Thomson Reuters will launch a new product integration with SAP that is designed to make ESG reporting easier for global enterprises. This was an integration of Thomson Reuters’ ONESOURCE Statutory Reporting solution with the Sustainability Control Tower provided by SAP, which also included enterprise-wide ESG data preparation, compliance, and submission on one platform, especially due to changing regulations worldwide.
This comes at a time when companies go under strict ESG legislation, lately in the EU and the US. In January 2025, companies will be exposed to the CSRD reporting standards of the European Union, among many others by regulators such as the U.S. Securities and Exchange Commission and the International Sustainability Standards Board.
Addressing the Expanding Complexity of ESG Reporting
As the sustainability reporting regulatory landscape continues to evolve and become more complex, companies are expected to be ahead of emerging regulations. In their effort to overcome these challenges, Thomson Reuters and SAP collaborate on a complete, user-friendly solution that allows easier compliance and reporting processes.
It enables the integration of different strong capabilities offered by the SAP Sustainability Control Tower in managing ESG data with reporting capabilities offered by Thomson Reuters ONESOURCE Statutory Reporting. The solution, all together, allows businesses to seamlessly compile, prepare, and file their ESG data in compliance with local, regional, and global standards.
Ray Grove, Head of Corporate Tax and Trade at Thomson Reuters, said: “We are very glad to collaborate with SAP to reduce complexity and burden on emerging regulations compliance. Together, we are committed to guiding businesses through the shifting regulatory landscape and achieving their goals for sustainability.”
Emerging ESG Standards and Global Compliance
The increasing demand for transparent and all-inclusive ESG reporting has resulted in the development of rigorous regulations across the world. For instance, the CSRD of the EU would extend the responsibility for reporting on sustainability metrics in respect of environmental, social, and governance impacts to a wider range of companies, including non-EU-based multinational corporations operating within the region. This represents an increase over the already introduced NFRD within the region for a smaller set of companies.
Besides the EU, companies will also need to work toward new standards from other regulatory bodies, such as the US SEC, which has proposed rules related to climate-related disclosures, and the ISSB, which is working toward the development of a single global baseline regarding sustainability reporting.
Grove added, “Through this integration with SAP, we’re making sure that no matter where our customers operate in the world, they’re able to adhere to those emerging standards. We put the mechanism in place for businesses to handle their ESG reporting efficiently and help them stay well ahead of new regulations coming online.”
Simplified Last-Mile Reporting for Global Enterprises
But the most salient aspect of this integration could be how it places much emphasis on what is called “last-mile” reporting, or the final leg of the reporting cycle of a business when it prepares and files its ESG data with regulators or other stakeholders. Last-mile reporting tends to be the most challenging portion of ESG compliance, since making sure this data is correct, complete, and submitted in the right formats falls into this area.
This capability was crucial to Gunther Rothermel, Chief Product Officer at SAP and co-General Manager for Sustainability, “Combining the SAP Sustainability Control Tower with Thomson Reuters ONESOURCE Statutory Reporting will offer our customers last-mile reporting capabilities based on a solid data foundation.” He added, this will make it easier for companies to smoothen the process and lighten the operational load while keeping pace with the latest regulatory standards.
The collaboration is all about making sure the running of businesses, concerning compliance, requires less time and resources by putting ESG data management and reporting on one platform for their sustainability strategy and operation to go unhindered, independent of all administrative complications in reporting.
Building on a Strong Partnership
This latest integration in the series continues the extensive, successful collaboration between Thomson Reuters and SAP. Previously, these companies worked on projects such as launching ONESOURCE Sales & Use Tax Compliance integration with SAP Document and Reporting Compliance, and certification of ONESOURCE solutions as SAP Endorsed Apps.
These partnerships have helped businesses simplify and automate their compliance processes, and the new ESG-focused integration aims to do likewise for sustainability reporting. The ever-evolving nature of global regulations on ESG means this positions Thomson Reuters and SAP well in helping businesses meet these emerging ESG requirements more efficiently and effectively.
A Scalable Solution for the Future of ESG Reporting
And with EU’s CSRD coming into place in 2025, among a myriad of others coming to different regions worldwide, action needs to be taken now by businesses to stand ready in meeting these new requirements. Bringing together ONESOURCE Statutory Reporting with SAP Sustainability Control Tower offers a scalable platform that handles challenges like this.
Solutions such as this will be crucial in a constantly changing regulatory landscape where businesses are increasingly accountable for their ESG performance and ensure that companies remain compliant while progressing their sustainability agenda.
Where transparency, accountability, and sustainability are becoming key issues of interest for investors, regulators, and consumers alike, the partnership of Thomson Reuters and SAP marks one great stride forward in ESG compliance and reporting. This empowers each business to overcome the complex and changing ESG regulatory environment and work toward a more sustainable future.
Conclusion
The coming together of Thomson Reuters and SAP makes their relationship seamless and integrated in the offering for ESG reporting on global standards such as the EU’s CSRD, the U.S. SEC, and the ISSB. It will simplify last-mile reporting and offer scalable solutions for global enterprises, thus opening ways for more efficient and effective compliance with ESG and enabling companies to pay attention to their sustainability goals.