Structuring the DPEF to Address the Environmental Challenges of High-Carbon Activities
Driven by stricter European requirements and rising expectations regarding accountability, the Non-Financial Performance Statement (NFPS) is playing an increasingly important role in corporate communications. It is now at the heart of CSR communications, with higher expectations regarding the consistency, substantiation, and traceability of the information disclosed. For organizations exposed to significant environmental impacts, it is no longer merely a regulatory document; it has become a framework for reporting on how the company is structured and making progress.
In this context, the goal is not simply to “fill out” a DPEF, but to develop it in a clear, coherent, and verifiable manner, based on factual evidence, well-defined priorities, and robust consolidation methods. This requirement for clarity and verifiability also addresses the need for responsible communication: explaining what we do and being able to prove it.
This article offers a practical guide: first, how to structure the DPEF effectively, and second, how Decarbo’Solution® can support this process with its dedicated modules.
Contents
The DPEF and the Carbon and Financial Challenges Facing Carbon-Intensive Companies
A Comprehensive European Regulatory Framework for Businesses
Stemming from a European directive, the Non-Financial Performance Statement (NFPS) is part of a framework designed to enhance corporate transparency regarding companies’ overall performance. It primarily applies to publicly traded companies and certain privately held entities that exceed specific thresholds in millions of euros, particularly with regard to revenue, total assets, or headcount.
This statement requires the disclosure of non-financial information that enables the assessment of environmental, social, and governance issues, in addition to traditional financial reporting. It builds on the NFRD, before transitioning to a more robust framework under the CSRD.
Beyond regulatory compliance, this framework addresses the growing expectations of investors, financial partners, and stakeholders, who seek a better understanding of corporate responsibility regarding climate and financial risks. These increasing demands are based in particular on the ESRS, which specify the structure and level of detail expected for sustainability reporting
Carbon at the Heart of Environmental and Financial Challenges
For companies with a large carbon footprint,the DPEF places a strong emphasis on emissions and their environmental impact. Preparing a reliable carbon report helps identify the sources of emissions objectively, whether they are related to material flows, purchases, or internal processes.
These factors are key drivers in the analysis of climate-related risks, both from an environmental and a financial perspective. Rising carbon costs and carbon taxes, changing regulations, and market expectations can have a direct impact on a company’s financial performance and its ability to remain competitive.
The quality of the data collected and its verification are therefore essential to ensuring the credibility of the published information and to supporting sound management and investment decisions.
DPEF, Performance, and Governance: A Strategic Management Tool
The DPEF is more than just a reporting requirement. It is a powerful management tool that links financial performance, ESG criteria, CSR, and sustainability strategy. By structuring their reporting practices, companies can better align their economic, environmental, and climate goals .
This approach promotes more robust governance, based on measurable criteria and shared indicators, thereby strengthening the confidence of investors and stakeholders. It also makes it possible to formalize commitments made regarding the energy transition, anticipate regulatory changes, and develop a coherent and sustainable climate strategy.
As a result, the DPEF becomes a key tool for integrating sustainability into the heart of decision-making and anchoring performance in a long-term framework.
Developing a Reliable DPEF Based on Data and Non-Financial Reporting
Identify the priorities to be analyzed in the statement
The development of an effective DPEF relies first and foremost on a detailed analysis of the issues that are significant to the company. This step makes it possible to prioritize the topics to be addressed in the report, in line with regulatory requirements and the expectations of internal and external stakeholders.
This involves, in particular, identifying the financial, environmental, and social risks that could affect the company’s trajectory, as well as the associated levers for action. This methodical approach helps to strengthen the consistency of reporting and ensure the relevance of the information published as part of the DPEF. This prioritization can be formalized through a Materiality Matrixto align key issues, stakeholder expectations, and reporting priorities.
Collect, organize, and ensure the reliability of non-financial data
The quality of a DPEF depends directly on the reliability of the data used. Data collection must be based on clear, documented, and consistent processes that cover the entire organizational and functional scope of the company, particularly flows related to procurement and value chains.
Emissions are among the key indicators that must be documented, along with information related to CSR practices, ESG criteria, and environmental impacts. Structuring the data facilitates its use in financial and non-financial reporting, while ensuring consistency from one year to the next.
When a company has one, the BDESE can serve as a useful tool for consolidating certain social and environmental information, provided that its consistency, reliability, and traceability are ensured.
Special attention must be paid to verifying the information collected to ensure its accuracy and traceability. This rigor is essential to ensure the security of the publication and strengthen the credibility of the process.
Aligning Non-Financial Reporting and Strategic Management
Beyond compliance, the DPEF serves as a key tool for risk management and the company’s strategic direction. By integrating environmental, social, and financial data, this reporting helps inform decision-making and adjust the objectives set by management.
This approach promotes better integration of responsible practices into internal processes and strengthens the company’s ability to anticipate regulatory and economic changes. It also helps improve the clarity of the information communicated to stakeholders by providing a clear and structured overview of the company’s commitments and the results achieved.
Designed in this way, the DPEF becomes a fully-fledged management tool, based on reliable data, rigorous analysis, and a commitment to continuous improvement.
First, the use of GCI has led to a significant reduction in the uncertainty of the GHG inventory—particularly for Scope 3—from 50% to 5%. The group therefore has data that is 95% accurate.
Using supplier data collected and analyzed by the GCI tool, in-depth analyses were conducted internally on the impact of 35,000 products, grouping suppliers into 170 categories. This represents more than 80% of purchases by volume and value.
Decarbo’Solution®: Operational Solutions for Structuring the DPEF
A methodological framework to ensure the accuracy of the report
Decarbo’Solution® is based on a proven methodological framework designed to help companies structure their non-financial reporting. This approach draws on recognized expertise in ensuring the reliability, consistency, and comparability of data, in line with current and future regulatory requirements.
This common framework helps ensure the quality of the analyses conducted, enhances the traceability of the factors taken into account, and safeguards the verification processes. It provides a solid foundation for structuring the DPEF in a rigorous and consistent manner, regardless of the company’s initial level of maturity.
Modules tailored to the key drivers of the DPEF
Decarbo’Solution® is based on several complementary modules that can be activated according to the priorities identified in the declaration.
- Decarbo’Supply® helps involve suppliers in the process by facilitating the collection and organization of data from the supply chain. This module provides greater visibility into indirect emissions and enhances the overall consistency of the report.
- Decarbo’Commit® provides a structured and comparable assessment of the maturity level of suppliers or portfolio companies. By relying on standardized criteria, it enables the initiatives undertaken to be evaluated objectively and helps eliminate areas of uncertainty within the scope of the analysis.
- Decarbo’Transport® focuses on transportation and logistics flows by providing highly accurate calculations and supporting the implementation of operational optimization plans, particularly in relation to existing regulatory mechanisms.
Steering the course and shaping strategic decisions
To go beyond the initial structuring of the DPEF, Decarbo’Solution® also offers tools designed for management and forecasting.
- Decarbo’Tender® incorporates environmental criteria directly into requests for proposals, enabling an objective comparison of suppliers and ensuring that these factors are given greater consideration inbusiness decisions.
- Decarbo’Target® allows you to develop quantified roadmaps, simulate different scenarios, and track progress toward defined goals, based on consolidated data—particularly data related to procurement.
- Decarbo’Asset® provides a consolidated and dynamic view at the group, portfolio, or subsidiary level. This module allows users to track changes in key metrics over time and compare actual results to defined targets, thereby facilitating overall management.
A Well-Structured DPEF to Support Corporate Strategy
By combining these various solutions, Decarbo’Solution® enables the DPEF to be structured as a true decision-making tool. The declaration then becomes a central resource for aligning practices, steering objectives, and strengthening stakeholder engagement, while ensuring compliance with regulatory requirements.
This integrated approach helps to embed environmental and social responsibility within a structured, measurable, and sustainable framework, in line with the requirements of the European regulatory framework.
The Non-Financial Performance Statement now servesas a key framework for companies subject to stricter regulatory requirements. When approached methodically, it goes beyond a purely declarative approach to become a structured tool for analysis, management, and strategic alignment.
In sectors with significant environmental exposure, the reliability of data, the rigor of its verification, and the consistency of the practices implemented are critical. They determine a company’s ability to manage its financial risks, set credible goals, and strengthen its commitment to all stakeholders.
Using a modular and operational approach, Decarbo’Solution® enables organizations to structure their DPEF in a gradual, consistent manner that is tailored to real-world conditions. The solutions offered help companies manage their obligations while facilitating the integration of environmental and social criteria into the core of their strategy and decision-making processes.