- 7
- April
ESG Reporting has become unavoidable for organizations of all sizes, especially since Thailand's Securities and Exchange Commission (SEC) now requires listed companies to disclose ESG data in the 56-1 One Report format. The critical question is: how prepared is your organization? And how can an ERP system help? This article explains what ESG is, what data must be reported, and how ERP systems can manage this data systematically.
What is ESG?
ESG stands for Environment, Social, and Governance — a framework that investors and regulators use to assess whether an organization operates sustainably. Each dimension covers critical areas:
| Dimension | Meaning | Key Issues |
|---|---|---|
| E — Environment | Environmental impact | Greenhouse gas emissions, energy consumption, waste management, water usage, circular economy |
| S — Social | Social responsibility | Workplace safety, training hours, labor rights, diversity, community engagement |
| G — Governance | Corporate governance | Board diversity, business ethics, anti-corruption, internal audit |
Key takeaway: ESG is not just about the environment. It encompasses all three dimensions — Environment, Social, and Governance. Organizations with strong ESG scores gain advantages in accessing capital, securing international trade partners, and building investor confidence.
Why ESG Reporting Matters Now
Three key factors make ESG Reporting an urgent priority:
1. Thai SEC Mandates One Report Disclosure
Since 2024, the Securities and Exchange Commission (SEC) of Thailand requires all listed companies to disclose ESG data in the 56-1 One Report, which consolidates both financial and non-financial information into a single report.
2. Stock Exchange ESG Ratings
The Stock Exchange of Thailand (SET) publishes the annual Thailand Sustainability Investment (THSI) list. Companies on this list attract attention from sustainable investment funds, which globally manage assets worth over USD 35 trillion.
3. International Trade Partners Require ESG Data
European and Japanese buyers increasingly require Thai exporters to report product Carbon Footprints. The EU's CBAM (Carbon Border Adjustment Mechanism) is already in effect. Organizations without ready ESG data risk losing trade opportunities.
ESG Data That Organizations Must Report
The following table summarizes the key data points required for each ESG dimension:
| Dimension | KPI | Unit | Data Source |
|---|---|---|---|
| Environment | GHG Emissions (Scope 1, 2, 3) | Tonnes CO2e | Electricity bills, fuel consumption, logistics data |
| Energy consumption | MWh, GJ | Electricity meters, energy invoices | |
| Water consumption | Cubic meters | Water meters, water bills | |
| Waste volume | Tonnes | Waste disposal records, weigh slips | |
| Social | Lost Time Injury Frequency Rate (LTIFR) | Per million work hours | Incident register, HR system |
| Average training hours per employee | Hours/person/year | Training records, HR system | |
| Gender ratio in management | Percentage | Employee data, HR system | |
| Governance | Board diversity | Count, percentage | Company secretary records |
| Ethics complaints | Number of cases | Whistleblowing system | |
| Internal audit findings | Number of findings | Internal audit reports |
Common Challenges in ESG Reporting
Based on real-world experience working with multiple organizations, the four most common problems are:
- Scattered data — Environmental data sits with facilities, Social data with HR, and Governance data with the company secretary. There is no central repository.
- Excel-based data collection — Leading to copy-paste errors, inconsistent numbers, and no audit trail.
- Missed deadlines — Waiting for data from multiple departments, each sending it late or in different formats.
- No baseline — Without historical data, organizations cannot set targets or perform year-on-year comparisons.
These challenges mirror the same issues found in enterprise risk management — having data but lacking a centralized system leads to slow and error-prone decision-making.
How ERP Helps with ESG Reporting
An ERP system already serves as your organization's Single Source of Truth. Most ESG data either already exists in the ERP or can be captured with minor adjustments:
| ESG Data Required | Relevant ERP Module | How ERP Helps |
|---|---|---|
| Energy/water consumption | Accounts Payable, Inventory | Automatically extract electricity, water, and fuel costs from invoices; convert to MWh, GJ |
| Waste volume | Inventory, Manufacturing | Record scrap/waste from production processes; track waste rates |
| Training hours | HR | Record per-employee training; auto-calculate averages |
| Workplace incidents | HR | Log incidents; auto-calculate LTIFR |
| Employee diversity data | HR | Generate diversity reports instantly from existing master data |
| Supplier procurement | Procurement | Assess suppliers on ESG criteria; track local procurement rates |
| Audit trail / approvals | All modules | Every transaction records who did what, when, and who approved it |
Real-world example: Using ERP for ESG
A Thai state enterprise used its ERP system to extract three years of electricity cost data from the Accounts Payable module, convert it to CO2 emissions using TGO emission factors — all within a single day. Previously, gathering this data from scattered Excel files took over two weeks. The organization also linked HR data to instantly report training hours and gender ratios in management positions.
Saeree ERP and ESG Reporting
Saeree ERP includes modules that support ESG data collection and reporting:
- Accounting Module (AP/AR/GL) — Energy, water, and resource expenditure data with Cost Center breakdowns
- HR Module — Employee data, training records, incident logs, gender ratios, age demographics, position levels
- Procurement Module — Supplier data, ESG supplier assessments, local procurement tracking
- Inventory/Warehouse Module — Waste volumes, scrap data, loss rates
- Workflow & Approval System — Approval processes with complete audit trails supporting Governance requirements
- Report Builder — Create customizable ESG dashboards aligned with GRI or SET standards
Having data in an ERP system enables organizations to build a Data Warehouse for multi-year ESG trend analysis — exactly what investors are looking for.
7-Point Checklist for ESG Reporting Readiness
- Conduct a Materiality Assessment — Identify the ESG topics most relevant to your organization. You don't need to report every single KPI.
- Inventory your existing data — Determine what data already exists in your ERP and what gaps remain.
- Establish a Baseline Year — Choose a base year for year-on-year comparisons. Most organizations use the current year as the starting point.
- Set KPIs and targets — Define measurable targets such as reducing carbon emissions by 10% within 3 years.
- Capture missing data in ERP — Configure your ERP to capture ESG data that is currently missing, such as adding waste volume fields in the manufacturing module.
- Build reports to standard — Select the appropriate framework (GRI, TCFD, SET One Report) and create report templates in the system.
- Review and improve annually — ESG is a continuous process. Review targets and data quality every year.
Similar to budgeting processes, ESG Reporting requires data from multiple departments, and ERP is the tool that centralizes all of it.
ESG Reporting is not a burden — it is an opportunity. Organizations with ready ESG data gain advantages in capital access, international trade negotiations, and investor confidence. An ERP system lets you start from the data you already have, without building everything from scratch.
— Saeree ERP Team
References
- Securities and Exchange Commission, Thailand (SEC)
- Stock Exchange of Thailand — Sustainability
- Global Reporting Initiative (GRI)
- Thailand Greenhouse Gas Management Organization (TGO)
If your organization needs to start ESG Reporting but is unsure where to begin, you can schedule a demo or contact our consulting team to assess your organization's readiness.
