Author: Andy Curley, P2P/SCM Practice Lead at Namos Solutions
Companies today, whether they are small or large conglomerates, are under increasing pressure from regulators, investors, and customers to report on their performance with respect to a wide array of Environmental, Social, and Governance (ESG) metrics. In the Environmental arena, companies are expected to track and report on their energy consumption, greenhouse gas emissions, and water consumption, as well as the quantities of waste they generate and how they dispose of it.
In the marketplace there are several system solutions available to meet these ESG requirements for every company, and for those companies who currently operate Oracle Fusion as their ERP, then there is a range of potential options to fulfil these ESG metrics which are fully integrated with Oracle Cloud Financials and Oracle Cloud Procurement.
Oracle Cloud’s EPM Sustainability tooling and Oracle Cloud Sustainability module (due to be released in 24D) are the gold standard. These solutions would certainly achieve any client’s Environmental, Social and Governance reporting requirements, as these Oracle Cloud integrated module solutions provide comprehensive performance management reporting solutions, delivering improved reporting accuracy, transparency and compliance to all stakeholders and regulators alike.
Oracle Cloud’s EPM Sustainability and Oracle Cloud’s Sustainability solutions, both help integrate financial and nonfinancial data, fulfilling more than just your ESG reporting requirements, but also enabling businesses to make data driven decisions across their business functions.
While the above gold standard options provide the most comprehensive solutions for ESG reporting, organisations in the earlier phases of their ESG journey may struggle to fully use this powerful toolset and not have the business policies and processes in place ready to adopt such a comprehensive solution. However, organisations still need to report on emissions as they progress on their ESG journey.
So, what other option do we have to meet these Environmental Business goals?
Namos has built an eNvironmental reporting solution which enables companies to be able to report upon their Greenhouse Gas emission footprint (Scope 1, Scope 2 & Scope 3) using a range of standard functions within Payables, Inventory, Procurement and potentially Expenses modules. Most Oracle Cloud ERP users will have these modules configured as a standard offering and these modules combined with the eNvironmental reporting solution can enable companies to meet their ESG reporting requirements, whilst complying with regulatory requirements and achieving business driven energy goals.
So how does Namos achieve these environmental solution goals with eNvironmental?
The solution can work on several functions/requirements such as
- Calculating Greenhouse Gas Emissions using Products and Services
- Tracking Greenhouse Gas Emissions using Accounts Payable Invoice Information
The functions are deployed to meet each client’s ESG requirements, this could be extended to use Business Expense information taken from Oracle Cloud Expenses module:
- Tracking Greenhouse Gas Emissions using Expenses and associated Accounts Payable Invoice Information.
The Namos eNvironmental solution uses the ‘UK Government GHG Conversion Factors for Company Reporting’ guidelines as their source for emission factors, ensuring that the resultant reporting provides valid data.
With the above information, companies facing the challenge of complying with regulatory legislation whilst meeting the Company’s Environmental Business goals, should look to deploy the eNvironmental solution.
It is a structured, flexible, and scalable solution using standard Oracle Cloud Financial, Procurement, Inventory and Expenses module information. It facilitates simplicity in ESG reporting, even when using multiple data source routes, enabling businesses to meet their ever-growing business goals whilst adhering to ESG metrics.
The eNvironmental solution offers speed to value. The report can progress from initial deployment into your test environment, through configuration to your specific scenarios for capturing emissions data, through testing and validation, and into production in two to four weeks, depending on those specific scenarios to which the report must be configured.
Our customers are already benefiting from this reporting tool and are using it to support decision making, leading to a positive environmental impact. Please get in touch to discuss how eNvironmental can support your organisation in reporting your Environmental goals, as part of full ESG reporting.
