Søren Ilsøe, director at Deloitte Consulting, provides feedback on private and public ESG initiatives. The EU is preparing regulations for digital product passports and mandatory ESG data collection across many industries. Currently, companies collect social data more readily than environmental data, but regulations will require robust environmental reporting. Many organizations are setting ESG data standards currently without coordination, so companies should choose data solutions wisely.

1. Søren Ilsøe, director – Deloitte Consulting – April 2023
Private and public initiatives: feedback from an adviser
Future ESG infrastructure

2. 2
Impact that Matters
Deloitte Audit & Assurance
Risk Advisory Consulting
Tax & Legal
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Financials
Public
Transport
Energy &
Resources
Manufacturing
Technology,
Media & Telecom
Real Estate
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Health Care
Consumer
Business
415,000 Global
Søren Ilsøe
Director, AI & Data
soilsoee@deloitte.dk
AI & data solutions, EMEA
Sustainability and ESG data lead, Denmark
Currently working for the European Commission and
Danish Business Authority recommending standards
for ESG distribution and Digital Product Passports
6,600 Nordic
© 2023 Deloitte Statsautoriseret Revisionspartnerselskab. For more information, contact Deloitte Global

3. 3
DPP
Digital
Product
Passport
Product Static Data
• Identifiers
• Manufacturer
• Category
• Type
• Weight
• Material
• Durability
• Recyclability
• Emission
• Ecolabels
• Hazardous substances
VISION OF THE FUTURE DIGITAL PRODUCT PASSPORT & ESG DATA
EU is preparing regulations for the Digital Product Passport and ESG data collection for a variety of products and services
Product Specific Data
• Material composition
• Model
• Color
• Specific calculations
Product Documentation
• Authenticity
• Certifications
• Ecolabels
• Manuals
• Tests
• Drawings
• Pictures
Product Supply Chain
• Transportation and distribution
• Reuse and recycle value chain
• Return and repair
• Custody and taxation
• Product owners
• Business partners, auditors
DATA TRANSPARENCY ON ENVIRONMENTAL, SOCIETAL AND GOVERNANCE FACTORS
RESOURCES GOODS TECH TRANSPORT
SERVICES
© 2023 Deloitte Statsautoriseret Revisionspartnerselskab. For more information, contact Deloitte Global

4. 4
HIGH FOCUS ON ESG DATA COLLECTION,
SOCIAL DATA SEEMS MORE ADAPT THAN ENVIRONMENTAL DATA
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Other ESG data
Supplier board composition
Toxic emmissions
CO2 footprint
Water and pesticide consumption
Company culture
Control of suppliers
Waste management
Chemical use
Business ethics with suppliers
Working conditions
Raw material
Work environment
Compliance with human rights
What ESG data is currently collected by Danish enterprises?*
Question: What ESG data do you currently collect on your products/textiles?
Based on online-survey performed by Deloitte to Danish textile enterprises, January 2023
Already in the regulation pipeline
CSRD
Extended Producer Responsibility for
Packaging
Digital Product Passport for Batteries
- and more products to come
Increased documentation for Market
Surveillance
… and much more
© 2023 Deloitte Statsautoriseret Revisionspartnerselskab. For more information, contact Deloitte Global

5. 5
DATA SOURCES AND TECHNOLOGY SEEMS DIFFICULT,
START THINKING LONG TERM: CONSOLIDATE AND DIGITIZE THE PROCESS
Question: What ESG data do you currently collect on your products?
Based on online-survey performed by Deloitte, January 2023
0% 10% 20% 30% 40% 50% 60% 70% 80%
Excel
Sharepoint
ERP
PIM
MDM/DW
Do not collect
What IT system do you use to collect ESG data?
0% 10% 20% 30% 40% 50% 60%
Other
Systems integration
Cloud drive
Don't know
Email
We don't send or receive data
What IT system do you use to distribute ESG data?
Question: In which IT system(s) do you typically send or receive ESG data across your supply chain?
Based on online-survey performed by Deloitte, January 2023
© 2023 Deloitte Statsautoriseret Revisionspartnerselskab. For more information, contact Deloitte Global

6. 6
… and many more
DATA AND TECH VENDORS
MANY ORGANIZATIONS CURRENTLY SETTING REQUIREMENTS,
NO STANDARDS DEFINED: CHOOSE YOUR DATA SOLUTION WISELY
Data Availability: where can we get the data from?
Data Management: can a system support us in orchestrating all this?
Data Transparency: how do we keep in control of the information?
INFORMATION AND SYSTEMS
SOLUTION PROVIDERS
© 2023 Deloitte Statsautoriseret Revisionspartnerselskab. For more information, contact Deloitte Global

7. 7
CONSOLIDATE YOUR ESG DATA: CLEANSE, MANAGE AND DISTRIBUTE
YOU WILL ENCOUNTER MANY PARTNERS TO SHARE WITH
ESG
Data
Mgmt
External
data
feeds
Business
systems
HR
systems
IoT
PIM/PLC
DPP
ERP
DW
MDM
Central storage for all
ESG related data
Compare, cleanse,
distribute
Map to standards
Products
Transactions
Customers
Partners
Capture from
sources
Reporting
Upcoming EU/DK
digital infrastructure?
B2C
B2B
B2G
Data
receivers
This is usually for large/medium-sized enterprises
Advise for smaller enterprises:
Excel/database for central data storage
Cloud-based solution for data management
Ask ERP vendor how they intend to implement
Outsource and find full-service partner
© 2023 Deloitte Statsautoriseret Revisionspartnerselskab. For more information, contact Deloitte Global

8. 8
Set your roadmap for regulations and requirements: internal/external, who will require what?
Map the requirements to the capabilities in your as-is landscape: what needs to be in place?
Identify data sources and to-be solution: find good data feeds and partnerships to support you
Run implementation project, do the critical first: secure ownership, processes, standards
Keep monitoring regulation pipeline and standards coming: expand your solution and data feeds
© 2023 Deloitte Statsautoriseret Revisionspartnerselskab. For more information, contact Deloitte Global

9. 9
THANK YOU – QUESTIONS?
© 2023 Deloitte Statsautoriseret Revisionspartnerselskab. For more information, contact Deloitte Global

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