{"id":116543,"date":"2024-06-05T08:00:00","date_gmt":"2024-06-05T15:00:00","guid":{"rendered":"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/?p=116543"},"modified":"2024-06-05T08:06:54","modified_gmt":"2024-06-05T15:06:54","slug":"leverage-ai-to-simplify-csrd-reporting","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/sustainability\/2024\/06\/05\/leverage-ai-to-simplify-csrd-reporting\/","title":{"rendered":"Leverage AI to simplify CSRD reporting\u00a0\u00a0"},"content":{"rendered":"\n

Organizations around the world are navigating complex reporting frameworks to meet sustainability goals. For companies working in\u2014or with\u2014the European Union, the Corporate Sustainability Reporting Directive (CSRD) is a sweeping set of requirements to provide non-financial public disclosures on environmental, social, and governance (ESG) topics.\u202fCSRD rules began rolling out in 2024, requiring over 11,000 companies to disclose non-financial information. An increase of an additional 50,000 companies that are incorporated, listed, or doing business in the European Union is estimated. As companies are working to comply, allocating the time and resources is a challenge. Microsoft is developing solutions to address the diverse reporting needs of our customers and investing in our partners to create a variety of options that organizations can engage.\u00a0<\/p>\n\n\n\n

To address this growing need, Microsoft Cloud for Sustainability data solutions in Microsoft Fabric<\/a> (preview) can help organizations take sustainability data in any format, organize, and normalize the data for sustainability regulatory reporting. This quantitative data reporting approach is complemented by a joint solution from Accenture and Avanade that leverages generative AI to provide qualitative insights. This enables organizations to manage workflows associated with multiple sustainability reporting frameworks globally, including CSRD, Global Report Initiative (GRI), and the International Sustainability Standards Board (ISSB). Organizations can optimize both quantitative data from Microsoft Cloud for Sustainability<\/a> solutions and qualitative data with Accenture and Avanade\u2019s generative AI-powered solution.\u00a0<\/p>\n\n\n\n

The solution integrates seamlessly with Microsoft Sustainability Manager<\/a>, offering a comprehensive platform for managing sustainability key performance indicators (KPIs) across different frameworks. The solution\u2019s collaborative features, generative AI-enhanced insights, and streamlined data integration can help organizations simplify compliance-related processes. Meanwhile, the improved richness of its sustainability reporting enables organizations to take more effective actions to achieve their ESG targets.\u202f\u00a0<\/p>\n\n\n

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Sustainability data solutions in Fabric<\/h2>\n\n\t\t\t\t\t
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Unique capabilities that provide prebuilt and preconfigured Fabric resources<\/p>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t

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Navigate the complexities of reporting frameworks<\/h2>\n\n\n\n

All ESG reporting frameworks carry their own complexities. However, the CSRD has been top of mind in 2024 for organizations in and outside of the European Union as they begin to gather, analyze, and report the required data. This is no simple task\u2014the CSRD encompasses 12 standards and 82 reporting requirements, which amounts to approximately 500 KPIs and over 10,000 underlying data points. In addition to managing this large array of ESG data, companies face other significant challenges associated with CSRD compliance and data management including reporting on the entire value chain versus only on their own organization. The evolving nature of sustainability criteria and metrics further complicates the reporting process.\u00a0<\/p>\n\n\n\n

Navigating the intricacies of a multitude of reporting frameworks and intricate regulations necessitates extensive data gathering and assimilation. The process of ESG reporting often engages various departments and resources within an organization, introducing its own set of risks and costs. The more manual a process, the more opportunities there are for errors to occur, and the complexities of each reporting framework require time, diligence, and accuracy. A proficient solution can help simplify the process and effectively aid in the generation of accurate reports with fewer resources required. <\/p>\n\n\n\n

Accenture and Avanade\u2019s generative AI-powered solution allows users to select from different reporting frameworks and adapts to the specific requirements of the chosen framework, displaying relevant categories and reporting structures. Users can access the breadth and depth of their data and translate it into the necessary reporting frameworks. This flexibility is crucial for organizations that are subject to multiple reporting obligations or need to adhere to international standards beyond local mandates.\u00a0<\/p>\n\n\n

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Streamlining data management using Microsoft Azure OpenAI Service <\/h2>\n\n\n\n

Accenture and Avanade\u2019s solution addresses the dual challenges of qualitative and quantitative data in sustainability reporting, utilizing Azure OpenAI<\/a> for enhancing its reporting capabilities, especially for qualitative data input. Using Azure OpenAI to create an AI assistant, Accenture and Avanade\u2019s solution offers a unified platform for sustainability reporting, simplifying the process of compiling CSRD reports, making it easier for users to interact with data and generate reports quickly.\u00a0\u00a0<\/p>\n\n\n\n