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Posted 2nd August 2024
The 2024 Dynamics 365 Business Central Release Wave 1 introduced a groundbreaking sustainability management feature that empowers organisations, putting them in control to monitor and manage their environmental impact by tracking greenhouse gas (GHG) emissions quickly and accurately.
It’s a development that marks a significant step forward in the integration of sustainability into everyday business operations. This new feature not only reflects the growing corporate commitment to environmental responsibility but also significantly streamlines the process of monitoring and managing environmental impact, thereby enhancing overall business efficiency.
In this blog, we cover the practice of carbon emissions reporting, the three scopes of emissions that organisations must track, and some of the features and benefits of Business Central’s sustainability solution.
As the world becomes more alert to the threat of climate change, measuring and managing carbon emissions has become crucial for promoting environmental sustainability. Organisations of every type and size are increasingly held accountable for their carbon footprint, making precise reporting essential for transparency and compliance with environmental standards.
The Dynamics 365 Business Central 2024 Release Wave 1 is a significant update that introduces new features and enhancements to improve business operations, including:
AI Integration: Enhanced AI features, such as AI-powered transaction matching and analysis tabs, can be used to quickly identify trends and anomalies in energy consumption or waste generation, thereby aiding in more efficient resource allocation and waste reduction strategies.
These features allow organisations to make faster, data-driven decisions, improve reporting accuracy, and free up resources to focus on strategic initiatives rather than manual data analysis.
Project Management Improvements: New project management capabilities, including archiving, automatic location assignments, and streamlined invoicing, contribute to more efficient operations.
The improvements ensure that projects are managed more effectively, reduce administrative overhead, and enhance the ability to track project progress and costs accurately.
General Application Updates: Improved UK localisation, integration with Power Platform, and enhanced document management functionalities support better overall user experience and data management.
These updates facilitate smoother operations, enable seamless integration with other business applications, and ensure that documentation is handled efficiently to enhance productivity and compliance with local regulations.
Collectively, the updates aim to boost efficiency, accuracy, and user experience across various business processes, including the ability to report on carbon footprints by tracking and managing GHG emissions.
The Environmental, Social, and Governance (ESG) standards define three scopes of emissions that organisations must track:
Business Central enables comprehensive tracking and reporting of GHG emissions across these three scopes, ensuring that organisations meet ESG requirements and accurately assess their environmental impact.
It empowers organisations to do this through two main tools: Sustainability Journals and The Chart of Sustainability Accounts.
Sustainability Journals
Sustainability Journals in Business Central are a powerful tool for manually entering known emission data. If this data is lacking, organisations can use built-in formulas to calculate emissions accurately. The formulas are based on specific, known parameters corresponding to various sources and accounts to enhance accuracy, efficiency, transparency, and regulatory compliance.
Whether through manual input or built-in formulas, the Journals provide organisations with a straightforward, accurate way to capture and analyse their environmental data and simplify the reporting process.
Sustainability Journals also ensure compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD), which requires companies to report on the sustainability of their activities. The Journals are designed to meet the stringent reporting requirements of the CSRD, ensuring that ESG compliance aligns with other global standards.
Chart of Sustainability Accounts
The Chart of Sustainability Accounts is designed to categorise and organise emissions data. It includes metrics for energy consumption, waste generation, and other relevant factors, allowing businesses to maintain a detailed and organised record of their environmental impact.
Following the same structure as a traditional Chart of Accounts, the Chart of Sustainability Accounts is explicitly customised to monitor sustainability-related data and metrics within an organisation. This structured approach ensures that all necessary data is accounted for and easily accessible for reporting and analysis.
Leveraging Dynamics 365 Business Central for carbon emissions reporting offers numerous benefits:
Compliance: Ensures adherence to environmental regulations and best practices.
Strict compliance reduces the risk of legal penalties and enhances your reputation for corporate responsibility, furthering trust among stakeholders and customers.
Accuracy: Provides precise tracking and calculation of emissions data.
Accurate data helps you to make informed decisions, optimise operations, and effectively manage your environmental impact, ultimately contributing to more sustainable practices.
Efficiency: Streamlines the data entry and reporting process with integrated tools and features.
Increased efficiency reduces the time and resources required for emissions reporting, allowing you to allocate more effort towards strategic initiatives and innovation.
Business Central enhances the visibility of an organisation’s environmental impact, promoting accountability and trust, and giving stakeholders and customers confidence in the company’s ethical practices.
Transparent reporting builds credibility with investors, customers, and regulatory bodies and demonstrates your commitment to sustainability and ethical practices.
Incorporating these capabilities into Business Central reflects a serious commitment to sustainability. It enables organisations to take proactive steps in managing their environmental footprint.
As regulatory pressures and public expectations for corporate responsibility continue to grow, tools like Business Central are indispensable for organisations striving to meet their sustainability goals.
BCN is the expert in helping businesses to maximise their investment in Business Central.
We specialise in delivering flexible Business Central 365 solutions that get to the heart of our customers’ challenges. We hold the the Microsoft designation – Microsoft for Partner Business Applications – which is proof of our knowledge and successful implementations of so you can unlock the full power of your technology investments.
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