ESG Reporting: Expert Insights for Success — Learn how to navigate ESG reporting challenges effectively with insights from industry leaders.
Environmental, Social, and Governance ESG reporting is gaining traction as organizations face heightened scrutiny from boards and regulators on environmental and social responsibilities.
A recent survey by PwC found that 70% of companies plan to comply with upcoming SEC regulations on climate risk reporting, regardless of finalization.
At Trust ’23 Data Integrity Summit, Precisely’s Patrick McCarthy discussed aligning data practices with evolving ESG standards.
Mikkel Skougaard from Verisk Maplecroft highlighted the shift towards integrating non-financial metrics into financial reporting frameworks.
“The notion that non-financial data should be subject to different treatment than financial data is changing fast. Many of the companies we work with are asking themselves ‘if non-financial matters are financially material, then why should non-financial data be treated any differently than financial data?”
Mikkel Skougaard
Companies are increasingly focusing on robust data governance to ensure reliable reporting and aligning ESG metrics with business strategy.
The Global ESG Reporting Challenge
Reporting and compliance can be complex, especially as ESG data is diverse and widespread. Global ESG reporting lacks a unified standard, complicating compliance across jurisdictions. Matthew Rusk of GRI stresses the need for a common language to enhance decision-making and stakeholder engagement.
Data Integrity is Critical for Effective Sustainability Reporting
ESG practices are increasingly demanded by the public, driving transparency.
However, beware of “greenwashing“—false claims about ESG practices. Demonstrating real progress, like reducing plastic use, requires solid data — numbers matter.
One of the most notorious instances of greenwashing in recent memory is associated with Volkswagen. The company faced severe allegations of emissions cheating and software manipulation in their engines, famously dubbed ‘Dieselgate‘. This scandal not only tarnished VW’s reputation but also led to substantial financial repercussions, amounting to an estimated 31 billion euros and counting. The fallout from Dieselgate continues to resonate across the automotive industry and serves as a stark reminder of the consequences of deceptive environmental claims.
Companies navigating diverse reporting standards must ensure data accuracy and transparency.
Investment managers seek full ESG risk disclosure.
Regulators guard against market instability from misleading ESG disclosures.
ESG raters risk reputational damage from flawed corporate risk disclosures.
To achieve data integrity for ESG reporting:
Integrate data from diverse sources in real-time.
Enrich ESG data with contextual datasets.
Govern data securely while meeting regulatory standards.
Ensure data quality and observability for accuracy and consistency.
These capabilities streamline reporting and enhance data trust, essential for impactful ESG reporting.
ESG Reporting: Advice from the Experts
Skougaard advises aligning non-financial data governance with financial standards and using contextual data for impactful reporting. Rusk urges early adoption of ESG reporting to drive sustainability and competitive advantage.
Data Quality Matters 
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