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Data collection and validation for Sustainability at A.P.Møller-Mærsk
Data collection and validation for Sustainability at A.P.Møller-Mærsk
Data collection and validation for Sustainability at A.P.Møller-Mærsk
Data collection and validation for Sustainability at A.P.Møller-Mærsk
Data collection and validation for Sustainability at A.P.Møller-Mærsk
Data collection and validation for Sustainability at A.P.Møller-Mærsk
Data collection and validation for Sustainability at A.P.Møller-Mærsk
Data collection and validation for Sustainability at A.P.Møller-Mærsk
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Data collection and validation for Sustainability at A.P.Møller-Mærsk

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Dr Jane Thostrup-Jagd, Financial Controller of Maersk, describes the controls the global conglomerate uses for the collection and reporting of both financial and non-financial information. Maersk's …

Dr Jane Thostrup-Jagd, Financial Controller of Maersk, describes the controls the global conglomerate uses for the collection and reporting of both financial and non-financial information. Maersk's conrol protocols ensure that the data presented to investors is of the highest quality possible, thus conveying trust in the reported information.

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  • 1. Data collection andvalidation forSustainability atA.P.Møller-Mærsk
  • 2. Agenda•  Presentation of APMM’s control framework•  Presentation of EuroSox annual process•  Benefits of using financial tools and logic•  When do you have an evidence?•  Practical examples of integrated controls•  Watch out – culture clash!
  • 3. Presentation of APMM’s control framework•  APMM is a conglomerate of app. 1,000 companies in 130 countrieswith headquarter in Denmark. The conglomerate covers shipping, oilextraction, terminals, retail, banking etc.•  Group Accounting has since 2010 been in charge of ensuring thedata collection and validation for sustainability - and data quality hasbeen reviewed with “good reliability” remarks ever since.•  Audit Committee has required that the sustainability data is controlled inthe same framework as the financial data; thus Risk & ControlCompliance (RICC – also known as EuroSox) was applied toSustainability in 2011 and onwards•  Since we are a conglomerate, the Business Units have different riskprofiles for wrong reporting•  APMM use a cascade-model with local control-frameworks given bythe Business Units’ nature – and not a centralised control model•  We do though have minimum requirements for control objectivesand ground rules for documentation
  • 4. RICC/EuroSox annual processRisk AssessmentControl ObjectivesControl CatalogueMonitoring & testingRemediationAssuranceSOPsFinancial & Non-financial ReportRICC/EuroSox is based upon 4th., 7th. and 8th. EU directives, where the listedcompanies are to describe their control environment for their financial reporting
  • 5. Benefits of using Financial tools and logic?•  The reporting process is known by the Business Units•  Ability to re-use of the financial reporting package tools, whichincludes:•  APMM Sustainability GAAP (a pendant to our financial APMMGAAP)•  Re-use of financial consolidation system (we use HFM - Excel isNOT a valid consolidation system, as the audit trail is lost) =>•  System is as good as free•  No need for implementation time - and reporting training already exist•  Well established IT audit and access controls•  Ownership and activity consolidation structure is fully replicable =>financial and non-financial data is comparable (remember: Databoundaries have to be financial. The contrast is operational boundaries,which creates incomparable and incontrollable datasets)•  There are full visibility between financial and non-financial data =>logical controls to secure validity and completeness on sustainabilitydata can be established•  Explanation sheets•  Quality Assurance testing tools on BU and Group level•  RICC/EuroSox control overview with Audit Committee attention
  • 6. When do you have an evidence? Local guidance•  We re-use the demands for evidences given by ISA 500; strongevidences are: External, controlled effectively, direct (not an inference),in writing, and original (or in a shape where the audit trail is maintained)•  APMM has defined 2 data types, which indicates the demandedevidences, that the entities need to have in place; Documentable andProbable data. Carbon disclosure is classified as Documentable data•  Documentable data must, given our definitions, be evidenced by either:•  Documentation from 3rd party (invoices, delivery notes etc) are the best•  Readings are internal evidences, meaning weak evidences, and thereforehave to be validated further by compensating controls:•  Automatic readings from measurement-devices are only valid, if thesystem reading device is tested at least annually•  Manual readings are only valid if:•  Done by two independent persons – and reviewed subsequently•  Alternatively, likelihood calculations should be applied comparing forinstance consumption/combustion with production to ensure validityand completeness of measurements
  • 7. Practical examples of logical integrated controlson Group, using both financial and non-financials•  Group should control for validity and especially for completeness perentity before final consolidation:•  Financially, FTEs are included in staff cost note. If there are FTEs in a legalentity, then:•  there at least have to be electricity, water, and waste. No company hirepeople to stare at the wall•  there could be heating of some sort – but that depends on thegeography.•  If the Group gather cost data for some or all CO2-sources (diesel, electricity,bunker etc.), then compare these £ amounts with the quantities ofconsumption per entity per activity.•  Electricity and district heating have to be collected per country to get theCO2-calc right. Look at where the legal entity has its main address: if thecountry-choice for electricity and/or district heating is unexpectedlydifferent (e.g. Sweden vs South Africa), then demand an explanation•  If the entity owns/leases machinery and/or transportation-equipment,then there have to some sort of CO2-source use (combustions or electricity).Look at the financial notes and compare with the non-financial report – andcompare the consumptions with the assets in use•  Entity/BU will have to explain, if reporting deviates when performing these logicaltests.
  • 8. •  To achieve good quality non-financialreporting, it often demands betterco-work between financial andnon-financial employees. It can bedemanding, due to culture clash•  In all fairness, non-financialpeople are not very familiar withconcepts like: data discipline,evidences, controls, monitoring,SOPs etc.•  Non-financial people are mainlyoriented around “the good story”,which the financial employees donot understand.•  But if they co-work, the companycan be able to claim something,where the investor potentially willbelieve it to be true, since it isbased on sound data!Thank you for your attentionContact: Jane.thostrup.jagd@maersk.com

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