ESG in your financial regulatory documents

taxonomie verte

Using XBRL for Interconnecting financial and sustainability (ESG) taxonomies

Structured digitalization of data to facilitate interconnectivity and usability of information throughout regulated disclosed publications, is of utmost importance in order enhance transparency and comparability of data, in line with the European union’s ambitions. Financial taxonomy has been used, over the recent years, to interconnect financial information of several regulated documents of the same nature, thanks to XBRL.

A white paper released by EFRAG* on the 14th of January of this year, is calling on the general public to give feedback, before the 15th of February, on the project of enabling the same XBRL technology to connect financial and sustainability (ESG) taxonomies. This integrated approach ambitions to create links between different indicators and give a clearer and more comprehensive reading to all stakeholders. Disclosed publications could then be analyzed not only from a financial profitability standpoint but also, from that of the sustainability lens. If such a technological feat is successful, navigation through these complex and bulky documents will undoubtedly be facilitated.

The XBRL certified French software provider, Pomelo-Paradigm, has designed and developed a software called Pomdoc Pro to assist issuers and auditors in creating that interconnectivity throughout their regulated disclosed financial documents. Current users of this software include several multinational companies as well as issuers who work on behalf of their clients, who are suject to the NFRD regulation. Pomdoc has integrated the European financial taxonomy and allows users to interconnect the digital data throughout their financial documents. This automated process has resulted in the massive diminution of errors due to reduced manual data entry as well as the promotion of collaborative work, as several departments can work simultaneously on the same document. To date, over 8948 documents have been edited using Pomdoc Pro, software which is entirely ESEF compatible.

Pomelo-Paradigm is at the forefront of the XBRL financial taxonomy interconnectivity and has the technological stability to integrate the ESG taxonomy when it becomes available.

A free demonstration animated by our sales department can be scheduled upon demand!

Cecilia ANICETTE, Senior CSR and Sustainability Consultant

* European Financial Reporting Advisory Group

Green Taxonomy and NFRD

La Taxonomie verte dans la DPEF

New KPI disclosures in 2022 and 2023

Non-financial companies are subject to new reporting obligations within the NFRD scope because of the EU green taxonomy regulations. From the calculation of the imposed key performance indicators to the preparation of the sustainability report, below are a few guidelines to assist you.

New KPIs for sustainability reporting

Details of the new quantitative and qualitative Key Performance Indicators (KPIs) to be disclosed within the NFRD framework are indicated in the delegated acts of the Taxonomy Regulation on climate change mitigation and adaptation, published in July 2021. Since then, the companies concerned have been busy contacting their different business units to collect and centralize the required information needed to calculate these indicators.

As of January 1st, 2022, non-financial companies are expected to identify and classify all their activities and indicate whether they are taxonomy-eligible or not, with regards to two of the six environmental objectives: climate change mitigation and adaptation.  Following this initial step, the three KPIs: % of turnover (CA), % of capital expenditure (CapEx) and/or % of operating expenditure (OpEx) have to be assigned to each activity.

Article 8 of the Taxonomy Regulation specifies that it is also necessary to describe the nature of the activities, making a clear distinction between those that are "transitional" or "enabling", without omitting to specify which objectives they contribute to.

Disclosure of Green Taxonomy KPIs in 2022

Despite this apparent simplification, a methodical and rigorous approach is necessary in order to avoid any error or accusation of greenwashing. This is particularly the case for activities that contribute towards more than one environmental objective; in this context, companies are expected to disclose this information and should be particularly vigilant, not to count the turnover generated for this activity more than once.

Towards complete disclosure in 2023

As of January 2023, the publication of KPIs will be mandatory for all overarching objectives. This implies calculating not only the percentage of taxonomy-eligible activities, but also, that of taxonomy-aligned activities for all the six objectives (climate change mitigation and adaptation, water and marine resources protection, circular economy, waste recycling, pollution reduction and ecosystem protection).

In anticipation of this second disclosure milestone, the delegated acts concerning the second set of screening criteria concerning the objectives 3 to 6, is expected to be published in the upcoming weeks. In order to successfully apply this calculation methodology, several essential advisory tools are at your disposal:

> The delegated acts relating to the climate objectives;

> Annex 1 qualifying criteria & Annex 2 technical screening criteria;

> Article 8 of the EU regulation 2020/852;

> the European compass.

Communicate efficiently with your stakeholders

As an expert in the creation of legally-binding and financial documents, and thanks to its network of partners, Pomelo-Paradigm can assist you with your sustainability reporting and document formatting within the NFRD scope. Contact us for a free sustainability evaluation.

Contact: Cecilia ANICETTE, Senior Consultant, rse@pomelo-paradigm.com

Domus 5.0

DOMUS Version 5 has just landed!
Discover an exciting array of new options to make your editing your documents even easier!

    • Add comments to your documents

 

  • You can now include comments in your documents and open a discussion with other users – this can then be closed with a click once the question has been dealt with. The comments and responses are integrated in your PDF export and are compatible with the comments function in Acrobat Reader®.
    • Manage formats with 3 or 4 columns

 

  • You can now create formats comprising 3 or 4 columns, as well as formalize more complex templates and highlight sections or chapters containing essential information. .
    • Define access rights more easily

 

  • Access rights have been completely rethought around the notion of groups. It’s now even easier to quickly define who can read or edit each section in your document.
    • Visualize your fonts in your browser preview

 

  • Your company’s fonts will now appear directly in your browser (WOFF technology)

 

Go to DOMUS project

How exactly is your data protected?

Protection is guaranteed by the company hosting your personal data. The level of protection is governed by the legal framework of the country, as well as the specific contract or Terms & Conditions. When transferring data, it is therefore important to check the level of protection provided by the company in question.

TRANSFERRING DATA TO A FRENCH COMPANY

Data transferred to French companies is carefully monitored and protected, which is very reassuring for users. French data hosting companies must conform to the French 1978 Data Processing, Files and Freedoms Act, European Directive 95/46/CE and Convention 108 established by the Council of Europe. In France, this legal framework is managed and enforced by the CNIL (Commission nationale de l’informatique et des libertés). In Europe, more and more countries are setting up similar independent data protection agencies. But, what about companies in non-European countries?

TRANSFERRING DATA FROM EUROPE TO AMERICAN COMPANIES

The situation is far less reassuring in relation to the recently signed UE-US Privacy Shield, which applies to data transferred from the European Economic Area to the United States. Negotiated in 2015-2016, it is based on specific commitments from the US government and a decision by the European Commission[1]. On 12 July 2016, the commission accepted the terms, which, in theory, comply with level of protection applied within the European Union. Rather than an international treaty, it is a series of measures regulating data transferred from a EU member state to the United States, vital since October 2015 when the Safe Harbor was deemed invalid by the European Court of Justice[2][3].

A CONTROVERSIAL MEASURE

From the very beginning, the agreement has received significant criticism. Max Schrems, the Austrian lawyer who destroyed Safe Harbor, put forwards his arguments against the Privacy Shield during the Cloud Independence Day, just before it was ratified[4]. He declared that, “the Privacy Shield poses both commercial and public policy problems.” He criticized the commercial use of personal data and highlighted that European companies still don’t have the same rights as their American counterparts. Furthermore, he cast doubt on the impartiality of the designated mediator, who is responsible to the US Foreign Office. Max Schrems emphasized that the problem of mass surveillance remained unchanged given that the text keeps the 6 exceptions provided for in Safe Harbor: “detecting and fighting activities by powerful foreign powers; anti-terrorism; fighting nuclear armament; cybersecurity; detecting and fighting threats to the United States and armed allies; and fighting trans-national criminal threats,” which is incompatible with to the case-law of the European Court of Justice.

French companies are subject to diverse personal data regulations, CNIL control and monitoring by the Financial Markets Authority, as well as European personal data rules (GDPR), which from 2018 will impose serious sanctions for infringements to this legislation, as does the Privacy Shield.

Through its president Isabelle Falque-Pierrotin, the Article 29 Data Protection Working Party declared that the Privacy Shield represented a “major step forward” in personal data protection at a press conference in Belgium on 13 April 2016. However, the G29 also expressed some reservations[5] and asked for clarification on certain points as, “it is difficult to understand all the documents and appendices. There isn’t just one document.” Falque-Pierrotin highlighted that the mass data surveillance carried out by US intelligence agencies, which undermined Safe Harbor, was still possible with the Privacy Shield. The European Court of Justice will give its verdict on the matter by the end of the year.

The G29 feel that the agreement does not provide enough guarantees in relation to the rights, powers and recourses of the ombudsperson. Despite representing major data protection advances[6], the agreement still raises numerous doubts, criticisms and points of clarification before users will be able to fully trust certified companies.

As a French company, Pomelo-Paradigm respects and protects your data/.

PomDoc – Enabling several people to work on a document at the same time

Discover the free version of the latest innovative technology from Pomelo-Paradigm.

PomDoc is a platform that allows several people to work simultaneously on a document. No more waiting, no more different versions, no more errors. Just lots of time and stress saved.

1. Quiz :

  • Have you ever received accurate meeting minutes within a reasonable timeframe?
  • Have you ever pulled your hair out trying to put together different versions of a document containing numerous modifications from different people?
  • Have you ever helped someone write an email or report, while fighting the overwhelming desire to grab the keyboard?
  • Have you ever lost the modifications you made to a document after it was synchronized?

If you answered yes to any of these questions, PomDoc could be the ideal solution for you.

2. How does it work?

  1. Create a new document directly in the system or upload an existing text document.
  2. Open the document and share it easily via email.
  3. Each contributor can freely visualize or modify the content.
  4. Export the document in Word or PDF format.

3. Who is it for?

The platform is designed to allow several people to work simultaneously on a document via any kind of device. It is an effective way to avoid sending lots of email, losing information and spending time merging versions, while maximizing the efforts made by each contributor e.g. style, corrections, validations and comments. PomDoc therefore targets anyone working on a shared document as part of a team or group regardless of geography and time differences.

If you often work on numerous, complex documents, watch this space, our professional version, Editeam, will soon be launched.

4. How could you use PomDoc?

  • To prepare the agenda before a meeting
  • To write the minutes as you go during a meeting, so everyone can add content and check information
  • Write a report, thesis or specifications without waiting for others or having to merge versions
  • Share a document with your different sites or offices across the world

 

 

Access PomDoc
View this project in the Lab

Pomelo-Paradigm 2016 winner: scientipôle initiative

Pomelo-Paradigm was delighted to be among the 2016 winners at the Scientipôle Initiative Awards.
This award is a big boost for the upcoming launch of our new Editeam solution for professionals. As well as providing financial support, Scientipôle Initiative gives us access to a vast network of Growth and Innovation experts and partners.
A big thank you to Julie, Laurent and Tristan who has accompanied us in this adventure.

Cooperation and collaboration in software

1. A little about semantics

The Collins Dictionary defines the terms as follows:
COLLABORATE: (intransitive) verb, often followed by “on”, “with”, etc. To work with another or others on a joint project.
From the low Latin collabōrāre, from Latin cum = together + labōrāre = to work.
COOPERATE: (intransitive) verb, to work or act together. To be of assistance or be willing to assist.
From low Latin cooperārī = to work with, combine, from Latin operārī = to work
From a purely semantic point of view, the two concepts largely overlap: they both represent a methodology for collaborative work (many people interacting to achieve a common goal). In spite of this, they are significantly different:
– As far as collaboration is concerned, all participants work together to achieve the goal. The resources and responsibilities are pooled together.
– As far as cooperation is concerned, the work to achieve the goal is split between the participants, each being solely responsible for completing the part they have been assigned. The resources and responsibilities are therefore divided.
Thus, depending on the adopted method of work, the work tools will be significantly different. On the one hand, cooperative processes require organizational tools (planning, monitoring tasks, creation of complex workflow, etc.). On the other hand, collaborative processes call for tools to monitor the work that is being done by other participants (monitoring revisions, annotations, validations, etc.)

2. Web 2.0 and the dawn of participatory software

With the rapid development of the so-called 2.0 web, applications have taken a collaborative or at least a participatory turn. It has become so easy for anyone to contribute to joint projects (online encyclopedia, blog, etc.), but these changes have been slow to penetrate the world of business.
Nevertheless, since the early 2000s, the development of SAAS solutions has enabled all participants to connect to centralized databases, and has hence facilitated the sharing and exchange of information that is the basis of collaborative work.
Moreover, certain types of software have been designed to manage more and more complex workflows, thereby meeting the growing needs for cooperation.

3. Collaborative work is first and foremost communicating with others

In the early 2000s, offices were stripped of their walls and the open-space became the norm. The aim was to bring teams closer together to help them communicate more easily and to increase their productivity. The idea was to limit the endless email exchanges and the tedious time-consuming task of reconciling file versions. Unfortunately, this need has not really been met by applications, which have not been able to integrate tools to work “together” properly. Even though some do allow you to work “at the same time”, you still have to resort to the phone (or a videoconference) for collaborative work to be carried through successfully.

4. Future collaborative arrangements

With globalization, collaborative exchanges have encountered new difficulties mainly owing to the time difference.
Indeed, it has become very difficult to work at precisely the same time and you often find yourself looking at work done by another person with no details or explanations (unless you try to fully document everything, which would be tedious).
Without being able to trace back at any time over the intellectual process that has produced a result, participants find themselves in a cooperative rather than a collaborative system.
The challenge for future applications will be to allow each participant to become fully involved in projects by being placed at the center of the problem rather than on the periphery.
To conclude, computer software often mixes up the concept of cooperation with the concept of collaboration, therefore overlooking one or the other.
It is therefore essential — when attempting to express one’s needs — to differentiate between the tools associated with each of these two perspectives in order to meet every objective.

Pre-launch of the pomelo-paradigm.com website

It’s almost the big day for Pomelo-Paradigm, our site is complete, operational and ready to be launched online soon. There are still some small details to settle, and the site will then be operational. A big “thank you” to all the team who managed the conception, preparation and implementation for this day, and without whom it would not have been possible…
See you soon on the Internet!!!