Optimizing INREV Reporting: Data and Change Management

What are some of the best practices for preparing INREV disclosures? Data collection, consolidation, and oversight, as well as the transformative potential of AI and change management in financial reporting are key elements.

The landscape of INREV reporting is driven by an increasing demand for data availability and reliability. Clients are faced with the challenge of preparing accurate and comprehensive INREV disclosures, necessitating a focused approach to data collection, consolidation, and review. Robust oversight and controls have become essential in the reporting process.

Emerging technologies are an asset, but they cannot replace human oversight

In today’s market, advancements in AI and data analytics software are reshaping how organizations approach data management and reporting. According to Renaud Breyer, EY Luxembourg Partner and Sustainability Leader, there is a growing market opportunity associated with using new technologies and AI for financial reporting. Embracing these tools can enhance accuracy and efficiency, but they cannot replace the critical need for human oversight and understanding of the business context behind the data.

Change management must accompany any new process

While AI can streamline data processes, it is vital to remember that it cannot address all aspects of INREV reporting. Change management plays a pivotal role in ensuring that employees understand the intricacies of the reporting requirements. For example, organizations should train their teams not only to use AI tools but also to interpret the data these tools provide. This ensures that the reports generated are not only accurate but also meaningful in the context of the organization’s goals.

The need for a structured data framework for INREV reporting

Moreover, businesses must focus on creating a structured framework for data consolidation. This includes establishing standardized templates, setting deadlines for data submissions, and conducting regular reviews of data inputs. By doing so, organizations can minimize discrepancies and enhance the reliability of their INREV disclosures. Handling hundreds of structured and unstructured data sets from diverse providers and tenants – each system potentially generating infinite interconnections – requires a structured approach, as manual handling is no longer feasible.

Turning our attention to INREV ESG reporting requirements similar principles apply. The need for reliable data and thorough preparation is paramount in ensuring compliance with ESG standards, including with the new modules released in January 2024 on ESG and Performance Management. In this regard, Anna Illarionova, EY Luxembourg Senior Manager, highlights the need for organizations to balance INREV recommended disclosures with INREV mandatory requirements, maintaining attention on environmental, social, and governance factors. Given that the real estate sector often emphasizes the environmental side, companies must consciously integrate social disclosures into their reporting practices. This ensures a holistic approach to ESG, fostering transparency and accountability.

As we conclude, organizations must prioritize data accuracy and practical approaches to data consolidation in the context of INREV reporting. Guaranteeing data security, policy compliance, and accuracy within a structured framework will enhance data reliability. New technologies can support this, but must be balanced with a focus on human resources and change management.