In today’s world, where sustainability is not just a buzzword but a business imperative, companies are under increasing pressure to transparently report their environmental impact. **BASF**, one of the largest chemical producers globally, is leading this charge, leveraging advanced tools like **Enablon** to elevate its approach to sustainability reporting. This article explores how BASF navigates the **Corporate Sustainability Reporting Directive (CSRD)**, ensuring accountability and trust through robust reporting practices.
The Need for Compliant Sustainability Reporting
As per the Corporate Sustainability Reporting Directive (CSRD), companies operating within the EU must provide extensive annual management reports. These reports must detail not just their sustainability impacts, but also how these affect the company’s development and performance. With this in mind, BASF recognized the urgency of enhancing its reporting practices.
BASF’s Commitment to Transparency
With a long-standing dedication to **environmental protection and social responsibility**, BASF aims to secure **reasonable assurance** of its sustainability data quality. This commitment reflects their desire to build **stakeholder trust**, lead by example, and bolster risk management practices.
Evolving Reporting Standards
Prior to 2018, BASF utilized the Global Reporting Initiative (GRI) indicators for sustainability reports, offering comprehensive disclosures under limited assurance. Since then, BASF has not only maintained the GRI reporting but has also incorporated essential **operational greenhouse gas emissions (Scope 1 and Scope 2)** as steering indicators to bolster assurance quality.
Navigating the Path to Assurance
BASF’s journey towards achieving reasonable assurance began by expanding its **Environmental, Health, and Safety (EHS)** reporting requirements. This initiative aimed to ensure that their reports present a “**true and fair**” picture of their ESG performance, confirmed by independent auditors as compliant with **European Sustainability Reporting Standards**.
Enhancing Data Monitoring and Reporting
The company developed an internal standard for greenhouse gas monitoring that employed **stringent methodologies for estimation, calculation, and measurement**, along with robust internal controls at the site level. With the integration of **Enablon’s Metrics module**, BASF streamlined greenhouse gas monitoring directly into its **financial compliance process**.
Advancements in Data Collection
In 2024, BASF’s data collection underwent a significant upgrade, shifting from the site level to the plant level. This transition was supported by **automated data collection** and quality control features in the **Enablon Air Quality module**, creating a **transactional system** that effectively consolidates data from plants to sites and then to the corporate level.
Moreover, BASF’s plants with the highest greenhouse gas emissions adopted a more frequent **reporting cycle**. Shorter data collection periods combined with a plant-level focus have opened the door for more **detailed and timely emissions data**. Additionally, the **Enablon software’s dashboarding tools** provide enhanced visualization of **intra-site allocation** of indirect emissions, supporting improved decision-making processes.
Transformative Results from Reasonable Assurance
The shift towards reasonable assurance has yielded significant business outcomes. BASF has achieved greater **granularity** and **transparency** in its data while boosting the efficiency of data gathering. These improvements not only enhance the **frequency of reporting** but also ensure that stakeholders have access to the most accurate information on greenhouse gas emissions. In fact, BASF is set to increase its reporting frequency to a **monthly basis**, marking a noteworthy evolution in its sustainability commitments.
Conclusion: A Leader in Sustainable Reporting
In summary, BASF’s collaboration with Enablon has revolutionized its approach to sustainability reporting. By refining its data standards and internal controls, BASF has achieved better data collection, increased data volume, enhanced analysis capabilities, and more efficient reporting processes. These steps are crucial as they pave the way toward achieving **reasonable assurance** in sustainability reporting.
Curious about how **Enablon**’s Metrics module can assist you in meeting CSRD standards with greater transparency and data quality? Don’t hesitate to contact Enablon today!
