EY ESG Suite

Assessing your companies

sustainability reporting readiness

December 2022
 With a whole new set of sustainability reporting
standards, in scope companies should act now
to be compliant with the upcoming reporting
timelines

1Challenges
50,000+
With the introduction of the Corporate Sustainability Reporting Directive
(CSRD), 50,000+ companies in scope are facing various sustainability
reporting requirements.1
On 10 and 28 November respectively, the European Parliament 2 and the
companies in scope
European Council 3 approved the final text of the CSRD that will be
officially published by end of the year. The rules will apply to all large
companies and all companies listed on regulated markets, listed small and
medium-sized enterprises (SMEs), and non-European companies with a

1 12
subsidiary or branch with net turnover of EUR 40m in the EU and an
overall net turnover of EUR 150m in the EU. The application of the CSRD
will begin 1 January 2024 for companies already subject to the Non- and
Financial Reporting Directive (NFRD).
CSRD draft ESRS
When companies report under the CSRD, they will need to use the
European Sustainability Reporting Standards (ESRS) which have been
developed by the European Financial Reporting Advisory Group (EFRAG).
The first set was sent to the European Commission on 22 November. EU

82
bodies and Member States will now be consulted on this first set of ESRS,
before adopting the final standards as delegated acts by June 2023.
The first set of ESRS forsees 84 disclosure requirements, including
various KPIs.4 The lack of a standardized method for assessing current
new disclosure requirements
'readiness’ in relation to the ESRS, as well as the availability of the
required quantitative and qualitative data is a challenge for companies in
scope. Companies should identify specific sustainability matters to be
disclosed and develop an action plan, for example, as a roadmap, so that
they are ready to report within the timelines.
First year of
reporting period 2024 2025 2026 2028

Non-EU
Large Listed companies with
Companies
companies SMEs substantial
already
not currently (with opting- activity in the EU
subject to
subject to out clause) through a
NFRD
the NFRD subsidiary or
branch

First year of
reporting 2025 2026 2027 2029

2| The EY ESG Suite

 The EY ESG Suite is the path to an Environmental,
Social and Governance (ESG) readiness
assessment for the ESRS framework

2 Solution – EY ESG Suite

The EY ESG Suite is a comprehensive tool EY leverages to facilitate an ESG readiness assessment,
based on the relevant sustainability frameworks for companies. The EY ESG Suite has been updated
to reflect the latest ESRS drafts published in November 2022. Additional frameworks (e.g., ISSB.
GRI, SEC or TCFD) can be added for comparison purposes.

Customized A fully customized application that facilitates an individual overview to meet

landscape your goals and requirements.

An overview and separate listing of current relevant sustainability standards

Standards provided in one place (e.g., ESRS, ISSB, SEC, GRI, TCFD, etc.).

An engagement leveraging the EY ESG Suite usually includes a (high-level)

Assessment readiness, a materiality and a (deep dive) gap assessment.

Roadmap A roadmap is generated to assist you with your next steps. Your KPIs can be
and KPIs observed in a dashboard output.

3| The EY ESG Suite

 The EY ESG Suite provides a holistic approach with
five modules to help get your company aligned
with the sustainability strategy and ready for ESRS
reporting

3 The EY approach
Initiation Readiness Materiality Gap Road map
process assessment assessment assessment

1 Initiation process
The initiation process includes a kick-off workshop, a CSRD (or other standards) onboarding
workshop and a workshop series on requirements for general characteristics, strategy and
business models, and governance.

2
Readiness assessment
The high-level readiness assessment includes interviews with internal stakeholders and a first
screening of relevant documentation to assess the maturity score at a glance. It summarizes the
results in illustrative multidimensional charts as a basis for further steps to be taken in the
future.

3
Materiality assessment
The materiality assessment introduces sustainability impacts, risks and opportunities, and EY can
help to assess (double) materiality under the ESRS (or alternative) framework.

4
Gap assessment
The deep dive gap assessment includes a detailed analysis by scoring detailed requirements
along a defined scale and defining the key actions required. It supports the management
behind the reporting requirements to prioritize tasks and assign responsibilities for identified
gaps.

5 Roadmap
As an output of the assessments, action plans (compiled in a roadmap) are developed to close
identified gaps, including dashboards and an implementation workshop to discuss results with
internal stakeholders.

Your benefits
Modular approach: All–in-one: Dashboard outputs: One-pager:
A tailor made From initiation to To track progress Summaries of
service offering roadmap and assist in actions key progress metrics
for each ESRS

4| The EY ESG Suite

 Based on the outcome of the initial assessment,
EY teams can support you to help establish your
roadmap for ESG reporting readiness

4 Next steps
EY teams support you to help establish your roadmap for ESG reporting readiness with the following:

Business model ESG material ESG risk Decarbonization

strategy and value topics management
chain
Review of strategy and EY teams can help Perform an ESG risk and Help to develop a net-zero
business model to assess identify ESG material opportunities assessment, strategy and carbon-
adherence with the topics based on a including risk appetite. reduction targets by
transition to a sustainable stakeholder dialogue in Help integrate ESG risks leveraging climate scenario
economy aligned with the accordance with the to modelling tool. Help
Paris Climate Agreement. double materiality establish impact
company’s existing risk
Plan and help implement concept. measurement capabilities to
management process.
policies and due diligence quantify carbon footprint,
process for the value chain. transform supply chain and
decarbonize products.

Governance Metrics and Reporting Assurance

targets readiness
Help identify roles and Help develop policies, Help integrate ESG KPIs Assess assurance
responsibilities of the targets action plans to a monitoring readiness of data process
governance bodies with and resources for ESG framework, including flows and
regard to sustainability material topics. design methodology, internal control activities
matters and risk definitions, data so that your ESG
management. collection processes. information is assurance
Support drafting of the ready.

5 Contacts
ESG integrated report.

Dr. Christian Orth Yvonne Meyer

Global Sustainability Reporting Partner Climate Change and
and Assurance Solution Leader Sustainability Services
+49 711 9881 14554 +49 160 939 13248
[email protected] [email protected]

1 “Impact Assessment related to the CSRD”, EUR-Lex website, eur-lex.europa.eu./legal-content/EN/TXT/?uri=SWD:2021:150:FIN

2 “Sustainable economy: Parliament adopts new reporting rules for multinationals”, European Parliament website, europarl.Europa.eu/news/press- room/20221107IPR49611/sustainable-economy-
parliament-adopts-new-reporting-rules-for-multinationals
3 “Council gives final green light to corporate sustainability reporting directive”, European Council website, https://www.consilium.europa.eu/en/press/press- releases/2022/11/28/council-gives-
final-green-light-to-corporate-sustainability-reporting-directive/
4 “First Set of draft ESRS”, EFRAG website, efrag.org/lab6

5| The EY ESG Suite

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