reducing the time and effort required.
• Centralising Data Management: Providing a single platform for all ESG-related data, ensuring consistency and reducing the complexity of data handling.
• Enhancing Usability: Offering user-friendly tools and interfaces such as Smart View for Excel, making it easier for users to input, analyse, and report data effectively and efficiently.
  
  

Call To Action

Global sustainability leaders in the banking and financial services sectors should seriously consider Oracle's EPM ESG Reporting Solution. You can avoid spending millions of dollars building internal solutions or treat the Oracle solution as a tactical solution while you aim for your North Star Sustainability Reporting strategy.

This platform enables highly accurate and timely CSRD reporting and significantly bolsters ESG management. By utilising this comprehensive, integrated solution, you will accelerate your overall vision, drive efficiency, ensure compliance, and save significant time and money.

How can we help?

Revvence can help in several valuable ways:

• Create a proof-of-concept to show you the art of the possible and help you build your business case for change.
• The design and delivery of end-to-end ESG/CSRD compliance and reporting solutions.
• Review your existing Materiality Assessment process to introduce systems to support the entire process.
• Check out Revvy, our Narrow-GPT for Finance Transformation. Read all about Revvy here.