ESG Data Collection
Table of Contents
- 1 Metrics and Units
- 2 Conversion Factors
- 3 Chart of Account Definition
- 4 Chart of Position Definition
- 5 Facts
- 6 Other Applications
- 7 Conversion of ESG Values
- 8 Import ESG Data
This article describes how IDL Konsis is to set up to be ready for manual entry of Environment, Social, and Governance (ESG) data. ESG data includes non-financial numerical and textual information. The numerical information can be recorded in freely definable metrics and units.
Numerical ESG data is now provided via the Konsis Datamart (OLAP views).
Licensing of the ESG Component
As of the current release, the functions of the ESG topic area can only be used with a valid license file that contains the ESG feature.
1 Metrics and Units
It is recommended to start with the application Metrics and Units (abbreviation: MTRUNT). You can define both metrics (i.e. length, square etc.) and units (i.e. meter, kilometer, mile) here. A unit is always assigned to a metric.
Figure: Application Metrics and Units
You can export metrics and units in the standard file format as well as in user-defined file formats.
2 Conversion Factors
You can store the respective conversion factors between the units within a metric in the new application conversion factors (abbreviation: CNVFCT). To convert non-financial numeric values within a metric from one unit to another, you can add conversion factors as follows:
Figure: Conversion Factors
You can export conversion factors in the standard file format as well as in user-defined file formats.
3 Chart of Account Definition
Within the Chart of Accounts Definition application (abbreviation: COADFN), IDL Konsis adds two new balance sheet / profit & loss codes:
- Metric (M)
- Narrative information (N)
Figure: Application Chart of Account Definition
If an account is an ESG account, that is, if you want to report non-financial numeric values on an account, it is mandatory to assign an already defined metric to this account.
If the balance sheet / profit & loss code M (metric) is assigned to an account, the sixth page of the Change account wizard (ESG) becomes active and allows you to select the desired metric for this account.
Figure: Assign Metric to ESG Account
Every "metric" account must be assigned to a metric, that was already defined. For a "narrative" account this isn’t available, as we don’t expect any numeric information on a narrative account.
4 Chart of Position Definition
Within the chart of position definition (abbreviation: POSDFN), IDL Konsis adds two new balance sheet / profit & loss codes:
- Metric (M)
- Narrative information (N)
ESG items can be defined in the same way as ESG accounts as part of the chart of position definition. In addition to the familiar balance sheet / profit & loss codes, the characteristics M (for metrics) and N (for narrative) items are therefore also available for the items.
You can assign M and N accounts to an M position and N accounts to an N position. You cannot assign a Metric account to a Narrative position, because you may lose the Metric information. The following table describes the allocation of ESG accounts to ESG positions:
| Position | Account | Allocation Allowed |
|---|---|---|
| Metric | Metric | Yes |
| Metric | Narrative | Yes |
| Narrative | Narrative | Yes |
| Narrative | Metric | No |
5 Facts
The Facts application (abbreviation: FCT) has been extended for ESG data. There is a checkbox for ESG data (with ESG-Data) on the third assistant page. If you intend to work with ESG data on this fact, please switch this option on accordingly. Firstly, this results in the fifth wizard page (ESG) becoming active, on which you can select the desired unit for each metric in group units and parallel units. Secondly, this is expected to have an impact on the so-called fact carryforward.
If the option "with ESG-Data" is not set on a "lower" fact and you transfer again to a "higher" fact on which the option "with ESG-Data" is set, the ESG data on the "higher" fact will not be deleted. If, on the other hand, the "with ESG-Data" option is activated on both facts, the ESG data on the "higher" fact is deleted and replaced by the data from the "lower" fact when you transfer again.
Figure: Change fact wizard - Page 3
Figure: Change fact wizard - Page 5
6 Other Applications
Within the report definition, "ESG" positions can be used in the same way as the other positions.
The Companies application (abbreviation: CODT) has been extended for ESG data. The assignments of units of all metrics to a company for its local values can be imported with a new import application. Analogue to the local currency of a company (for accounts with balance sheet / profit & loss code = 1 to 4 and 6 to 9), it is possible to specify the desired local unit for each metric when entering ESG data (balance sheet / profit & loss code = M).
Two alternative applications are currently available for the manual entry of numerical ESG data: the account balances application (abbreviation: ACBAL) and the account balances form entry application (abbreviation: F-ACBAL). In both applications, the headings have been adapted and the word currency has been removed from the heading, as it would not have been appropriate for ESG data. For example, the heading Local currency was replaced by Local value, the heading Group currency value was replaced by Group value and the heading Parallel currency value was replaced by Parallel value.
In the form entry for account balances, the units (including currency codes) are now displayed in a separate column.
For narrative accounts (with the balance sheet/P&L code "N"), the entry of values in the single record application and the form entry for account balances is prevented.
In the application for displaying report results (REPERG), an optional column for displaying the units can now be shown. This is shown in the same way as the optional key column via an option in the selection area and can also be preset in the report header.
The "Metrics" attribute has been added to the account logging display (ACCLOG).
The details of group and parallel units per metric in the facts and the conversion factors for units are now considered in the SKDEPLOY application.
In the overview application for transactions, the units (currencies or ESG units) for local, group, and parallel values are now displayed in separate columns. Numerical ESG data stored as transactions are now converted from local values to group and parallel values. Numerical ESG data can now also be entered in the form entry application for transactions.
7 Conversion of ESG Values
Numerical ESG data is stored in accounts with the balance sheet/P&L code "M". The metric used (length, volume, ...) is assigned to the account. The local ESG values available in the account balances with the corresponding units defined for each company can now be converted into group and parallel values with their units defined for each fact. For this purpose, the new context menu item "Conversion of ESG values" has been added in the company financial statement monitor (CFSMNR). This menu item only processes accounts with the balance sheet/P&L code "M". Conversely, this data is ignored by the currency conversion.
Figure: Menu Item Conversion of ESG values
8 Import ESG Data
You can import metrics, units, and conversion factors in the standard file format as well as in user-defined file formats using these import programs: Import metrics, Import units, and Import conversion factors for units.
Figure: Import Applications for Metrics, Units, and Conversion Factors