Double materiality analysis completed – what’s next?
Many companies are currently working on the requirements of the Corporate Sustainability
Reporting Directive (CSRD). The first step, conducting a
double materiality analysis, is often an intensive process where businesses identify the themes that
are material for their organization to report on. But the work doesn’t stop there.
Once you’ve determined which themes are material, the next challenge arises: where and how do
you collect the necessary data? And how do you ensure that this information is properly stored and
processed for reporting?
The challenge of data collection after double materiality
Following the double materiality analysis, the next step is to gather the right data. Data points form
the foundation of your report and provide insights into your organization’s performance on material
topics. However, this is no small task, as the data must meet several criteria:
● Transparency: Data must be clear and easily traceable.
● Accuracy: Every data entry must be precise.
● Verification: Information must be verifiable according to CSRD standards, such as XBRL
(eXtensible Business Reporting Language).
Many companies encounter challenges managing these complex data streams. Relying on Excel
sheets often leads to errors and inefficiencies. A streamlined system is essential to support this
process effectively.
How to ensure transparency, accuracy, and verification
Here are some best practices to enhance the transparency, accuracy, and verification of your data:
Transparency
To promote transparency, ensure that each data point is accompanied by evidence and that a log is
maintained of the individuals who provided this evidence. Tools like SmartTrackers can manage both
aspects, making it easier for auditors and stakeholders to review and compare data across reporting
periods. Using a centralized data system simplifies access for audits and reviews, ensuring all
information is readily available in one place.
Accuracy
Automated error-detection systems can play an important role in identifying and correcting input
errors. For example, such systems can use predefined thresholds to flag data that falls outside
expected ranges. Setting a margin for revenue figures, for instance, helps detect discrepancies
immediately. Training your team in proper data collection, entry, and verification practices is equally
important. Establishing robust control mechanisms significantly improves data accuracy. Regular
training on tools further supports data integrity.
Verification
To ensure information is verifiable according to standards like XBRL, it’s important to use
standardized reporting systems. These systems automatically convert data into a uniform format,
making it easier for auditors and stakeholders to review. Consistently applying XBRL allows for easier
year-over-year comparison and verification, enhancing report reliability and building external
stakeholder trust. Validation tools, such as SureSync’s XBRL validator, can ensure the correct
application of the XBRL methodology.
The SmartTrackers solution
At SmartTrackers, data quality is a top priority. Transparent, accurate, and verifiable data is essential
for an effective ESG program that drives meaningful change. For the past 15 years, we’ve developed
a platform that makes decentralized data collection clear and controllable.
With features like timestamped records, evidence tracking for each data point, multiple validation
roles, threshold checks, and flexible insights into registered data, we provide our clients with all the
tools they need to set up professional data collection processes.
Our system then converts the collected data into XBRL-compliant reports. This means your reports
are immediately ready for submission in the required formats, without worrying about technical
details. Additionally, we offer our clients the CSRD XBRL validator from SureSync. This process, which
often poses challenges for many companies, becomes simple and accessible with SmartTrackers.
Conclusion: What’s next?
Have you completed your double materiality analysis and identified the themes that are material for
your organization? The next step is to streamline your data collection and reporting processes.
SmartTrackers can help you efficiently manage all relevant data and generate XBRL-compliant reports
with ease.
Conducting a double materiality analysis is just the beginning. With SmartTrackers, your organization
can build a future-proof system for data collection and risk management.
Want to learn more about how SmartTrackers can support your business? Contact us today!