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Challenge
Although it hadn’t been producing a full sustainability report, RSM’s client recognised the need to enhance its sustainability practices and reporting capabilities.
Solution
Recognising the client's concerns about the resources required for a comprehensive sustainability assessment, RSM implemented a structured approach that broke down the process into manageable phases.
Success
RSM’s approach helped prepare the client for future sustainability reporting requirements and positioned the company ahead of potential regulatory changes.
Client overview:
RSM in Spain is serving a client that is a dominant electric utility company in Andorra and is one of the leading providers in the country's energy sector. As one of the most powerful companies in its industry, the client plays a crucial role in Andorra's electric infrastructure and economy.
Background:
The client was preparing for future sustainability reporting requirements, particularly in light of emerging European standards such as the Corporate Sustainability Reporting Directive (CSRD). Although not currently producing a full sustainability report, the client recognised the need to enhance its sustainability practices and reporting capabilities.
Our project objectives:
- Conduct a double materiality assessment,
- Prepare a sustainability report in accordance with Global Reporting Initiative (GRI) standards.
- Identify key performance indicators (KPIs) for sustainability reporting.
- Align the company's practices with upcoming European sustainability reporting standards.
Our approach:
RSM adopted a structured approach to achieve the project objectives:
- Comprehensive assessment: RSM conducted a thorough double materiality assessment, enabling the client to gain a deep understanding of their sustainability impacts and risks. This process involved analysing the context, identifying impacts and opportunities, and using GRI standards to determine the client’s priority sustainability topics based on severity, scale, scope, probability, and remediation potential.
- Stakeholder engagement: RSM employed a multi-faceted approach to stakeholder engagement, combining direct interviews with the management team and broader surveys. This comprehensive stakeholder input helped ensure that the materiality assessment and subsequent sustainability reporting accurately reflected the priorities and concerns of key stakeholders.
- Data-driven decision making: RSM integrated both direct and indirect sources of information to assess the relevance and criticality of different sustainability topics. This data-driven methodology provided a solid foundation for identifying KPIs and aligning the client's practices with emerging European sustainability reporting standards like CSRD.
- Tailored KPI development: RSM established relationships between sustainability topics and indicators which led to the development of tailored KPIs. This was particularly evident in areas such as climate change and salary gaps, where the client began to consider setting specific goals and improving existing metrics.
Challenges:
- Organisational readiness: RSM recognised that the client's departments were not fully ready to provide detailed sustainability information. To address this, RSM conducted thorough interviews and surveys with management and stakeholders and provided guidance on data collection and reporting requirements. This approach increased awareness across the organisation about the importance of sustainability reporting and the need for better data management.
- Resource constraints: Recognising the client's concerns about the cost, time and effort required for comprehensive sustainability assessments RSM implemented a structured approach that broke down the process into manageable phases. By organising the work in this way, RSM helped the client navigate the complex process more efficiently.
How success was measured
- Increased awareness and preparedness: RSM significantly raised awareness within the organisation about the importance of sustainability reporting and future regulatory requirements. This heightened awareness led to improved interdepartmental communication on sustainability issues and a more proactive approach to data collection and management.
- Sustainability focus: RSM helped the client to align its operations to EU standards which led the client to consider setting climate change goals, which was particularly impactful given their market position in Andorra's electric utility sector.
- Enhanced data management: RSM identified the need for better data quality and control systems, prompting the client to invest in improved data collection and management tools and develop more robust processes for sustainability data verification.
- Futureproofing: By following EFRAG guidelines and considering both European and Andorran regulations, RSM’s approach helped prepare the client for future sustainability reporting requirements. This proactive stance positioned the company ahead of potential regulatory changes, particularly in light of the upcoming CSRD.
Creating a unique offering
The RSM team in Spain successfully enhanced the client’s sustainability practices, positioning them for future regulatory compliance and improving operational efficiency. By increasing awareness, developing KPIs, and focusing on climate change, our client is now better equipped to manage sustainability risks and opportunities, ultimately fostering a more sustainable business model.
