ESG Operating Model

ESG operating model

Do you need a new ESG reporting software? This is one of the questions that you can find an answer to by means of Basico's ESG operating model. It helps you divide the reporting task into processes, competences, systems, guidelines (governance), management and culture. On the basis of the model, we can establish the building blocks needed to handle ESG reporting in an operational and structured way.

An ESG operating model is a strategic approach to integrating Environmental, Social and Governance (ESG) factors into an organisation's business strategy and operation. An ESG operating model focuses on improving an organisation's ESG performance and strengthening its long-term sustainability and competitiveness.

Typically, an ESG operating model involves a number of different processes, including identification of ESG risks and possibilities, the establishment of ESG goals and measurements, the development of an ESG strategy and integration of ESG principles into business planning and operation.

An effective ESG operating model is an integral part of an organisation's overall strategy and governance structure, ensuring that the ESG principles and practice are integrated into the operation and business practice of the entire organisation. It may also help the organisation meet regulatory requirements, improve its reputation, and create long-term value for its stakeholders.

We use an approach taking its point of departure in the existing, financial operating model and processes and, subsequently, extends it as regards ESG reporting. We involve practical experience gained from ESG reporting in the industry so as to ensure operational and tested solutions.

The approach is based on five core area which, together, form the framework for a functional model with underlying ESG reporting processes and the operation hereof.

The five core areas that, together, facilitate an effective process are:


  • Ownership (who does what)
  • Training and education
  • Capacity, timing, and bottlenecks
  • Backup and adoption
  • Support and knowledge. 


  • Applications (ERP, CRM, BI, CPM, consolidation, etc.)
  • Data model and master data (client/product/legal master data, etc.)
  • System integration (API, connectivity, RPA, etc.)
  • Governance (security, controls, roles, ’segregation of duties’, etc.)
  • ‘IT maturity’ (scalability, IT skills, IT support, etc.). 

Policies and procedures 

  • ESG accounting manual
  • Work instructions
  • Guidelines
  • Training material
  • Ownership model (governance)
  • Controls
  • Quality
  • Risks. 

Management and culture 

  • Leadership and responsibility
  • Culture and understanding
  • Bonus programs and goal. 

Organisation and geography

  • Centralised vs decentralised ownership and setup
  • Reference
  • Responsibility and mandate.

The approach is used methodically, meaning that initially we will make a 'gap assessment' relative to the desired ESG operating model and reporting as an overview of the changes to the existing setup that it is necessary to make. Subsequently, we divide the desired changes into specific work processes. In collaboration with the customer, we will agree to which extent there is a need for Basico to solve underlying activities in full or part.

ESG reporting

ESG Reporting Services

In ESG Reporting Services, we can help you with 'double materiality assessment', as well as the design, establishment, and embeddedness of the entire ESG reporting process. We have the operational experience that ensures the practical implementation and solid governance and that can help you through the continuous reporting and 'limited assurance' auditing process.


If you have an interim capacity need in your ESG reporting team, we can also offer an experienced consultant who can help you solve the job, thereby ensuring that you observe the timetable.

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ESG Roadmap
ESG roadmap

ESG roadmap

We can help you transform your ESG ambition or mandatory reporting requirements into a tangible and practical roadmap, where we go through four phases by means of our Change Model: 1) Identification of requirements and needs 2) Design and development 3) Implementation 4) Embeddedness and alignment.

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ESG Double Materiality Assessment
Double materiality assessment

Double materiality assessment

Are you about to begin your CSRS implementation and to prepare your ’double materiality assessment’? We have a practical approach and follow a standard procedure when going through all ESRS subjects and sub-subjects. Thus, you will get a specific list of material KPIs as well as documentation of any de-selection of immaterial KPIs.

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Morten Virenfeldt Nielsen
Morten Virenfeldt Nielsen, Partner
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