Sustainability Reporting & Governance

As auditors, we know what is important when it comes to information relevant to reporting: Traceability, consistency and robust documentation. Especially in the context of CSRD, ESRS, EFRAG and EU taxonomy, the requirements for data points, evidence, reporting standards and control mechanisms are increasing. The Federal Ministry of Labour and Social Affairs describes the CSRD as a directive that is intended to close existing gaps in sustainability reporting and introduce binding reporting standards at EU level.

Our approach starts where the sustainability report is created: in the specialist departments, systems, controlling processes, control steps and decision-making channels of your company. We don't just check whether information is available. We look at whether it is reliably collected, checked for plausibility, approved and documented.

KPMG supports you in setting up reporting governance that clearly defines roles, responsibilities and escalation paths. This includes the question of which functions provide data, who is responsible for content and how management, the Executive Board, Supervisory Board, Controlling and specialist departments are involved. Robust sustainability governance reduces coordination efforts and creates transparency for internal and external stakeholders.

It is particularly important that it is anchored in the existing governance system. Sustainability reporting should not stand in isolation alongside finance, risk, compliance, controlling or internal audit. KPMG helps you to design interfaces in such a way that responsibilities remain traceable and decision-making processes are documented.

Sustainability reporting is only as robust as the processes from which the information originates. We analyse your existing data flows from collection to the final sustainability report. In doing so, we identify media errors, manual interventions, inconsistent definitions and potential weaknesses in the verification process.

On this basis, we work with you to develop processes that suit your organisation. The focus is on clear data owners, comprehensible calculation methods and standardised quality requirements. This creates a basis that is not only suitable for the next sustainability report, but also for permanently controllable ESG reporting and effective corporate management.

The ESRS specify numerous reporting requirements for companies and specify which sustainability-related information must be disclosed in the sustainability report. The reporting standards developed by EFRAG raise the bar in terms of the structure, completeness and comparability of disclosures. For companies, this creates the task of translating regulatory requirements into specific processes, data models and responsibilities.

KPMG supports you in categorising the relevant ESRS data points and aligning them with existing reporting and controlling structures. We don't just look at the formal fulfilment of reporting requirements. The decisive factor is whether the information can be used reliably for management, controlling and corporate management.

Internal controls are a key success factor for audit-proof sustainability reporting. KPMG supports you in the design, evaluation and further development of control-relevant steps. These include plausibility checks, dual control principles, approval processes and documented control procedures.

In practice, it is often the case that sustainability data is technically available but has not been documented in a sufficiently verifiable manner. We help you to close this gap. In doing so, we contribute our experience from auditing and assurance projects, also with regard to reporting standards such as ISSA 5000 and the reporting requirements of the ESRS.

The requirements for sustainability reporting remain in flux. According to the German government, up to 3,900 companies in Germany will be covered in future as a result of possible restrictions to the CSRD. At the same time, relief and simplifications are being discussed. It is therefore important for companies to set up implementation programmes that are not only formal, but also flexible and resilient.

KPMG supports you in classifying relevant reporting requirements and derives specific fields of action from them. We take into account reporting obligations, ESRS, EFRAG requirements, existing data structures and the maturity level of your organisation. The goal is an implementation plan that sets priorities, prepares the sustainability report and supports management decisions.

KPMG Sustainability Services does not end with processes. Many companies are faced with the question of which systems, workflows and data models can support their ESG reporting in the long term. We evaluate your existing reporting architecture and show you where technology can improve data quality, traceability, efficiency and integration with controlling.

Depending on the initial situation, we support you in the selection, implementation or further development of suitable solutions. We make sure that tools are not viewed in isolation from governance, controlling and monitoring. Technology only unfolds its benefits when processes, responsibilities, reporting standards and audit requirements fit together.

KPMG Sustainability Services combine regulatory expertise, audit know-how and understanding of transformation. We support management teams in establishing sustainability reporting as a robust management process. This includes analysing the status quo, developing a target architecture, designing governance models, integrating controlling and preparing for external audits.

Our claim is clear: we provide you with forward-looking, reliable and precise support. You do not receive isolated individual measures, but structured support in line with your reporting requirements, reporting standards and management requirements. This creates the basis for KPMG Sustainability Reporting that is internally controllable and externally traceable.