With new regulations in place to guide ESG reporting, corporations are already making the move to embrace more sustainable practices.
The race to reach meet new ESG standards
As both US and EU regulatory bodies moved to increase ESG reporting requirements in 2022, companies are already taking action to align themselves with the new requirements.
Specifically, Belgian financial services company Euroclear has announced their investment in fintech company Greenomy in an attempt to improve its ESG reporting process.
Founded in 2021, Greenomy is new on the scene – its aim is to provide companies with the software necessary to meet ESG reporting regulations. Greenomy has already secured a substantial investment from Euroclear, which bodes well for the future of the platform – and for the future of companies like Greenomy.
Every company in the EU and US will be subject to the new reporting regulations – this means we will likely be seeing even more corporations take up Euroclear’s approach. We will also be seeing more small and innovative companies that offer ESG services gaining traction and funding as companies scramble to meet their goals.
But what’s the rush?
The newly imposed EU ESG standards must be met by 2026 – this means that companies have only a few years to establish a working system that complies with the regulations. Therefore, they have no time to waste in finding and investing in software to help them reach their goals.
Greenomy is only one of the platforms that provides software compatible with enhanced ESG reporting and sustainable business practices. For example, Metamaze aims to make the handling and processing of data more efficient by automating the process of data entry. In fact, there are many more new and promising companies making use of innovative technologies to manage ESG reporting – and we should expect to see them flourish throughout 2022.
So, here’s the systemCHANGR take
This is an exciting time for ESG. As ESG issues become more widely recognized, even more sustainable start ups will enter the scene – and they’ll have much more power than ever before. As regulations continue to develop around sustainable practices, more companies will be in need of these services – and we’re excited to see how this shapes the conversation surrounding ESG.
Reporting by Isabella Murray – McKay