New ESG reporting capabilities with Microsoft Cloud for Sustainability

New instruments can play a important function in serving to organizations put together for CSRD. 

It’s been a 12 months of many advances for Microsoft Cloud for Sustainability. Now, with the anticipated onset of latest environmental, social, and governance (ESG) reporting laws, together with these coming from the European Union’s Company Sustainability Reporting Directive (CSRD), we’re asserting highly effective new capabilities to assist organizations gather and handle extra ESG knowledge. Microsoft Sustainability Supervisor, a Cloud for Sustainability resolution, is being expanded to offer prospects fuller visibility into their environmental affect throughout carbon, water, and waste. And new capabilities will assist prospects create a complete ESG knowledge property and put together to satisfy new reporting necessities. 

Learn on to study these newest updates. You may also be part of Microsoft Chief Sustainability Officer Melanie Nakagawa and different sustainability leaders exploring the most recent tech improvements serving to firms deal with laws—June 15, 2023, at 10:00 AM Pacific Time after which on demand.

See how far Microsoft Cloud for Sustainability has come over the previous 12 months.

Quicker time to insights with Venture ESG Lake (preview)  

With rising market and stakeholder stress to stick to new ESG reporting guidelines and finest practices, in addition to rising demand for generative AI-based experiences, organizations around the globe are exploring methods to use and analyze knowledge in new methods. The flexibility to foretell danger and measure and handle sustainability points throughout all the operation and worth chain hinges on the power to sew collectively a fancy set of disconnected knowledge sources and providers and conduct a deep evaluation of sustainability, operational, and monetary knowledge.   

Because of this, many organizations are rethinking their knowledge administration methods and embedding sustainability extra deliberately into their core enterprise fashions and operations. The journey begins with organizing the information property—from gathering, aggregating, standardizing, and analyzing knowledge to tracing knowledge again to the supply to assist audit actions.   

As we speak we’re introducing Venture ESG Lake to assist organizations higher handle and put together their knowledge for holistic evaluation and finally advance their progress towards attaining sustainability objectives.  

The answer provides an expansive ESG knowledge mannequin with greater than 400 tables masking carbon, water, waste, social, governance, biodiversity, and basic enterprise areas. Utilizing it, organizations can construct a complete knowledge property, centralizing and remodeling knowledge from throughout enterprise models and provide chains into an ordinary schema that’s prepared for superior analytics and reporting. Larger visibility into actions throughout the enterprise will assist decision-makers enhance ESG and enterprise efficiency whereas boosting long-term competitiveness.  

Venture ESG Lake empowers organizations to convey collectively ESG knowledge from varied supply methods and standardize it to the ESG knowledge mannequin to construct a centralized ESG knowledge property.  

With this resolution, organizations can: 

  • Deliver calculated emissions knowledge from Microsoft Sustainability Supervisor or different third-party options into their ESG knowledge property, leveraging knowledge integration and transformation frameworks which are supplied inside Venture ESG Lake.  
  • Combine their Microsoft-based emissions associated to their utilization of Microsoft Azure and Microsoft 365 into their ESG knowledge property. The information could be reworked and standardized to the analytical ESG knowledge mannequin utilizing Venture ESG Lake’s transformation framework to arrange for analytics and reporting initiatives. 
  • Additional enrich their knowledge utilizing exterior datasets which are supplied via Venture ESG Lake throughout varied sustainability classes, together with biodiversity, local weather danger, power, and ESG.
  • Leverage standardized ESG knowledge in Venture ESG Lake within the new Microsoft Cloth, an end-to-end, unified analytics platform that allows builders to leverage the ability of generative AI in opposition to their knowledge and helps enterprise customers glean significant insights from their knowledge. Cloth can be utilized to entry, deploy, and compute the options and providers supplied by Venture ESG Lake. 
  • Join aggregated and standardized ESG knowledge in Venture ESG Lake to a set of Energy BI reporting templates aligned to ESG knowledge fashions. These can assist organizations speed up the evaluation and reporting of ESG classes and to visualise relevant metrics in Energy BI. Energy BI reviews and visualizations could be personalized to concentrate on particular metrics and targets for reporting initiatives. 
Screenshot of Project ESG Lake dashboard.
Built-in environmental, social, and governance knowledge from varied supply methods, standardized to construct a centralized ESG knowledge property in Venture ESG Lake.

Enhanced ESG reporting capabilities to enhance regulatory preparedness 

To prepare for laws, prospects want to grasp their compliance posture, observe required actions, and doc proof for upcoming regulatory initiatives. Additionally they have to shore up knowledge governance practices to arrange for audits and reporting. To handle these wants, we’re rolling out focused options and finally will present a spread of prebuilt ESG reporting templates aligned to main ESG regulatory reporting requirements and workflows.  

CSRD template in Microsoft Purview Compliance Supervisor: Beginning in July 2023, prospects can be taught what’s required to be CSRD-ready in keeping with preliminary European Sustainability Reporting Requirements (ESRS). ESRS laws are anticipated to be finalized within the second half of 2023. The template will assist organizations start to gather the information they want for ESRS reporting and can evolve as soon as new requirements are adopted. 

Screenshot of CSRD template in Microsoft Purview Compliance Manager.
CSRD template in Microsoft Purview Compliance Supervisor.

Reporting and objective alignment: Additionally in July 2023, organizations can use new capabilities in Microsoft Sustainability Supervisor to assist gather quantitative emissions, water, and waste knowledge aligned to preliminary ESRS laws and observe progress in opposition to Science Based mostly Targets initiative (SBTi) designations.1 

Complete emissions knowledge administration to seize all the carbon footprint 

To make sure full accounting of their emissions affect, organizations want to gather and handle knowledge for all classes of emissions throughout their operations and provide chains. Our last spherical of Scope 3 emissions calculation fashions in Microsoft Sustainability Supervisor—in preview in June 2023—allows prospects to retailer, calculate, and report all 15 Scope 3 classes. Microsoft Sustainability Supervisor has supported Scopes 1 and a pair of since its basic availability in June of 2022. 

Screenshot of Scope 3 emissions data management in Microsoft Sustainability Manager.
Scope 3 emissions knowledge administration in Microsoft Sustainability Supervisor, masking all 15 Scope 3 emissions classes.

Emissions associated to the processing of offered merchandise—Scope 3 Class 10 (preview): The processing of offered merchandise can have a big environmental affect, notably in industries the place processing typically includes energy-intensive actions like heating, cooling, and refrigeration. With Scope 3 Class 10 protection, organizations can calculate emissions related to this processing and establish areas the place they’ll scale back their environmental affect and work towards extra sustainable practices. These can embrace reducing oblique emissions generated from the processing of intermediate merchandise offered by the reporting firm however processed by third-party producers earlier than use by the tip client. 

Emissions from using offered merchandise—Scope 3 Class 11 (preview): With the calculation of Scope 3 Class 11 direct and oblique emissions related to using offered merchandise, organizations can establish potential climate-related dangers in addition to the aggressive benefits of creating low-carbon merchandise and dealing with suppliers to cut back emissions. 

Emissions from franchise operations—Scope 3 Class 14 (preview): Calculation of Scope 3 Class 14 emissions—together with oblique emissions created by franchise operations—allows companies to establish alternatives to enhance their provide chain sustainability and scale back prices throughout all places. Managing franchise emissions can assist enhance model popularity, buyer loyalty, and regulatory compliance whereas attracting and retaining franchises.  

Emissions related to investments—Scope 3 Class 15 (preview): Monetary establishments primarily report emissions in Scope 3 Class 15, which refers to emissions ensuing from their investments. That is a vital exercise that may be fairly complicated because it includes gathering knowledge from exterior sources and utilizing superior allocation strategies. To facilitate this course of, Microsoft Sustainability Supervisor supplies a dependable methodology that may be instantly adopted or personalized to satisfy the particular wants of economic establishments.   

Different emissions from gas and power—Scope 3 Class 3 (preview): Most organizations will quickly have to account for gas and energy-related emissions of their worth chain—for instance, coming from supplier-related actions in addition to transportation and distribution losses of bought power. With Scope 3 Class 3 protection, prospects achieve the identical easy entry to accounting procedures used for Scope 1 and Scope 2 gas and power classes however with extra concerns for worth chains. Additionally, emissions from this class will likely be aligned to the suitable scope for reporting functions. This contains power losses from transportation, distribution of bought power in Scope 2, and every other utility or gas data not coated by Scopes 1 and a pair of. 

Versatile greenhouse fuel international warming potentials evaluation (preview) 

To generate extra correct calculations and assist enhance total reporting and compliance, organizations can choose a default greenhouse fuel (GHG) international warming potentials (GWP) evaluation report (inclusive of Evaluation Studies 4, 5, and 6) set to make use of throughout all their calculations and nonetheless customise to a special set as wanted inside a calculation profile.

Waste knowledge capabilities present a unified view of waste sustainability knowledge 

Waste knowledge ingestion in Microsoft Sustainability Supervisor (preview): Organizations have numerous waste amount and high quality knowledge from totally different sources, they usually want to have the ability to effectively enter that knowledge and put together it for waste sustainability use instances. They will now hyperlink new and beforehand entered waste knowledge to related waste categorization and disposal reference knowledge that has been entered into Microsoft Sustainability Supervisor. They will additionally account for undigitized knowledge sources, corresponding to utility invoices and e mail or paper-based lab check reviews, utilizing waste knowledge entry types.  

Screenshot of Waste data management in Microsoft Sustainability Manager.
Waste knowledge administration in Microsoft Sustainability Supervisor.

Waste amount knowledge visualization with Microsoft Sustainability Supervisor dashboards (preview): Organizations want detailed, present waste amount knowledge to drive correct insights and reporting. They will now visualize up-to-date historic waste amount knowledge and filter, roll up, and drill down on the information at facility or group ranges, by time, waste kind, and materials granularity.

Screenshot of Waste quantity data visualization in Microsoft Sustainability Manager.
Waste amount knowledge visualization in Microsoft Sustainability Supervisor.

Waste sustainability disclosure utilizing commonplace reviews (preview): Organizations that have to drive company waste sustainability objectives and meet exterior waste reporting necessities can now generate customized and regulatory waste sustainability reviews in Microsoft Sustainability Supervisor to reveal periodic waste amount knowledge.

Screenshot of Waste data disclosure in Microsoft Sustainability Manager.
Waste knowledge disclosure in Microsoft Sustainability Supervisor.

New water knowledge capabilities serving to prospects speed up water sustainability

Water income depth calculation (preview): Organizations want to grasp the effectivity of water utilization based mostly on total income and meet exterior reporting necessities. Utilizing Microsoft Sustainability Supervisor, they’ll calculate and report the full water consumed (in cubic meters) per web income throughout the group. 

Screenshot of Water revenue intensity report in Microsoft Sustainability Manager.
Water income depth report.

Water storage monitoring (preview): The place vital portions of influx or outflow water are saved, organizations can report on whole water saved and adjustments in saved water volumes to attain compliance with exterior reporting necessities. Within the occasion of destructive values of water consumption, they’ll perceive whether or not amenities and organizations are really replenishing water within the ecosystem.  

Screenshot of water storage tracking in Microsoft Sustainability Manager.
Water storage monitoring in Microsoft Sustainability Supervisor.

Water sustainability goal-tracking (preview): Many organizations have complicated water utilization eventualities difficult their skill to make progress on water sustainability objectives. Microsoft Sustainability Supervisor helps them overcome this complexity by creating and monitoring water sustainability objectives from particular person amenities to their whole group.  

Screenshot of water quantity goals in Microsoft Sustainability Manager.
Water amount objectives in Microsoft Sustainability Supervisor.

Knowledge lake export for Microsoft 365 and Azure emissions (preview): By the Microsoft Cloud for Sustainability API (preview) portal, prospects can now export present and historic Azure and Microsoft 365 emissions on to their Azure Knowledge Lake Storage. They will combination emissions associated to their Azure and Microsoft 365 utilization instantly of their Azure tenant to streamline analytics and reporting. This new functionality additionally provides flexibility to attach knowledge to different Microsoft and third-party knowledge administration and enterprise intelligence instruments.  

Speed up your sustainability progress with extra assets 

Get information and updates. With laws rising, we’re shortly innovating round ESG monitoring and reporting. Join to obtain e mail updates. 

Deepen collaboration with the Microsoft Cloud for Sustainability neighborhood portal—coming quickly. Join and develop your information as a part of a vibrant buyer and companion neighborhood. The brand new Microsoft Cloud for Sustainability portal will allow you to share and discover solutions to questions, uncover beneficial assets, submit product suggestions—together with characteristic requests and observe updates—and be part of person teams and boards to speak about your areas of curiosity. 

Screenshot of Microsoft Cloud for Sustainability community portal.
Microsoft Cloud for Sustainability neighborhood portal—coming quickly.

Dive deeper with new Let’s Speak Sustainability Tech Talks—coming in July 2023. Need to know extra about Microsoft business options? Be part of expert-driven, action-oriented month-to-month discussions to satisfy the folks behind the expertise and get high-level ideas with dwell product demos. Every present will finish with a information evaluation, a handful of takeaways, and really helpful actions. Tech Talks will likely be based mostly on actual buyer questions, serving to you pace up your time to worth whereas serving to us refine the expertise so you may have a greater expertise. Keep tuned for particulars. 

Discover companion sustainability options on your business. Discover consultants and options that may allow you to deal with your distinctive ESG knowledge administration wants, out there at present on Microsoft AppSource.   

Speed up your sustainability journey

Drive operational and price efficiencies to assist meet your sustainability objectives with Microsoft Cloud for Sustainability.

Field engineer inspects solar panels on a wind farm using remote assist on a Surface tablet while wearing a reflective safety vest and a hardhat.

1 SBTi is a collaboration between the Carbon Disclosure Venture, the United Nations International Compact, World Assets Institute, and the World Broad Fund for Nature, offering tips and requirements to assist firms set emission discount targets in step with local weather science and Paris Settlement objectives. Be taught extra

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