ESG Accounting — the next frontier
Climate Change, net-zero, ESG Investment, and Sustainable Finance will drive the biggest shakeup in the Accounting and Auditing world in the last 100 years. Current Accounting Systems are not capable of meeting this challenge.
This table seeks to illustrate Data complexity and reporting required for can be labeled ESG Accounting.
ESG Accounting — some insights
· Involves extraction of data and the measurement of carbon emissions
· Focuses on assisting Companies trying to become net zero through offsetting & CO2 reduction awareness
· There are only a handful of companies operating in this space
· No one is really addressing Social & Governance
· Current finance department & accounting systems / ERP are not able to extract, measure, report carbon emissions data.
The Requirement of an Integrated Report — some Insights
· Welcome to the wild west
· No unified standards in place
· Process has started, or has it?
· Movement to reflect the environmental cost in the Financials as a cost and liability
· lack of clarity how you report on Social & Governance
· Standardized framework being developed under the IFRS
· Will be driven by the CFO
Leading to the….
Integrating Financial & ESG Report
In response to this challenge, I have set up ESG 3.0 — a new way to deal with Data and ESG.
In essence, you now have what is dubbed ESG Accounting.
Just like a few years ago, there were no head of ESG jobs, you will in the next few years have ESG Accounting systems or Carbon Accounting systems.
Introducing ESG 3.0
ESG 3.0 is a holistic next-generation, strategy, data-driven, tech-based ESG solution with a lower cost and is more practical than the larger consulting firms. It is provided together with GCX who have decades of subject matter experience and with an impressive list and testimonies of blue-chip clients. https://gcx.co.za/downloads
Why ESG3.0? — looks at the 3 key ESG Challenges — Data, Net Zero, ESG Ratings
Based on my many year’s experience as CFO, in my search for a solution, I recommend using a 3rd party digital ESG Platform solution. There is only a handful of these providers in the world.
Recognizing the need for a digital ESG Platform, I have teamed up with GXC — Dash.
GXC DASH is the first choice, leading Sustainability ESG Platform provider to leading blue-chip companies with a strong focus on service and hitech companies, real estate, hotels, food retailers, and supply chain.
DATA: DATA MANAGEMENT- MEASUREMENT — REPORTING –
GCX DASH is a leading all-in-one Carbon / ESG Platform providing a fully automated real-time Solution, Dashboards — KPIs with full drill drown facilities highlighting problematic areas + Scope 1, 2. 3 reporting.
GCX is a leader in ESG with a specialty in Real Estate, Hotel, and Food sectors with a leading-edge data-driven, digital platform with ESG monitoring and reporting capabilities.
NET ZERO: C02 REDUCTION-WASTE
Innovation and Science-based Targets, Waste Management, Energy optimization, enabling the addition of Renewable Energy to buildings, cities, and more. Enabling Companies to reduce CO2, save money, reduce risks and receive Project Funding to carry out energy-efficient projects. GCX also have a track record of energy savings and waste recycling for their clients.
ESG RATINGS: SUPPLY CHAIN — PORTFOLIO
A solution to grade all Companies in the supply chain/portfolio. Includes a Toolkit for SMEs (a lighter product) Digital Solution + Report for any Company in the supply chain (like credit reports). In essence, Companies will calculate their own grade in a digital solution based on real data and industry standards.
Call to Action.
ESG 3.0 is led by Jeffrey Levine, a seasoned CFO who is available to assist your Company upscaling your ESG Journey as a trusted advisor backed by a team of specialists & a Digital ESG solution. This provides a support and resource function to your CFO or ESG team.
We invite you to find out how we can help you on your sustainability journey. Please feel free to reach out to me at jeffrey@persofi.com
Jeffrey Levine