Sustainability in now critical for supplier relationships in shipbuilding

The shipbuilding industry is experiencing a transformative shift, driven by the urgency and strategic importance of sustainability programs. As we navigate this evolving landscape, it’s evident that sustainability is no longer just a buzzword—it’s a decisive factor in supplier selection and business success for this industry. The Rising Stock of GHG Emissions and Sustainability European clients are at the forefront of this shift, demanding detailed sustainability goals, comprehensive Environmental, Social, and Governance (ESG) reports, and Climate Disclosure Project (CDP) submissions. These requirements are not mere formalities; they are becoming critical benchmarks for business viability in the global market. Sustainability goals are no longer just aspirational statements; they are concrete, measurable objectives that companies must set and achieve. These goals often encompass reducing greenhouse gas emissions, minimizing waste, and enhancing energy efficiency. Comprehensive ESG reports provide stakeholders with a transparent view of a company’s environmental impact, social contributions, and governance practices. CDP submissions, in particular, are crucial for tracking and managing carbon footprints, helping companies identify areas for improvement, and report their progress to investors and clients. The Imperative of EU Regulations The urgency of compliance is driven by the European Union’s stringent regulations, such as the Carbon Border Adjustment Mechanism (CBAM). This regulation imposes a carbon tariff on imported goods, making it imperative for companies to report the carbon footprint of their products. The shift is leading clients to re-evaluate their suppliers, and favoring those who are committed to carbon neutrality and sustainability goals aligned to EU regulations. CBAM aims to prevent carbon leakage by ensuring that imported goods are subject to the same carbon costs as products manufactured within the EU. This means that companies must not only understand their carbon emissions but also take steps to reduce them. Additionally, the upcoming Corporate Sustainability Due Diligence Directive (CSDDD) requires companies to identify, prevent, and mitigate adverse human rights and environmental impacts in their operations and supply chains. Compliance with these regulations is becoming essential for maintaining access to the European market. Leading the Way in ESG Commitment At Ecodrisil, we recognize that embracing and advancing our ESG commitments is not just about meeting regulatory requirements. It’s about positioning ourselves as industry leaders, setting the standard for sustainable practices, and driving innovation in our field. We are committed to:  Setting Clear Sustainability Goals: We will establish and transparently communicate our sustainability objectives, ensuring they align with the highest industry standards. Delivering Comprehensive ESG Reports: Our reports will provide detailed insights into our environmental, social, and governance practices, reflecting our commitment to transparency and accountability. Achieving CDP Submissions: We will diligently track and report our climate impact, working towards reducing our carbon footprint and enhancing our environmental stewardship. Ensuring Compliance with CSDDD: We will proactively align our operations with the upcoming CSDDD regulations, demonstrating our dedication to sustainable and responsible business practices. By prioritizing these areas, we aim to not only meet the demands of our European clients but also to inspire and lead the industry towards a more sustainable future. Ecodrisil: Pioneering sustainability reporting for Shipbuilding sector We are ready to embrace this challenge and lead by example, to make sustainability a cornerstone of the business strategy of the marine industry. Together, we can navigate the new era of sustainability in shipbuilding and set a benchmark for excellence in ESG practices. Let’s lead the way in embracing and advancing our ESG commitments! Join us on this journey towards a sustainable future.

SEC rules for climate-related disclosure are out – how it differs to IFRS and CSRD?

SEC rules for climate-related disclosure are out – how it differs to IFRS and CSRD?

As a sustainability professional, you have likely been tracking the recent proliferation of environmental, social, and governance (ESG) reporting frameworks. With IFRS Sustainability Disclosure Standards S1 and S2, the EU’s Corporate Sustainability Reporting Directive (CSRD), and the SEC’s new climate disclosure rules all hitting within a short timeframe, it can be challenging to keep up with the pace. SEC adopts rules for climate-related disclosures On March 6th 2024, the U.S. Securities and Exchange Commission (SEC) proposed rules requiring public companies to report on climate-related risks and greenhouse gas emissions. The rules mandate disclosure of material climate impacts and transition risks, including their effect on financial statements and SEC filings. Companies must obtain assurance and audit of Scope 1 and 2 emissions as part of these disclosures. IFRS S1 and S2 & CSRD The IFRS is a private Sustainability Standards Board and they issued two sustainability reporting standards in 2021: S1 and S2. S1 outlines general sustainability norms and S2 addresses climaterelated disclosures. These standards require companies to report material ESG information that affects enterprise value. The Corporate Sustainability Reporting Directive (CSRD) aims to make sustainability reporting mandatory for all large EU companies starting with 2024. The CSRD specifies reporting standards and key performance indicators (KPIs) on environmental, social and governance (ESG) factors. Companies must disclose how sustainability issues affect their business and report on due diligence processes. Unlike SEC and IFRS that focus more integrating ESG materiality topics to financial reports, CSRD aims at broader double materiality assessment. Key differences between IFRS, CSRD and SEC Under IFRS S1 and S2, companies are required to disclose material ESG risks and opportunities that impact enterprise value. Materiality is assessed based on financial materiality. In contrast,the CSRD adopts a double materiality perspective, requiring disclosure of ESG matters that are material from both a financial and sustainability impact perspective. SEC and IFRS S1 and S2 have relatively limited disclosure requirements, focusing mostly on climate-related risks and opportunities. SEC has only proposed to cover Scope 1 and 2 emissions, whereas IFRS has proposed to include Scope 3 emissions too. However CSRD requires more extensive disclosures across a wider range of ESG topics, including environment, social, human rights, corruption and bribery. Under IFRS S1 and S2, materiality is assessed based solely on financial materiality, i.e. the potential impact of ESG issues on the company’s financial position or performance. The CSRD requires companies to determine materiality based on both financial materiality and the sustainability impact of the company’s activities. This dual materiality approach aims to capture ESG risks and opportunities that may be financially immaterial in the short term but material from an environmental and social impact perspective. Conclusion In summary, while the onset of SEC and IFRS S1 and S2 standards will catalyse ESG financial reporting, the CSRD proposes more comprehensive disclosures and a wider materiality assessment. Though the number of companies that are mandated to make the disclosures as per these standards are still limited mostly to public companies and larger enterprises, it make sense for even the smaller companies monitor these developments to ensure that they have solid frameworks in place for ESG reporting, risk assessment and submitting timely disclosures not only for regulatory purposes but also for gaining the trust of suppliers, clients and other stakeholders.

Debunking the 3 Myths of ESG Reporting

Do you think that ESG reporting is too complex for your organization to implement and would require significant investments of time and resources with little benefit? However, that is simply not the case. Don’t let the perceived complexity around ESG data management and reporting decelerate your progress towards becoming a responsible business, generating long term value for all the stakeholders alike. Myth #1: ESG reporting is too time consuming and complex Many companies believe that implementing ESG reporting will require a monumental time commitment and delay other organizational priorities. However, the reality is that even teams with limited resources can easily streamline and manage the entire ESG reporting process through a strategic approach and enabling technology. The process can be made highly efficient. In any ESG assessment and assurance process, approximately 80% of the time is typically spent collecting the necessary data from various sources. Modern ESG reporting platforms have been shown to reduce this effort by over 50%. It is important to ensure only essential data is gathered to evaluate and communicate progress on material topics. Filters can be applied during data collection to focus on relevant information, accelerating the entire process. Advanced platforms automatically import information from existing systems and databases through built-in integrations. Automated validations and checks then ensure data accuracy and compliance before inclusion in ESG reports and disclosures. Cutting-edge technologies now enable the automated generation of fully formatted reports, saving considerable time. Rather than detracting from other initiatives, ESG reporting automation allows sustainability teams and departments to analyze and improve ESG performance to drive meaningful impact. Time savings can be substantial, in some cases reducing reporting cycles from months to mere weeks or days. Reporting software also simplifies creation using pre-defined templates, facilitating production of GRI, SASB, TCFD and UNGC compliant documents. Myth#2: Using AI for ESG Reporting is risky While using AI for ESG reporting carries risks that must be managed, potential rewards should also be considered. Many perceived risks can be addressed. Bias and unfairness can be avoided by training AI models on comprehensive, real-world ESG datasets. Lack of transparency is addressed through explainable AI that can provide you with simple illustrations as to why it arrived at specific conclusions or decisions. Job disruption risks are mitigated through change management, retraining and focusing automation on repetitive tasks. Data quality risks are minimized via governance ensuring data integrity, representation and consent. Strategic, risk-aware adoption allows benefits while avoiding potential issues. AI should augment, not replace, human judgment. Myth #3: ESG Reporting Software is Expensive ESG reporting solutions are sometimes viewed as complex systems requiring extensive implementation. However, modern platforms prioritize usability and simplicity. Cloud-based options provide on-demand access through affordable subscription models without large upfront costs or hardware procurement. Software can be configured for specific needs and standards, and adapted efficiently as requirements change without customization. Pre-built integrations facilitate data collection from various sources with minimal manual effort. Dashboards clearly present metrics and trends to inform strategic decisions, while automated alerts notify stakeholders to issues requiring attention. Basic solutions exist for smaller organizations with modest needs. The goal is to make ESG reporting as streamlined and cost-effective as possible at any stage of the sustainability journey. Technology partners can help companies strengthen transparency and meet stakeholder information needs through an efficient approach. In summary, modern ESG reporting tools are designed for ease-of-use, flexibility and affordability when implemented appropriately. They empower proactive and strategic reporting rather than viewing it as an administrative burden. The notion that solutions must be overly complex or expensive is a myth that should not discourage exploration of how software can benefit organizations. Conclusion: Embrace How AI and Automation In conclusion, AI and automation are overcoming common misconceptions about ESG reporting complexity. They are making the process simpler, faster and more credible. Forward-looking companies are leveraging these technologies to strengthen ESG performance and disclosure to build long-term competitive advantage and value. Organizations should explore available technology solutions that can help achieve aspirational sustainability goals and accelerate your progress in an efficient, cost-effective and transparent manner. To learn more about how Ecodrisil can take on the ESG reporting for your company, please contact us today.  #ESGAI #ESGReportingUAE #ESGReportingtoolsUAE #ESGreportingtools #ESGGRI #ESGSASB #ESGUAE #SustainabilityreportingUAE #SustainabilityreportingtoolsUAE

Navigating the ESG Landscape with Ease: A Guide for UAE Banks Powered by Ecodrisil ESG Xpress


In the dynamic and ever-evolving financial landscape of the UAE, sustainability has emerged as a critical cornerstone for success. Environmental, social, and governance (ESG) principles are no longer mere buzzwords; they are the driving force behind responsible banking practices and a commitment to a sustainable future. As the UAE embarks on a transformative journey towards a sustainable economy, banks across the country are recognizing the importance of integrating ESG principles into their operations. However, many sustainability managers face inhibitions and blockers that prevent them from fully embracing ESG principles and adopting tools like Ecodrisil ESG Xpress. Addressing Common Inhibitors and Blockers 1. Complexity and Time Commitment: Sustainability managers often cite the complexity of ESG reporting and the time commitment required as significant barriers to adopting ESG software. Ecodrisil ESG Xpress simplifies the process with its user-friendly interface, automated data collection, and streamlined reporting capabilities (powered by #ESGAI™copilot), freeing up time for sustainability managers to focus on strategic initiatives. 2. Data Integration and Accuracy: Concerns about data integration and accuracy often deter sustainability managers from adopting new ESG software. Ecodrisil ESG Xpress seamlessly integrates with existing data systems, ensuring data accuracy and consistency. Its AI-powered data analysis capabilities further enhance data reliability and provide valuable insights. 3. Cost and Return on Investment: Sustainability managers often hesitate due to budget constraints and uncertainty about the return on investment (ROI) of ESG software. Ecodrisil ESG Xpress offers a scalable and cost-effective solution that delivers a tangible ROI through enhanced reputation, risk mitigation, innovation, and regulatory compliance. 4. Lack of Internal Expertise and Support: Sustainability managers may lack the internal expertise or support to effectively implement and utilize ESG software. Ecodrisil provides comprehensive training and ongoing support to ensure a smooth transition and maximize the value of the software. Unleashing the Power of AI for ESG Excellence Ecodrisil ESG Xpress is not just a reporting tool; it is an AI-powered ESG management platform that empowers sustainability managers to: 1. Automate Data Collection and Analysis: Data collection with Smart Forms reduces manual data gathering effort, ensuring data accuracy and timeliness. 2. Identify and Prioritize Risks: AI algorithms identify and prioritize ESG risks, enabling proactive risk mitigation strategies and informed decision-making. 3. Gain Predictive Insights: AI-powered analytics provide predictive insights into future ESG performance, allowing sustainability managers to anticipate trends and make proactive adjustments. 4. ESGAI™ powered Reporting studio: Auto draft high quality ESG reports in minutes with the help of #ESGAI copilot helping you to boost transparency and trust. 5. Benchmark Against Industry Best Practices: AI-driven benchmarking tools compare a bank’s ESG performance against industry leaders, enabling continuous improvement and competitive advantage. A Call to Action for UAE Banks The time for complacency is over. The urgency to embrace ESG principles is not just a matter of reputation or compliance; it is a matter of ensuring long-term sustainability, contributing to a greener, more equitable future for generations to come, and gaining a competitive edge in the evolving financial landscape. Ecodrisil ESG Xpress stands as a catalyst for UAE banks to embark on their ESG journey with confidence. By leveraging this innovative AI-powered tool, banks can streamline ESG reporting, manage risks effectively, enhance their overall ESG performance, and gain a competitive advantage. The decision to adopt Ecodrisil ESG Xpress is not just a technological upgrade; it is a commitment to a sustainable future, a declaration of responsible banking practices, and a step towards a more resilient and prosperous UAE. Embark on Your ESG Journey Today Join the growing community of UAE banks embracing ESG principles and shaping a sustainable future. Contact Ecodrisil today to learn more about ESG Xpress and how it can transform your bank’s ESG journey. Together, we can create a more sustainable and prosperous UAE for all. To learn more about how Ecodrisil can take on the ESG reporting for your company, please contact us today.  #ESGReportingUAE #ESGReportingtoolsUAE #ESGreportingtools #ESGGRI #ESGSASB #ESGUAE #ESGAI #SustainabilityreportingUAE #SustainabilityreportingtoolsUAE

ESG reporting in UAE, navigating ESG compliance and reporting in the UAE

In the United Arab Emirates, the landscape of business is evolving rapidly. A new era is dawning, one where Environmental, Social, and Governance (ESG) considerations are no longer optional but essential. Whether you’re a business leader, investor, client, or regulator, the demand for greater transparency in ESG performance is becoming increasingly prevalent. But how can UAE organizations ensure that their ESG measurements and disclosures truly reflect their performance and set actionable targets for improvement? While mandatory ESG reporting is not yet a requirement in the UAE, it is gaining momentum globally. With mandatory ESG reporting in some form is in place in regions like the European Union, Australia, Malaysia. the United Kingdom, UAE companies with international operations are impacted. The time is ripe for UAE businesses to implement comprehensive, integrated ESG reporting as a means of delivering value to investors, clients, and employees, all while preparing for potential future regulatory requirements. According to 2022 Global CEO Outlook survey by one of the Big 4 consulting firm, 69% of CEOs see significant stakeholder demand for increased transparency and reporting on ESG matters (up from 58 percent in 2021). Next to this, 72 percent feel that stakeholder scrutiny regarding ESG issues — such as climate change and gender equality — will continue to accelerate. Additionally, more than one-third believe their organizations struggle to narrate a compelling ESG story. Why ESG reporting? Who Benefits from ESG Reporting? 1. Investors: Private investment funds and pension funds are under increasing pressure to report on the sustainability of their portfolios. This places additional demands on corporations to provide overviews for consolidation. A report by BNP Paribas revealed that 60% of pension fund managers would only invest in companies that offer comprehensive ESG reporting. 2. Clients: As organizations focus on supply chain sustainability, ESG positions are becoming a key part of supplier due diligence. Requests for proposal (RFPs) now commonly include questions regarding a supplier’s environmental impact, human rights record, and anti-corruption policies. 3. Colleagues: Employees increasingly view ethical standards as a fundamental expectation from their employers. In a competitive labor market, companies that lack detailed ESG reporting may struggle to attract top talent. 4. Regulators: Across the globe, regulatory authorities are passing legislation requiring more comprehensive ESG disclosures. A Journey, Not a Destination ESG reporting is an ongoing journey, not a one-time task. To establish, implement, and maintain the necessary reports for ESG compliance, three phases of work are required. 1. Definition: Identifying the ESG standards that need to be met. This is driven by external stakeholders such as regulators, shareholders, lenders, clients, and internal functions, and governed by internal personnel such as head of sustainability. 2. Setup: To jump start your ESG journey and track your ESG performance and report it effectively, a easy to use yet complete ESG reporting platform such as Ecodrisil ESG has to set up immediately. Some organizations may require the use of consultants and auditors subsequently. 3. Maintenance: Consistently gathering data, tracking progress, and providing periodic reports on ESG performance using the ESG reporting tool such as Ecodrisil ESG. Ongoing engagement with external stakeholders, internal functions, and external support is critical. Time to get onboard with ESG, sustainability Many of you might have seen the sustainability video Apple released during their recent iPhone 15 event in Sept. ’23. One of the key take away here is, a company of Apple’s stature has to start using sustainability ESG as a competitive advantage. A journey of a thousand miles begins with a single step. The important thing is to get started. There is no need for costly consulting services or complex climate accounting software to get started with your ESG, sustainability programs. Output from an essential materiality assessment, your initial ESG goals, strong executive sponsorship, one personnel with essential knowledge of ESG, sustainability to drive the program and a ESG performance and reporting tool is good enough to start for a large number of organisations. How can Ecodrisil ESG Xpress, powered by AI help? UAE businesses have a generational opportunity to take the initiative and implement a comprehensive, automated and easy to use ESG reporting platform to create added value to their investors and tap the strategic opportunity. As a UAE-based company with R&D centre in India, Ecodrisil is at the forefront of the ESG transformation. Our platform, Ecodrisil ESG Xpress is powered by specialised AI-powered capabilities (ESGAI™), simplifying ESG reporting and ensuring compliance with global standards. By partnering with us, UAE organizations from all industry segments can efficiently navigate the journey towards comprehensive ESG reporting, empowering them to meet global regulations, attract investors, satisfy clients, and engage top talent. Are you ready to embark on your ESG reporting journey? Let Ecodrisil be your guide, providing the tools, expertise, and support you need to make a lasting impact on your sustainability goals. With Ecodrisil ESG Xpress, your journey towards ESG compliance and reporting is not just an obligation; it’s a strategic opportunity. To learn more about how Ecodrisil can take on the ESG reporting for your company, please contact us today.  #ESGReportingUAE #ESGReportingtoolsUAE #ESGreportingtools #ESGGRI #ESGSASB #ESGUAE #ESGAI #SustainabilityreportingUAE #SustainabilityreportingtoolsUAE

ESG performance management and reporting for medium sized business

Today, we address a critical topic that should be at the forefront of every medium-sized company’s agenda: ESG performance management and reporting. As the world shifts towards a more sustainable future, embracing ESG practices is no longer a choice—it’s an imperative. Let’s explore why getting started on this journey is both urgent and essential: 1. Stakeholder Expectations Customers, investors, employees, and communities increasingly demand transparency and accountability in ESG matters. By adopting ESG performance management and reporting, you demonstrate your commitment to responsible business practices and address the expectations of your stakeholders. This builds trust, enhances reputation, and fosters long-term relationships. 2. Regulatory Compliance Governments and regulatory bodies worldwide are enacting stringent ESG-related regulations. Non-compliance can lead to penalties, reputational damage, and missed opportunities. By proactively implementing ESG performance management and reporting, you ensure compliance with existing and upcoming regulations, safeguarding your business operations and mitigating risks. 3. Competitive Advantage In a business landscape where sustainability is becoming a key differentiator, integrating ESG into your operations gives you a competitive edge. ESG-minded customers are increasingly making purchasing decisions based on an organization’s environmental and social impact. By demonstrating your commitment to ESG, you attract and retain customers, outperform competitors, and unlock new business opportunities. 4. Access to Capital and Investment Investors are increasingly prioritizing ESG considerations when making investment decisions. By establishing robust ESG performance management and reporting, you enhance your attractiveness to socially responsible investors, opening doors to capital and funding opportunities. Aligning your organization with ESG principles can fuel your growth ambitions and strengthen financial stability. 5. Sustainable Growth and Resilience ESG performance management and reporting enable you to systematically measure, track, and improve your environmental, social, and governance performance. By identifying areas for improvement, implementing sustainable practices, and managing risks, you drive long-term growth and build resilience against market disruptions. Embracing ESG is an investment in your organization’s future success. The time to act is now. Medium-sized companies have a unique opportunity to lead the way in sustainable business practices, unlocking a myriad of benefits while making a positive impact on the world. We at Ecodrisil ESG can help you identify ESG areas for improvement, implement sustainable practices, make corrective action plans and make ESG data collection and reporting a lot easier and affordable.