Extra-financial performance of companies has started to be scrutinized by investors, banks, and insurers to manage financial risk since the early 2000s. It was at this time that several standards developed globally, particularly in the Anglo-Saxon world, such as the Global Reporting Initiative or the IFRS and the Carbon Disclosure Program regarding carbon emissions.
The European Union followed suit about a decade ago as part of the Green Deal, proposing a new standard, the CSRD for Corporate Sustainability Reporting Directive, which made European companies aware of the need to report on sustainability, focusing on environmental, social, and governance aspects.
“Today, most companies believe that what is expected of them is to report once a year. However, what is most important is to take action in a dynamic way so that the reporting of the following year reflects that the company is more sustainable and more desirable for investors, insurers, and banks, as well as all stakeholders, including NGOs, employees, customers, and suppliers,” explains Patrice Hiddinga.
At Ascend Tech, the idea is to equip companies so they can take into account all these global and European standards, streamline the process, and facilitate data collection, which can then be used for reporting in Europe or to foreign investors, in various use cases, in the cleanest, auditable, and sovereign manner possible.
“It is clear that the companies that will be the first to equip themselves and develop these skills will be the winners of tomorrow,” anticipates Patrice Hiddinga. “They will have anticipated heatwaves, droughts, floods, the arrival of Generation Z, which will be different, and implemented the necessary action plans to be more effective, both internally and with all their stakeholders.”
New topics have sparked discussions in executive committees and boards, highlighting the need for budget and project leaders to manage these elements.
“Identifying issues allows the company to take action and then generate pride for those launching the project, pride in having collectively succeeded on a somewhat complicated subject, achieving financial performance through cost savings. So, everyone wins. What is very interesting is that, since this area of extra-financial performance has not yet been fully explored by companies, there are potentials, wells of savings or tremendous opportunities,” concludes Patrice Hiddinga.
