Base your Sustainability Report on Artificial Intelligence

Nowadays, issues related to sustainability and corporate transparency are more than a trend: they are a growing demand. Organizations, investors and consumers are increasingly aware of the importance of environmental, social and governance (ESG) responsibility. One of the biggest challenges for companies is to ensure that they are complying with sustainability regulations, such as the European Union's CSRD (Corporate Sustainability Reporting Directive). In this context, Nextbitt has emerged as the ideal basis for centralizing, automating and guaranteeing the accuracy of the data needed to complete sustainability reports, helping companies to comply with the CSRD's requirements.

Why are sustainability reports crucial?

Sustainability reports are not just technical documents; they are strategic tools that help companies:

1. Demonstrating Commitment and Leadership: Transparency in sustainable practices strengthens reputation and trust with customers, partners and investors.

2. Comply with Regulatory Requirements: Many jurisdictions require detailed reports to demonstrate compliance with sustainability standards.

3. Attracting investment: Funds and investors are increasingly focused on supporting companies with strong ESG performance.

4. Guide Strategic Decisions: Access to reliable data makes it possible to identify opportunities for improvement and implement changes that reduce costs and negative impacts.

Although fundamental, sustainability reports face significant challenges, such as collecting accurate data, adapting to international standards and continuously monitoring environmental and social impacts.

The Main Challenges in Creating Sustainability Reports

Many organizations face obstacles that make the creation of these reports a time-consuming and often inefficient process:

• Fragmented data: Relevant information may be scattered across different systems or departments, making it difficult to consolidate and analyze.

• Dynamic regulations: Legal requirements vary by sector and region, and are constantly evolving, making continuous updating essential.

• Time-consuming processes: Manual data collection is prone to errors, increases team effort and reduces operational efficiency.

• Difficulty in Demonstrating Impacts: Without clear traceability, it can be difficult to link ESG indicators to specific processes and decisions.

How to Solve These Challenges

Nextbitt is designed to tackle these obstacles, providing companies with an advanced and efficient platform that transforms the way ESG data is managed.

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1. Centralization and Consolidation of Data

Nextbitt integrates information from various sources - internal systems, IoT sensors and external reports - into a single digital repository. This centralization eliminates redundancies and ensures that all data is up-to-date and consistent.

In addition, the data is presented in an intuitive and accessible way, allowing users to quickly visualize the most relevant metrics.

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2. ESG Process Automation

Automation is one of Nextbitt's greatest assets. With features such as automated data collection and the generation of reports in line with international standards (GRI, CDP, among others), the platform significantly reduces the time and effort needed to produce ESG reports, allowing the necessary requirements to be added so that they can respond directly to companies' needs.

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3. Continuous Monitoring and Smart Alerts

Nextbitt allows you to monitor environmental, social and operational indicators in real time, including:

• Energy and water consumption;

• Emissions of carbon and other greenhouse gases (GHG);

• Waste production and management.

Whenever an indicator exceeds the predefined limits, the platform issues alerts so that teams can act immediately to avoid significant deviations.

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4. Transparency and Traceability

Each metric can be associated with specific processes, assets or locations, guaranteeing total traceability. This feature not only facilitates audits, but also increases transparency with stakeholders.

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5. Integration of Artificial Intelligence

The Artificial Intelligence (AI) integrated into Nextbitt is one of its most distinctive features. AI enables:

• Predictive analysis: Anticipate consumption or impacts based on historical patterns.

• Detecting Inefficiencies: Identifying areas of energy or operational waste and proposing specific solutions.

• Automated Compliance: Continuously compare data with regulatory requirements and issue alerts in the event of non-compliance.

Essential Data for Completing the Sustainability Report

Recent legislative and regulatory changes ensure that Sustainability Reports follow the same frameworks. The CSRD, the EU Taxonomy or the GRI itself guarantee the disclosure of detailed, rigorous and auditable information.

Some of the most frequently requested data include:

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1. Environmental data

• GHG emissions: Companies must report their direct emissions (Scope 1), indirect emissions (Scope 2) and other emissions along the value chain (Scope 3).

• Use of natural resources: How water, energy and raw materials are used, and how these resources are managed to reduce environmental impact.

• Waste management and pollution: The amount of waste generated, recycled or sent to landfill, and the associated impacts on air, soil and water pollution.

• Biodiversity: The way in which the company's operations impact ecosystems and areas sensitive to biodiversity.

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2. Social Data

• Diversity and inclusion: Percentages of women, minorities or other under-represented groups in the company, especially in leadership positions.

• Health and safety: Data on safety at work, including accident rates and measures taken to protect employees.

• Community impact: Information on social impact projects, volunteer initiatives and support for local communities.

• Training and development: Number of hours of training offered to employees and the areas of competence developed.

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3. Governance data

• Corporate structure: Composition of the board of directors, including independence and diversity.

• Anti-corruption and compliance practices: Policies to combat corruption, fraud and protect sensitive data.

• Risk management: How ESG risks are identified, assessed and mitigated throughout business operations.

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4. Value chain data

• Supplier management and supply chain: How the company ensures that suppliers also comply with ESG and sustainability standards.

• Emissions and environmental impact in the supply chain: How emissions and impacts are tracked throughout the value chain.

What is CSRD and Why is it Important?

The CSRD is a European Union directive that obliges companies to report in greater detail on their sustainability practices, in line with the growing demand for transparency and environmental and social responsibility. The new regulation, which replaces the Non-Financial Reporting Directive (NFRD), expands the number of companies obliged to present detailed reports on their ESG performance, and makes sustainability criteria more rigorous and standardized.

The CSRD requires companies to provide detailed information on the impacts, risks and opportunities around sustainability, ensuring that the data is auditable, verifiable and aligned with recognized international standards. This includes, for example, data on greenhouse gas (GHG) emissions, governance practices, sustainable business models and much more.

How Nextbitt Facilitates CSRD Compliance

Nextbitt is the ideal platform to help companies comply with the CSRD by centralizing, automating and verifying all the data needed to fill out sustainability reports. The platform offers a solid and accessible database, allowing companies to:

1. Centralize ESG Data: Collect environmental, social and governance data from different departments and sources. This ensures that all the information needed for the report is centralized and ready to be used efficiently.

2. Automate Collection and Reporting: Nextbitt facilitates the automated collection of data required by the CSRD, generating standardized reports in line with regulatory requirements.

3. Validate Data Quality: The platform allows you to monitor and ensure that the data is correct and auditable, a critical requirement to ensure compliance with the CSRD.

4. Track and Manage ESG Risks: Nextbitt helps identify and manage ESG risks, such as emissions in the supply chain, the use of natural resources or the social impacts of operations.

5. Adapt to Regulatory Changes: As CSRD requirements evolve, Nextbitt 's platform is continually updated, allowing companies to easily adapt to new rules and regulations.

Benefits of CSRD Compliance

Complying with the requirements of the CSRD is not only a legal responsibility, but also brings several benefits to companies:

• Easier Access to Sustainable Investments: Companies that demonstrate good ESG practices and transparent reporting are better able to attract investors interested in supporting sustainable businesses.

• Strengthening Reputation: By ensuring that their sustainability is reported in a clear and auditable way, companies strengthen the trust of their customers, suppliers and other stakeholders.

• Competitive advantage: Companies with a proactive approach to sustainability are better prepared to face changes in the market and in regulations, as well as benefiting from greater operational resilience.

• Operational Efficiency: Continuous monitoring of sustainable practices and data helps to identify areas of inefficiency and optimize processes, reducing costs and increasing long-term sustainability.

The CSRD represents a milestone in the way companies must report on their sustainability practices, and Nextbitt has emerged as the ideal solution to ensure that companies are collecting, organizing and reporting the necessary data in an automated way and in compliance with the directive's requirements. With Nextbitt, companies can transform the way they deal with sustainability, guaranteeing transparency, trust and, at the same time, operational efficiency.

With Nextbitt's platform, the journey towards CSRD compliance becomes easier, more effective and more aligned with the company's strategic sustainability objectives.

Talk to us.

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