AI-Supported ESG Reporting

New legal requirements, rising industry standards and growing customer expectations increasingly demand proof of sustainable practices in supply chains — companies are being called upon to act. Due to directives such as the Corporate Sustainability Reporting Directive (CSRD) and a growing number of frameworks and rating methodologies (such as EcoVadis, CDP, GRI, etc.), the practice of ESG reporting is becoming more complex than ever before.

As stakeholder confidence in the sustainability information that has been publicly available to date is increasingly dwindling, suppliers are expected to provide sound evidence and substantiated explanations for sustainable measures — for example, for the reduction of greenhouse gas emissions or the management of internal sustainability targets.

Failure to provide such evidence can result in significant sales losses, the loss of customer relationships and potential fines totaling millions. An analysis by Bank of America shows that ESG controversies can cost companies in the S&P 500 Index up to USD 534 billion.

ESG-Reporting: Mounting Pressure on Sustainability Teams

Sustainability teams in the supply chain industry are facing mounting pressure from both inside and outside the company to provide audit-ready information about a company's sustainability performance. They need to oversee and handle a variety of sustainability requirements and assessment systems for their customers.

This can be overwhelming given the large amount of diverse sustainability frameworks, standards, and methodologies out there on the one hand, and the varying requirements of customers on the other hand.

Some requests are based on standardized questionnaires, such as annual customer audits and ESG ratings, whereas others may have their own unique information demands and specific data formats.

As a result, sustainability professionals spend much of their time deciphering ESG rating schemes, reporting checklists or sustainability questionnaires. In addition, they need to collect and organize evidence, and respond to requests from various internal and external stakeholders.

Responding to Sustainability Requests: A Tedious Task

Currently, responding to sustainability requests and assessments is a predominantly manual process. It involves the tedious collection of evidence and data from different departments, such as sales, finance, or compliance. Sustainability teams are bogged down by the repetitive nature of collecting and collating evidence.

Relevant information is often stored in spreadsheets and documents scattered across and beyond the organization. The answers to questions are sent by email and processed one by one.  It's no wonder that one easily loses track of things in such a manual environment. In addition, these processes are prone to errors and pose a risk to the accuracy and quality of the responses.

As stakeholder demands change rapidly with the increasing regulatory and customer expectations, the complexity of handling sustainability-related requests will skyrocket in the near future. Companies must demonstrate their commitment to sustainability, and responses will require constant attention and adaptation to prove continuous progress.

Automation as Key to Efficient ESG Reporting

AI-powered response and data processes through the use of ESG software can save more than 50% of sustainability professionals' time compared to the lengthy and manual process in the past*.

The result is a more productive, efficient and effective team that can achieve goals and focus on what really matters — driving ESG progress and making a difference. This not only attracts new talent, but also creates a bond that is crucial in a field as competitive as sustainability management.

In addition to the huge time savings, ESG software delivers greater accuracy in data processing and transparency throughout the ESG process. At the same time, it ensures that all ESG standards and legal requirements are met. This is particularly important with regard to external ESG audits and ESG ratings.

Sunhat: Efficient ESG Reporting Redefined

This is where Sunhat’s software solution comes in — Sunhat empowers sustainability teams to be more productive by helping them efficiently respond to sustainability requests from customers or any other stakeholder group.  Different stakeholder groups have different perspectives on sustainability that typically involve various functions and departments throughout an organization.

Sunhat’s software solution reduces the time and effort required to prepare responses and ensures an up-to-date process for collecting evidence from across and beyond an organization:

• Sunhat allows users to easily import any type of requesting format into the system and consolidate reports, ratings, and individual customer questionnaires into a unified view.
• Incoming questions are automatically organized and matched against hundreds of data points from the central knowledge base to generate answers.
• Sunhat provides teams with a centralized workspace to collaborate on answering questions and ensures the quality of evidence through robust processes.
• The ESG software is customized to your needs, with a user-friendly and accessible interface. The solution also integrates seamlessly with your organization's existing systems.

Created by Sustainability Experts for Sustainability Teams: the Team behind Sunhat

The Sunhat team around Lukas Vogt (CEO), Ali Kamalizade (CTO) and Alexander Behr (COO) combines technical expertise and sustainability knowledge to develop ESG software that is fully user-centered.

Our sustainability experts once worked as sustainability managers in industrial companies themselves and are therefore familiar with the problems and challenges faced by sustainability teams. With their many years of expertise, they are at your side to help you set up your processes in the best possible way. Our team focuses on optimizing the entire process, from recording ESG requirements to preparing and collecting the requested information and data.

You can read about what this looks like in practice in our customer stories: Sunhat customer success stories

Automating ESG reporting is a crucial step in meeting the increasing demands for sustainability. By using specialized ESG reporting software, companies can produce their ESG reports more efficiently, accurately and compliantly, while freeing up sustainability teams to focus on strategic tasks.

See the benefits live in a demo: Book a short meeting now!