Frequently Asked Questions

Can KEY ESG software be integrated into existing business systems?

ESG’s software seamlessly integrates with over 100 different business applications, including Salesforce, Workday, SAP, and many more.

On the rare occasion that we don’t have an integration set up and ready to go, we can establish one within 24 hours.

We recommend reaching out to a member of our team to discuss how we can integrate our software into your existing systems.

‍

What are the differences between Scope 1, 2, and 3?

Scope 1, Scope 2, and Scope 3 emissions are classifications developed to help organisations understand and categorize their carbon footprint.

Scope 1 emissions are direct greenhouse gas emissions from sources that are owned or controlled by the organisation. This can include emissions from combustion in owned or controlled boilers or furnaces, vehicle emissions, and emissions from refrigeration and air conditioning equipment. Scope 1 emissions are typically the most straightforward to measure and manage, as they stem from sources directly within the company's control.

Scope 2 emissions are indirect emissions associated with the purchase of electricity, steam, heat, or cooling. Although these types of energy are produced off-site, they are considered part of the organisation's footprint because they are a consequence of the firm’s energy use.

Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organisation, but nevertheless, they are produced as a result of the firm’s indirect impact on its value chain. Scope 3 emissions include a wide range of sources such as the production of purchased materials, transportation of purchased fuels, and use of sold products and services. These emissions are the most difficult to measure and manage due to their indirect nature and the complexity of tracking emissions across a value chain.

KEY ESG enables organisations to calculate Scope 1, 2 and 3 carbon emissions.

What is the EU Taxonomy?

The EU Taxonomy is a classification system established by the European Union to guide and encourage investment in environmentally sustainable economic activities.

‍

What is the IFRS?

The IFRS Sustainability Disclosure Standards, developed by the International Sustainability Standards Board (ISSB) were the first set of standards to be recognised globally and adopted unanimously by the G20.

KEY ESG enables organisations to comply with IFRS S1 and S2.

Does KEY ESG software track progress over time?

Yes, it tracks and displays ESG performance over time, allowing businesses to monitor progress, identify trends, and make informed decisions. All of this information can be easily exported into clear visualisations to help communicate progress to stakeholders.

‍

Does KEY ESG offer a free trial?

We offer a free trial version in some circumstances for a limited period, allowing potential clients to experience the software's capabilities first hand. Book a demo today to find out more.

‍

Does KEY ESG software help in meeting regulatory compliance?

Our ESG experts continuously monitor ESG trends and standards, updating our software regularly to reflect the latest ESG-related regulations, helping businesses stay compliant with evolving legal requirements, regardless of their location or industry.

‍

Does KEY ESG provide training for using the software?

We offer comprehensive training sessions, online tutorials, and dedicated customer support to ensure users can effectively utilise the software.

‍

What is ESG management software?

ESG management software is a digital tool designed to help businesses integrate and manage environmental, social, and governance factors in their operations. It facilitates tracking, reporting, and improving ESG performance, aiding sustainable and ethical business practices.

Is ESG management required by law?

Historically, ESG reporting has mostly been mostly voluntary. However, an increasing number of regulators are moving towards mandated reporting and are enforcing a minimum standard of performance. The extent to which a firm needs to report on their ESG metrics is dictated by the geographical scope of the business, its annual turnover, the sector it operates in, and its number of employees.

Most regulators are adopting a phased approach to legislative enforcement, meaning that the inclusion criteria for those who need to reporton their ESG metrics are gradually being expanded. KEY ESG software allows your organisation to remain adherent to all relevant regulations, and stay ahead of the curve if you'd like to get a head start before they come into force.

The following examples illustrate that regulation is in place, or expected to come into place, across each of the three dimensions: Environment, Social and Governance.

The EU Commission's implementation of the Corporate Sustainability Reporting Directive (CSRD) for organisations in the EEA
The FCA's publication of a review into SDR, due in June 2024
The SEC's ongoing review of its Climate Discloure Laws

These are only a few examples and demonstrate the trand towards increasingly strict regulation on ESG metrics across the globe.

What criteria are part of the Environment factor (the E of ESG)?

The environment factor in ESG refers to a company’s impact on our natural environment. Our KEY ESG methodology measures this factor through greenhouse gas emissions, water consumption, land use (for biodiversity risk), energy use, waste management, pollution and natural resource conservation, to name a few.

What criteria are part of the Social factor (the S of ESG)?

The social factor in ESG refers to how a company manages its relationship with its different stakeholders. This includes its employees, supply chain partners, consumers and in addition the local community in which it operates. Our KEY ESG methodology measures this factor by assessing employee diversity and inclusion hiring, gender pay gap analysis, the ratio of CEO versus median pay, labour conditions throughout the supply chain, employee health and safety, employee charitable initiatives and volunteering, and human capital investment through workforce training.

How much time is required from my team to work on ESG?

It depends! KEY ESG supports companies across all stages of the ESG journey, from those who are currently unsure as to what ESG means to them, to those who already have internal ESG management processes in place.

If processes are already in place, we can complete our assessment in as little as two hours. If you are new to ESG, our software user experience is designed to make managing ESG as intuitive as possible. We’ve done the heavy lifting for you, and our software will save you significant time by navigating the myriad of ESG frameworks that are currently available for you.

What is the difference between ESG and sustainability?

Sustainability is a blanket-statement that refers to anything a company does to “do well by doing good”. It is often synonymous with corporate social responsibility. Often, sustainability and corporate social responsibility activities are difficult to measure and quantify, making it challenging to measure both the real impact of these activities and to compare one company’s performance versus anothers. In order to support data-driven evaluations of a company’s performance in the area of sustainability/corporate responsibility the investor community has adopted ESG as the leading method to evaluate a company’s long-term performance through non-financial measures.

What does ESG stand for?

ESG stands for Environment, Social and Governance. Taken together, ESG refers to criteria that assess an organisation’s sustainability and its impact on the environment and society.

Is ESG only relevant for publicly listed companies?

No. Effectively managing ESG unlocks value for any company, whether private or public. ESG isimportant for all types of organisations, including private companies, non-profits, and governmental bodies.

While ESG factors are often highlighted in the context of investment decisions for publicly traded companies, the principles and practices underlying ESG are broadly applicable and beneficial for any organisation when it comes to risk management, creating long-term value, fostering trust, improving access to capital, regulatory compliance, employee attraction and retention, and market competitiveness.

What methodologies, frameworks and regulations are incorporated into KEY ESG software?

KEY ESG’s software uses ESG measurement methodologies as outlined by standard setters, such as the Global Reporting Initiative (GRI). Importantly, our carbon footprint calculators are all in line with the GHG Protocol.

KEY ESG software integrates the industry standard investor frameworks for ESG reporting. This includes, amongst others, the ESG Data Convergence Initiative and the SFDR (Sustainable Finance Disclosure Regulation). As new regulatory frameworks come into effect, our software will automatically flag updates to users, who can then start using KEY ESG to report under the new rules.

Our focus on industry leading frameworks saves managers time when it comes to reporting, as the market is converging on the topic of ESG measurements.

For which industries is ESG relevant?

ESG matters are relevant to all industries. Each company, regardless of its type of operations or end-product or services, will have an impact on ESG through its way of doing business.

In acknowledgement of this, the government has announced that climate-related disclosures will be applied across all industries equally. To account for inherent differences in the ESG outcomes by industry, KEY ESG provides industry-specific benchmarks to ensure your company is compared correctly.

What criteria are part of the Governance factor (the G of ESG)?

The governance factor in ESG refers to how a company is governed, which in turn influences how a company makes decisions, how its board of directors functions, and how it manages risk. Our KEY ESG methodology measures these factors through an assessment of the quality of a company’s board composition considering factors such as tenure, diversity, independence, relevant experience, consultation process for stakeholder issues, anti-corruption policies and reporting mechanisms for ethical and unlawful behaviour (whistleblower scheme).

What are the benefits of effective ESG management?

Effectively managing your company’s ESG performance allows you to unlock sustainable business value and helps firms to differentiate themselves from their competition. Incorporating ESG factors into day-to-day business processes supports long-term value creation.

A company’s interaction with the environment, regulators, and other stakeholders impacts upon its long-term competitiveness, reputation, and success. Performance with regards to ESG matters can determine whether or not a firm receives a business loan from the bank, whether it is given support from regulators or a fine, and whether or not it is successful in public procurement. These factors help attract the best talent and investors, and increasingly impact upon share price performance (for listed companies), cost of capital, and value creation potential.

What are the benefits of using KEY ESG's ESG software solutions?

Our ESG reporting software solutions offer several benefits, including a secure and user-friendly interface, a comprehensive approach to ESG policies (including carbon accounting), automated ESG calculations, constant updates via the cloud, and support from our team of ESG experts. Our software helps companies save time, energy, and resources, and align their ESG initiatives with their business and ESG goals.

What is risk management in the context of ESG and sustainability?

In the context of ESG and sustainability, risk management refers to the practices and processes companies use to identify and mitigate environmental, social, and governance risks that could negatively impact their sustainability performance. This includes identifying ESG risks, assessing their potential impact, and implementing strategies to mitigate those risks.

What does sustainability management mean?

Sustainability management refers to the practices and processes companies use to manage their sustainability impact and improve their overall sustainability performance. This includes the measurement of ESG metrics, risk management, and communicating sustainability data to stakeholders.

How does KEY ESG help with sustainability management?

KEY ESG's software provides a holistic solution for sustainability management, helping companies measure and manage their ESG metrics, manage risk, and communicate their sustainability performance data to stakeholders. Our ESG reporting software also offers real-time updates, data interpretation and visualisation, and ready-to-go reports to help companies understand their sustainability performance and make informed decisions.

What is Environmental, Social, and Governance (ESG) reporting?

ESG reporting refers to the process of evaluating and communicating a company's performance based on environmental, social, and governance (ESG) metrics. This process helps companies measure and manage their ESG impact, communicate their sustainability story to stakeholders, and improve their overall sustainability performance.

How does KEY ESG's software help with ESG reporting?

KEY ESG's software provides a comprehensive and intuitive solution to the challenges posed by ESG reporting. Our software helps companies automate their ESG data processes, measure their ESG metrics in real-time, track and compare their performance, and generate ready-to-go reports based on industry-leading standards and relevant regulations.

How does KEY ESG help with risk management in the context of ESG and sustainability?

KEY ESG's software provides comprehensive risk management tools to help companies identify and assess ESG risks, and track progress made towards mitigating those risks over time. Our software also helps companies understand the potential impact of ESG risks on their sustainability performance, providing insights to help them make informed decisions.

What is the reporting process for ESG and sustainability?

The reporting process for ESG and sustainability typically involves the following steps: data collection, metric calculation, data analysis, report generation, and report dissemination. The data collection process gathers relevant ESG data from internal and external sources, while the data analysis process evaluates and interprets the data to facilitate a better understanding of the company's ESG performance. The report generation process creates reports based on industry-leading standards and prevailing ESG regulations, while the report dissemination process involves sharing the report with stakeholders.

How does the KEY ESG software work and what does it help me manage?

KEY ESG's software enables investors and companies collect, report on and improve the relevant ESG metrics for their business.

Our user-friendly dashboards can be accessed from anywhere, at anytime and provide a collaborative platform to collect ESG data. Our software sense-checks and verifies the data and provides reports which can be shared with relevant stakeholders. It aligns with all the major global ESG regulations and helps investors and companies reduce the amount of time spent on compliance. KEY ESG software users can also view their ESG data in charts and tables and compare it to industry benchmarks. This means you can understand your ESG performance and see where improvement opportunitites are available.

‍

When does the CSRD reporting deadline start?

The first phase of companies who need to report on the Corporate Sustainability Reporting Directive (CSRD) will be required to report their 2024 data in January 2025. That means getting ready now. Companies which are in-scope should start to get a reporting plan and the necessary tools in place to ensure 2024 data collection is structured and seamless.

How do I comply with CSRD?

CSRD compliance does not have to be a headache. With the right processes and technical tools in place, you can prepare your business for the transition seamlessly. Contact one of our experts to take the first step.

Which companies fall within CSRD scope?

Listed companies: CSRD will apply to companies which meet any of these criteria:

Publicly listed on any stock exchanges in the European Union, with more than 10 employees or EUR 25 million in revenue
International and non-EU companies with more than EUR 150 million annual revenue within the EU and which have at least on subsidiary or brand in the EU exceeding certain thresholds

Large private companies: CSRD will also apply to companies which meet two of the following three criteria:

Over 250 employees
More than EUR 50 million in annual revenue
More than EUR 20 million in total assets

What is the difference between NFRD and CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is an updated and expanded version of the existing Non-Financial Reporting Directive (NFRD). The CSRD is an EU legislative initiative that aims to enhance the transparency and comparability of sustainability reporting by companies in the region.

What is the aim of CSRD?

The aim of the Corporate Sustainability Reporting Directive (CSRD) is to enhance the transparency, consistency, and comparability of sustainability reporting by certain companies in the European Union. The CSRD builds upon the existing Non-Financial Reporting Directive (NFRD) and seeks to address its limitations by introducing more robust and standardized reporting requirements.

Does KEY ESG incorporate ESG regulations in its software solutions?

KEY ESG keeps track of global ESG regulatory developments. We have incorporated major ESG regulations such as the SFDR, CSRD, SEC and SRD in our reporting software tool and we help our users measure and report on the metrics they need to disclose to regulators. KEY ESG users can rest assured that we update these metrics as new regulatory requirements or changes to existing requirements are announced.

What is CSRD double materiality?

Double materiality means that companies are required to assess and disclose information about the environmental, social, and governance (ESG) factors that can affect the company (internal impacts) as well as the ESG factors that the company, through its activities, products, and services, affects externally (external impacts).

Is KEY ESG software secured?

The short answer is yes, KEY ESG software follows cybersecurity best practices to keep your data secured. KEY ESG uses encryption at multiple layers in the platform, we leverage managed services which provide high levels of security using their default security controls. Traffic in-transit is secured with HTTPS. Requests are encrypted between the customer and an application load balancer, which will decrypt the request and forward it onto our application servers which are hosted in a private virtual cloud network in AWS.
In-transit traffic between our application servers and Azure is secured with SSL/TLS and the data itself is encrypted at-rest which also includes backups and temporary files created when running queries.

Frequently asked questions

Thoughts from our ESG experts...

Empower external stakeholders with secure, streamlined data access: introducing the Data Viewer role

An introduction to FLAG emissions: why they matter for your business today

Staying the course on CSRD: a Q&A webinar with Wittur