Effectively Plan and Report
on ESG Initiatives
I N N OVATI O N G U I D E
Environmental, social, and governance (ESG) issues have been climbing 
up the list of corporate priorities in recent years, but the COVID-19 
pandemic has catapulted ESG to the top. In a survey from GlobalData, 
67 percent of 1,500 executives surveyed said that COVID-19 has been 
a catalyst for increased focus on ESG issues. Looking forward, this 
momentum will continue with more than half (57 percent) stating that 
ESG would have a high impact on their business.

The pressure to act on ESG issues has increased from all corners, including consumers, shareholders, 
investors, and regulators. For the general public, global climate change has become a top priority, 
and people want to see businesses held accountable for their environmental performance.  Investors 
are shying away from fossil fuels and other nonrenewable sources of energy, looking for more green 
investment opportunities. And employees care about sustainability, social responsibility, and diversity 
and inclusion and want to work for companies that share those values. In short,  a company’s 
reputation often depends on meeting ESG expectations.
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Organisations that disregard ESG do so at their own peril. Potential risks include:
The risks of ignoring ESG issues
Higher costs of capital, as poor reporting 
and planning can make it increasingly 
expensive to borrow money
Loss of reputation, as poor ESG results 
can be perceived as a sign of bad 
management 
Loss of investors, as investments funds 
increasingly look to ESG-aligned funds and 
company strategies 
Pricing impacts, as the cost of higher 
capital and higher insurance are passed on 
to buyers
Lack of buyer confidence, especially 
among the increasingly influential 
Gen Z market
Talent shortages, as the best employees 
seek out employers that align to their 
personal values
Compliance violations, as governments 
and jurisdictions introduce new 
regulations or update existing ones
Even corporate leaders themselves face risks, such as compensation penalties or dismissal,
if they ignore shareholder complaints on ESG issues. 
But while the risk of not addressing ESG is considerable, so is the payoff for doing it right. In a 
recent survey by McKinsey & Company, 29 percent of respondents said they expect to build new 
businesses with an environmental or sustainability focus. 
To track this value, and to demonstrate that ESG is important to your company, you need to 
set goals and measure your progress toward them. This is why ESG planning and reporting are 
becoming increasingly important to organisations around the world.
New-business building in 2022:
Driving growth in volatile times, McKinsey, November 2022
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Reporting on ESG initiatives is no easy task; the data can encompass everything from the gender 
pay gap to the carbon footprint of your supply chain. Every part of your organisation will generate 
ESG data. Supply chain, HR, IT, ERP, and other operational systems provide key data at different 
granularity and different standards, as you can see below.  (Figure 1) 
ENVIRONMENTAL
- Carbon emissions
- Water intensive operations
- Energy used in facilities
- Product sustainability
- Earnings sensitivity
- Toxic waste
SOCIAL
- Employee wellness initiatives
- Digital upskilling
- Median hourly gender pay gap
- Employee retention
- Gender and racial/ethnic representation
- Supplier labor risks
GOVERNANCE
- Number of female and minority directors
- Board oversight of climate issues
- Executive compensation
To plan effectively and report accurately, you need to collect, convert, standardise, and aggregate 
data for a complete, consistent picture of your ESG programs. Best practices for ESG planning and 
reporting include: 
Figure 1: ESG reporting covers multiple areas, including (but not limited to) those listed at right.
Best practices for ESG planning and reporting
Understand internal and external 
stakeholder expectations to focus on the 
right issues and priorities
Set ESG Goals and develop strategic, 
collaborative, predictive, and structured 
plans to meet and monitor these
Gathering data and metrics from 
across the organisation
Converting that data to a consistent 
framework so that you can accurately 
compare KPIs
Consolidating and aggregating KPIs across 
the organisation
Analyzing the results to gain insights into 
ESG metrics and impact on the business
Reporting internally to management and 
externally to stakeholders
Supporting multiple reporting frameworks 
For example, the Global Reporting Initiative 
(GRI) is gaining prevalence in the European 
Union, but other frameworks are being 
developed elsewhere
SUSTAINABILITY
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Just looking at the list of best practices for gathering ESG data and creating reports from that data 
is enough to leave business leaders feeling overwhelmed. Reporting of any kind can be demanding, 
but ESG comes with a host of additional challenges for the following reasons:
How do you ensure the integrity of your data? 
How can you be confident that you’re complying
with the latest standards? 
How do you plan, track, and communicate your 
sustainability agenda to ensure that you can meet
future commitments?
It’s evolving
ESG reporting is currently not 
mandatory, but it will be in the not-
too-distant future.
It’s complex
It covers a huge amount of 
information that is continually 
changing.
It’s not cheap
ESG audits will encompass huge 
amounts of data and are linked to 
audit fees; there’s also the cost of 
completing the reporting itself.
It’s the future
A big part of ESG is the forward-
looking aspect. How will your 
organisation get to your 2030/2050 
zero-carbon commitments? How can 
you plan, monitor, and manage this?
It’s far reaching
ESG data covers multiple areas within 
and outside the organisation.
Why is ESG reporting so difficult? 
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To get ESG reporting right, it’s also
important to ask the following questions

Oracle has built a solution for ESG reporting within Oracle Cloud Enterprise Performance 
Management (EPM). It provides a robust platform for analysis and insights, helping managers to 
truly understand their ESG practices and plans and review and analyse the results. Oracle Cloud EPM 
combines dashboards, charts, spreadsheets, and narrative into a single solution so you can produce 
comprehensive reports that not only show your KPIs, but also provide commentary to help your 
stakeholders understand your targets, blockers, and progress.
But ESG isn’t only about reporting. The extensive planning capabilities in Oracle Cloud EPM help 
you plan for a sustainable future across your company—from workforce compensation and 
diversity to renewable energy investments and carbon emission reduction—along with the financial 
implications of each plan. You can compare scenarios side-by-side and decide on the best course 
of action. You can then roll out these plans to your entire organisation, with meaningful targets and 
KPIs, so every department can work toward achieving their particular ESG goals. 
Create an organisation-wide sustainability plan 
Meet multiple ESG reporting requirements (GRI, 
SASB, etc.)
Manage reporting across all ESG stakeholders
Collaborate across the organisation
Consistently and automatically consolidate data 
from all sources, including ERP, HR, supply chain, 
and other business systems
Build in accountability with secure process flows 
and approvals 
How Oracle can help
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Oracle EPM helps you

It’s complete. 
It’s not just reporting ESG metrics. It covers 
the entire process, including data collection, 
translation and verification, and auditing and 
approval, providing narrative around policies, plans, 
outcomes, principal risks, and key performance 
indicators (KPIs). 
It’s connected. 
You can seamlessly connect across ERP and 
operational systems, bringing in any other data 
sources required for sustainability reporting. 
It’s intelligent. 
Built-in machine learning and advanced analytics 
help you surface any anomalies or issues to drive 
better ESG outcomes. 
It’s proven and trusted. 
Oracle Cloud EPM consistently ranks high in analyst 
reports and is the recognised industry leader, with 
thousands of customers running their reporting 
processes in the cloud. 
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Oracle Cloud EPM has all the capabilities
to help you meet your ESG reporting needs

Getting started
Organisations worldwide are eager to demonstrate their ESG commitments 
and establish their credibility with stakeholders. Oracle offers you a 
comprehensive solution that helps you plan, manage, and report on your 
ESG practices. To learn more about Oracle’s offerings for ESG Reporting, 
visit our site, or contact us.
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