If you’re already leveraging IBM Planning Analytics (TM1), you may be wondering about its compatibility with ESG-reporting and target setting. The good news is, yes, IBM Planning Analytics is a powerful tool that can not only streamline but revolutionize your ESG reporting efforts.
Bridging The Gap: ESG And Financial Reporting
ESG reporting, often synonymous with Sustainability reporting, shares a common thread with financial reporting. The familiar territory of financial reporting involves consolidating data through spreadsheets, just like ESG reporting, where the focus often centers on metrics like greenhouse gas emissions. In this context, IBM Planning Analytics proves invaluable by addressing the challenges inherent in manual spreadsheet processes.
Navigating Differences: ESG Vs. Financial Reporting
Market Maturity and Clarity of Requirements
Unlike financial reporting, ESG reporting faces challenges due to varying standards and a still-evolving scientific landscape. Despite efforts to standardize under the International Financial Reporting Standards (IFRS), the breadth of ESG topics demands flexibility. Regulations worldwide are gradually mandating ESG reporting, with different rates of adoption.
Ownership and Availability of Data
While financial data is typically sourced from Enterprise Resource Planning (ERP) systems, ESG-data comes from diverse corners of an enterprise, often residing in different silos. Collaboration and coordination across business functions are essential for successful ESG reporting, a challenge that IBM Planning Analytics helps address.
IBM Planning Analytics As A Catalyst For ESG Growth
Many organizations view ESG reporting merely as a compliance exercise. However, forward-thinking companies see it as an opportunity to respond to market and investor concerns. Here’s how IBM Planning Analytics can elevate ESG reporting from compliance to a driver of growth and innovation:
Integrating Financial and ESG Models
IBM Planning Analytics facilitates the incorporation of ESG metrics into existing financial models, providing a holistic view of the business. For instance, workforce planning can include social metrics, offering insights into the true value of employee retention.
Central ESG Data Collection and Repository
Even with specialized ESG reporting tools like IBM Envizi in play, IBM Planning Analytics remains a crucial component. It aids in setting ESG targets, conducting scenario planning, and preparing data for upload to specialized ESG reporting tools, ensuring flexibility in a rapidly evolving landscape.
Building Foundations for a Sustainable Future
IBM Planning Analytics serves as a flexible and scalable platform, laying the groundwork for adapting to evolving sustainability data and compliance regulations. It also positions businesses to leverage AI and optimization techniques for enhanced resilience and agility.
Conclusion
In the pursuit of sustainable business practices, IBM Planning Analytics emerges as a strategic ally. Its adaptability, scalability, and business accessibility make it a reliable choice for organizations seeking to not only comply with ESG reporting standards but also drive growth and innovation.
Original article by Ann-Grete Tan: Using IBM Planning Analytics for ESG Reporting
