foreign [Music] compliance with servicenow in this video we'll learn what is csrd why is it important for you in your business what are some of the challenges organizations will face to be compliant and finally how can servicenow help the corporate sustainability reporting directive or csrd is a new mandatory integrated reporting regulation although it's coming out of the European Union it will be applicable to any large companies with operations in the EU over a specific set of thresholds regardless of their headquarter locations as a result this broad reaching applicability will affect approximately 50 000 companies the goal of csrd is to make corporate sustainability reporting similar to financial reporting including from an assurance perspective it's essentially accountability of business toward their sustainability disclosures csrd starts in 2024 when information must be collected and published in a company's management report and have external Assurance on the full sustainability standards non-compliance with csrd will likely result in violations or fines the final structure is not yet confirmed although it is likely going to be comparable to other EU regulatory drivers like gdpr the scope of csrd's disclosure requirements is quite broad across environmental social and governance categories however if we zoom in on any one of these disclosure requirements we see that there's a lot more involved than simple data collection let's look at E1 climate change as an example so reviewing the details of E1 climate change we can see the typical data collection and Reporting around energy consumption and in this case greenhouse gas calculations however we can also see specific requirements around policies related to climate change the actions and resources that a company has underway in relation to this topic and finally the physical and transitional risks so basically the risk assessments and risk evaluations related to this topic csrd requires a lot more than just the typical ESG data metrics and reporting that we see in other standards and Frameworks there are really four key components that are required to be compliant with csrd the data collection the governance around the program and the policies that Define it as well as control objectives and controls tied to those policies the projects and initiatives within your business to achieve your objectives and targets and finally the risk and opportunity management assessing the value of your physical and transitional climate risks switching topics to how servicenow can help the servicenow command center solution is uniquely designed to address these broad challenges it combines the ESG risk and strategic portfolio products to provide a comprehensive unique and seamless solution offering for customers to be fully compliant with csrd let's take a look at the solution for the ESG data and Reporting element servicenow's ESG management solution provides that end-to-end data collection for both qualitative and quantitative data as well as data aggregation Automation and ultimately calculation for things like ghg emissions and we do this across the whole spectrum of environmental social or governance related metrics whether it's things like emissions as we mentioned energy usage waste water Dei metrics Etc and the way that we do that is by providing the metric definitions required for example csrd does get into op-x and capex and we are providing the standard in this case the regulation out of the box so that organizations can track their compliance against csrd to monitor what metrics are in place to manage each individual section switching over to ESG governance and controls let's take an example of a facility management policy this policy has been recently updated to include in this case a climate change control objective we can see in this particular example that we were ensuring that data centers a specific type of Facility have the proper business continuity for Disaster Recovery plans clicking into the control objectives we have all the controls in place around those objectives and the testing that we have as well so a customer could easily disclose their facility management policy and highlight that climate change is baked into this policy as per the csrd requirements number three ESG actions and targets the Strategic portfolio management solution allows customers to evaluate each initiative each project that they could be considering for any ESG action or Target so in this case I could evaluate some of these initiatives from a financial perspective what is the cost from a timeline perspective how long will it take to implement or from an Roi perspective if the goal is emissions reductions what's the expected amount of emissions reduction From Any Given project or initiative finally and perhaps most importantly I can look at this in a Gantt chart Style view so I have very clear visibility as to how and when I'm going to achieve some of these goals and again the cost associated with each so the customer could for csrd purposes disclose the specific actions that are in place and all the resources time and budget that they've been allocated finally risk management risk statements allow customers to ensure that they're identifying assessing and evaluating risks using the same template across the organization this is especially important so we can ensure that we're capturing the right risks and evaluating them the same way in the same manner treatment actions can then be implemented as required for each entity in this particular example I can see this climate change risk that I'm evaluating across all of my data centers and the scoring both inherent and residual scoring that I'm seeing coming out of this risk assessment the overall risk statement which captures each of those risk assessments provides an easy narrative for my csrd reporting to highlight how across the organization this risk is being identified managed and treated so that's how the servicenow ESG Command Center solution helps with csrd compliance to learn more about how we can help you be compliant with csrd please contact us we'd love to help you thank you