Shaping your organization for ESG reporting

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Having worked with many multinational companies, KPMG professionals have observed a continuum of reporting infrastructure ranging between two generic approaches:

Centralized

The centralized structure enables interdepartmental collaboration through specialist central departments, committees and/or steering groups, which could include the Sustainability department, Group Sustainability Board, Chief Sustainability Officer (CSO), and Sustainability Committee. Either the Management Board or CFO/CEO are responsible for monitoring. Their responsibilities include defining sustainability strategy, material topics, and coordination of accountabilities. In this kind of set-up, directives tend to be top-down, although there is some flexibility with decentralized responsibility for collecting and processing data.

Decentralized/hybrid

The other main structure is more of a hybrid, consisting of a group sustainability board that integrates the organization through working with relatively autonomous countries, regions, corporate functions and division functions. These companies tend to have some, but not all, ESG reporting responsibility within the executive board, with some decentralizing tasks to the individual departments, business units or entities, and others managing duties.

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