KPMG CSRD Process Monitoring Manager

For many companies, the time will soon come when regular annual reporting will be expanded by an additional requirement, i.e. by adding the theme of ESG (Environment, Social and Governance) in the financial statements. The obligation to report on these topics stems from the EU 'Green Deal' and is laid down in the 'Corporate Sustainability Reporting Directive' (CSRD). The standards, as part of the CSRD, are integrated into the European Sustainability Reporting Standards (ESRS).

Depending on a number of factors, as of fiscal year 2024 (reporting in 2025) or 2025 (reporting in 2026) companies are required to add ESG information to their regular financial statements. KPMG has developed a step-by-step plan to 'walk organizations through' how to meet the reporting requirements from the CSRD (on time).

The number of topics to be reported on in the annual report Is determined by the obligations of the ESRS and from the mandatory Double Materiality Assessment (the DMA). The Key Performance Indicators (KPIs) and (strategic) objectives to be reported on, are determined based on the established reporting framework.

A question that many organizations do not yet know how to answer. After all, for traditional annual financial reporting, processes and measures of internal control have been set up to ensure that all information is available on time internally. Timely delivery of information as part of the annual audit is therefore likely to happen.

However, the information needed to meet the requirements from the ESRS and the DMA is of a different nature. This may include:

• Policy documentation
• Converting strategies into concrete objectives (KPIs)
• Calculation models
• Templates as a starting point for annual reporting
• Evidence to support presented values
• Information from individual branches and departments
• Information from the value chain

Many organizations have not established a formalized process to collect and monitor information on the abovementioned requirements. This creates the risk that information and documentation will not be available or will not be available in time internally, resulting in a lack of time to perform an initial internal audit, insufficient quality and late delivery of the PBC to the auditor. With all the consequences this entails.

The KPMG CSRD Process Monitoring Manager (PMM) is a process management solution for sustainability reporting based on the Microsoft Power Platform, developed by KPMG. The configuration combines Microsoft Power Apps, Power Automate and Power BI to help clients get a handle on the activities required in the data collection process. By applying this configuration, the process of collecting the required information is set up (more efficiently) and timely collection of required documentation is ensured. The configuration includes the ability to (automatically) create one-time and/or periodic tasks.

Application of the integrated review functionality ensures that the required quality of the collected data and documentation is already established during the collection process before it is stored at the customer's server location. By using Power Automate, fully automated progress reports can be sent to final managers-and reminders for task performance. The dashboarding functionality in Power BI allows the progress of the process to be monitored, and where desired, focused to individual companies, departments, functions, etc. This is designed to be customer specific.