Those Who Do a Test ESG Report Will Not Be Surprised. The Auditors Are Already Asking for Them.
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BUSINESS
What to do now?
1. Don't fall behind the Czech market leaders
Get a head start and take inspiration from market
leaders such as Teplárna České Budějovice or ČEZ, for
whom Frank Bold Advisory experts are already helping
with sustainability reporting in advance.
Timely preparation will allow holding companies
to better prepare for the demanding requirements
of the regulated sustainability report, which will be
mandatory from 2025. The 2024 test report will provide
sufficient lead time for implementing the necessary
processes and data collection, minimising the risk
of conflicts, time delays and other issues in preparing
the sharp report.
2. Get ready for auditors, they're already asking
about reporting
The requirements for a regulated sustainability report
with respect to consolidation will be challenging,
so early involvement of auditors in the sustainability
reporting process including the test outputs is
essential. Auditors often require precise preparation
of ESG reporting in accordance with ESRS and EFRAG
implementation guidance documents. It is also not
uncommon to be asked by the auditors to provide
double materiality analysis or test reports, even though
companies will not be required to report until 2025.
3. You only have until the end of 2024 for a trial
report
Time is running out to prepare the test report and
if you do not begin preparing for the group reporting
in the next 3 to 5 months, there will not be enough
time left to put together the 2024 unregulated test
report next year. Working on the test report later could
conflict with producing the regulated report, which
must cover the entire 2025 financial year.
4. Reporting for a more complex holding structure
takes time
A major challenge for holding companies in mandatory
ESG reporting is the consolidation of data from all their
members. "You run into a number of technical and
interpretative issues that cannot be solved in a week.
With the 2024 report, you will figure it out in time
and avoid the inconvenience of the mandatory report
a year later," explains ESG expert David Janků.
5. Put yourself in the hands of experts. Frank
Bold Advisory has been there for the creation
of standards and major projects
Preparing a sustainability report is extensive and
complex, so do not hesitate to take advantage
of experts in the field. Whether you need to consolidate
double materiality across the group, even from
different sectors, create a consolidated sustainability
report or set up an efficient management of the entire
sustainability reporting process across the group, you
can turn to Frank Bold Advisory.
Frank Bold Advisory's team includes, among others,
EFRAG Sustainability Reporting Board member Filip
Gregor, a senior ESG expert at Frank Bold who has
been directly involved in the development of standards
at European level, and we also cooperate with ESG
consultant Mike Jennings, who has implemented
major projects together with Filip Gregor.
Frank Bold Advisory's experts have backed up their
expertise with a range of practical experience in
consolidating reporting for large companies, both
at the Czech and global level. They have worked with
clients such as ČEZ and Teplárna České Budějovice on
the timely preparation of sustainability reporting.