{"id":29143,"date":"2021-06-25T17:49:00","date_gmt":"2021-06-25T15:49:00","guid":{"rendered":"https:\/\/www.laragon.es\/best-practices-in-the-implementation-of-a-corporate-non-financial-reporting-system\/"},"modified":"2022-07-22T08:31:21","modified_gmt":"2022-07-22T06:31:21","slug":"best-practices-in-the-implementation-of-a-corporate-non-financial-reporting-system","status":"publish","type":"post","link":"https:\/\/www.laragon.es\/en\/best-practices-in-the-implementation-of-a-corporate-non-financial-reporting-system\/","title":{"rendered":"Best practices in the implementation of a corporate Non-Financial Reporting system"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"29143\" class=\"elementor elementor-29143 elementor-24938\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8c41943 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8c41943\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-da5209f\" data-id=\"da5209f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-70c2dc4 elementor-widget elementor-widget-heading\" data-id=\"70c2dc4\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">Best practices in the implementation of a corporate Non-Financial Reporting system<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1fc5e5e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1fc5e5e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b811833\" data-id=\"b811833\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ed091a9 elementor-widget elementor-widget-text-editor\" data-id=\"ed091a9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"color: #000000;\">By Salvador Lara, Laragon&#8217;s Commercial Director<\/span><\/p><p><span style=\"color: #000000;\">Although at first glance it may seem that the <span style=\"text-decoration: underline;\">\n  <a href=\"https:\/\/www.laragon.es\/en\/climate-change\/\" target=\"_blank\" rel=\"noopener\">Non-Financial Reporting<\/a>\n<\/span> is a mere collection of data to comply with regulations or legislation, the reality is that this type of report goes much further because it provides a detailed overview of the company&#8217;s overall activity.<\/span><\/p><p><span style=\"color: #000000;\"><strong>The digitization of reporting is an ally for business managers in charge of ensuring data quality,  <\/strong>that face a changing organizational and regulatory environment, with multiple data sources, which in turn inform disparate systems, with the added complexity of consolidating data coming from files in all kinds of formats that arrive through various sources: email, SharePoint, among others.<\/span><\/p><h2><span style=\"color: #000000;\"><strong>FACTORS THAT ADD COMPLEXITY<\/strong><\/span><\/h2><h3><span style=\"color: #000000;\"><strong>Internationalization:<\/strong><\/span><\/h3><p><span style=\"color: #000000;\">In multinational companies, the indicators are expressed in <strong>different measurement units, with multiple data completion criteria and in different currencies<\/strong>.<\/span><\/p><h3><span style=\"color: #000000;\"><strong>Documentation:<\/strong><\/span><\/h3><p><span style=\"color: #000000;\">Incorporating evidence such as documents, photographs, is essential to support inaccuracies or deviations that require verification or validation.<\/span><\/p><h3><span style=\"color: #000000;\"><strong>Data traceability:<\/strong><\/span><\/h3><p><span style=\"color: #000000;\">It is necessary that the information reported has gone through a validation process from its origin, this allows to guarantee its quality and traceability for audits of the data or so that it can be published<\/span>.<\/p><p><span style=\"color: #000000;\">To address these factors, the ideal is to have a robust technological solution that  The company is able to <strong>automate these processes, to <\/strong>consolidate information and be able to perform unit conversions and calculate indicators under controls and standards, to notify alerts when a piece of information needs to be accompanied by justification or evidence, and to monitor the progress of reporting compliance.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4de80a4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4de80a4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ed134ef\" data-id=\"ed134ef\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-35ad872 elementor-widget elementor-widget-image\" data-id=\"35ad872\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"414\" src=\"https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/antes-y-despues-1-768x414.png\" class=\"attachment-medium_large size-medium_large wp-image-24923\" alt=\"\" srcset=\"https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/antes-y-despues-1-768x414.png 768w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/antes-y-despues-1-300x162.png 300w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/antes-y-despues-1-18x10.png 18w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/antes-y-despues-1.png 882w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bd830ae elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bd830ae\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1bf41c3\" data-id=\"1bf41c3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7d0eb9b elementor-widget elementor-widget-text-editor\" data-id=\"7d0eb9b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h2><span style=\"color: #000000;\"><strong>MATERIALITY AND COMPLIANCE CRITERIA<\/strong><\/span><\/h2><p><span style=\"color: #000000;\">Although in Spain the State Law on Non-Financial Information sets the basis for this report, the reality is that there are multiple reference standards, which implies an additional effort to keep our NFR updated in accordance with them, and this must be connected with the materiality of our business, allowing us to obtain and provide relevant information for our Stakeholders.<\/span><\/p><p><span style=\"color: #000000;\">Changes in standards, regulations and legislation, together with changes within the organizations themselves, represent a challenge for those responsible for establishing the RNF criteria. Those responsible for ensuring this information must respond to a multitude of requirements without compromising the quality of the data or the controls in place.<\/span><\/p><p><span style=\"color: #000000;\">Automation is a key factor particularly for organizations that have a lot of information coming from other internal systems. It is now very easy to use a solution to extract the data automatically. Manual data manipulation generates inefficiencies, errors, cost overruns and risks.<\/span><\/p><p><span style=\"color: #000000;\"> <\/span><\/p><h2><span style=\"color: #000000;\"><strong>REALISTIC BENEFITS OF DIGITIZATION<\/strong><\/span><\/h2><p><span style=\"color: #000000;\">Managing expectations well is a challenge and a key success factor when implementing an RNF digitization project. To achieve this, a good practice is to explain that  <strong>the system will not solve all of the organization&#8217;s needs from day one. In this sense, communication is key,  <\/strong>The project&#8217;s objectives, priorities and phases, as well as the project&#8217;s constraints, must be clearly explained.<\/span><\/p><p><span style=\"color: #000000;\"><strong>The most important thing is to focus on transmitting the value generated by the system, not only for the company, but for each user and organizational level.  <\/strong>A corporate reporting system generates much more value and productivity if end users and intermediate levels can use their own information for performance management and monitoring, for example, through follow-up dashboards that allow them to make decisions and propose improvement actions based on their results.<\/span><\/p><p><span style=\"color: #000000;\"><strong> <\/strong><\/span><\/p><h2><span style=\"color: #000000;\"><strong>CENTRALIZED MANAGEMENT<\/strong><\/span><\/h2><p><span style=\"color: #000000;\">For requirements gathering, it is necessary at the beginning of the implementation to be able to identify key users and involve them in the design, construction, testing and even training processes. This compilation is done through the project leadership team centrally, but involving these key people in all areas of the organization.<\/span><\/p><p><span style=\"color: #000000;\">Relying on these people for the internal dissemination of all project-related messages will help ensure that the system is well adopted.<\/span><\/p><p><strong style=\"color: #000000;\"> <\/strong><\/p><h2><span style=\"color: #000000;\"><strong>SIMPLIFY AND PRIORITIZE YOUR PROCESSES BY RISK LEVEL<\/strong><\/span><\/h2><p><span style=\"color: #000000;\">The recommendation is to start with something simple. To quote Leonardo Da Vinci &#8220;Simplicity in maximum sophistication&#8221;, if things are too complex at the beginning, you run the risk of losing the attention and commitment of project participants and end users.<\/span><\/p><p><span style=\"color: #000000;\">If the budget or time is limited, it is advisable to carry out an initial implementation that covers the most urgent requirements in the short term, that mitigates the greatest risks and, of course, that allows us to follow the medium- to long-term roadmap we have defined to build the complete management model.<\/span><\/p><p><span style=\"color: #000000;\">Here the recommendation is to be able to count on expert partners that can help both in the definition and deployment of this Roadmap, as well as in the implementation of technological solutions that allow to cover the scalability required by the project. It is not only the reporting of information.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4a292b1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4a292b1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-10db469\" data-id=\"10db469\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4cee3f6 elementor-widget elementor-widget-image\" data-id=\"4cee3f6\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"563\" height=\"319\" src=\"https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/da-vinci-1.png\" class=\"attachment-medium_large size-medium_large wp-image-24943\" alt=\"\" srcset=\"https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/da-vinci-1.png 563w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/da-vinci-1-300x170.png 300w, https:\/\/www.laragon.es\/wp-content\/uploads\/2021\/06\/da-vinci-1-18x10.png 18w\" sizes=\"(max-width: 563px) 100vw, 563px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-70682fd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"70682fd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-db7fb36\" data-id=\"db7fb36\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-08a70f4 elementor-widget elementor-widget-text-editor\" data-id=\"08a70f4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3><span style=\"color: #000000;\"><strong>BEYOND NON-FINANCIAL REPORTING<\/strong><\/span><\/h3><p><span style=\"color: #000000;\">The challenge is not just to comply with the law but to have the ability to make better decisions from tracking the metrics and information required by both investors and IDGs, how the data is used in ESG ratings and how it ranks relative to competitors, so a system must go much further and support all the key dimensions.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7e45b2d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7e45b2d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-5fa5ecc\" data-id=\"5fa5ecc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9776435 elementor-widget elementor-widget-image\" data-id=\"9776435\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.laragon.es\/#equipo\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"776\" src=\"https:\/\/www.laragon.es\/wp-content\/uploads\/2020\/10\/salvador3-1.png\" class=\"attachment-large size-large wp-image-19614\" alt=\"\" srcset=\"https:\/\/www.laragon.es\/wp-content\/uploads\/2020\/10\/salvador3-1.png 800w, https:\/\/www.laragon.es\/wp-content\/uploads\/2020\/10\/salvador3-1-300x291.png 300w, https:\/\/www.laragon.es\/wp-content\/uploads\/2020\/10\/salvador3-1-768x745.png 768w, https:\/\/www.laragon.es\/wp-content\/uploads\/2020\/10\/salvador3-1-12x12.png 12w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\"><\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-66b7a88\" data-id=\"66b7a88\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e06fc7b elementor-widget elementor-widget-text-editor\" data-id=\"e06fc7b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p class=\"MsoNormal\"><span style=\"color: #000000;\"><a href=\"http:\/\/Salvador%20Lara,%20es%20Director%20Comercial%20en%20Laragon,%20Licenciado%20en%20CC.%20Econ%C3%B3micas,%20Salvador%20acumula%20una%20experiencia%20de%20m%C3%A1s%20de%2014%20a%C3%B1os%20implantando%20soluciones%20y%20asesorando%20a%20corporaciones%20globales%20en%20sus%20estrategias%20de%20digitalizaci%C3%B3n%20e%20implementaci%C3%B3n%20de%20sistemas%20de%20QEHS,%20GRC%20y%20Sostenibilidad.\" data-wplink-url-error=\"true\" target=\"_blank\"><b><span style=\"font-family: Biome, sans-serif;\">Salvador Lara,  <\/span><\/b><\/a><span style=\"font-family: Biome, sans-serif;\">is <b>Commercial Director at Laragon, <\/b>with a degree in Business Administration. Salvador has more than 14 years of experience implementing solutions and advising global corporations in their digitalization strategies and implementation of QEHS, GRC and Sustainability systems.<\/span><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Keys to success when implementing a Non-Financial Reporting digitization project<\/p>\n","protected":false},"author":7,"featured_media":28834,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[167],"class_list":["post-29143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-reportingnotfinancial-einfd-esg"],"_links":{"self":[{"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/posts\/29143"}],"collection":[{"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/comments?post=29143"}],"version-history":[{"count":0,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/posts\/29143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/media\/28834"}],"wp:attachment":[{"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/media?parent=29143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/categories?post=29143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.laragon.es\/en\/wp-json\/wp\/v2\/tags?post=29143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}