Salesforce has introduced a new tool, the SASB Report Builder for Net Zero Cloud, that will enable organizations to automate sustainability-related disclosures.
The move comes just after the International Sustainability Standards Board issued its new standards, IFRS 1 and IFRS 2, related to sustainability disclosures by companies. More than 870 companies from the S&P Global 1200 Index already use the SASB Standards in external communications to investors. The SASB Standards identify sustainability-related issues most relevant to investor decision-making.
The new tool from Salesforce arrives after other organizations have promoted new climate-related disclosures, such as the European Union’s Corporate Sustainability Reporting Directive and the proposed U.S. Securities and Exchange Commission climate rule, which would require registrants to include certain climate-related disclosures including climate-related risks – in their registration statements and periodic reports.
This ongoing focus on climate impact has left companies under more pressure to ensure they understand their own environmental, social, and governance (ESG) data. One 2022 survey from EY revealed “60% of respondents indicated their ESG information is found across a patchwork of software applications,” and 55% of respondents use spreadsheets for their ESG data. More than half of respondents also said they spend “substantial time and effort” addressing ESG data collection, aggregation, and disclosure.
According to Salesforce, the lack of clear global reporting standards may be a pain point for companies attempting to comply with new disclosure expectations.
“Expanding Net Zero Cloud with the SASB Report Builder is a significant next step toward helping organizations automate and streamline their ESG reporting process,” Ari Alexander, vice president and general manager of Salesforce Net Zero Cloud, said in a statement. “Moving forward, we see tremendous potential in the power of generative AI to drive further ESG reporting efficiencies and to add value for our customers—helping them save time and costs while improving the state of the world.”
The SASB Report Builder can generate ESG reports across 14 industries in four sectors – consumer goods, financials, services, and technology and communications. Salesforce already has a tool that enables companies to manage ESG data in real-time and generate reports, called Automate ESG Reporting. The SASB Report Builder builds on that already-existing tool.
