Implementing ESG Reporting Software is a crucial step for businesses aiming to enhance their sustainability efforts and meet growing regulatory and commercial expectations. The process of implementing a solution can be challenging, and many organisations make mistakes that can be easily avoided.

Customer Success Team Lead Ashly Cronin-McCartney shares her thoughts on some of the most common mistake’s businesses make when embarking on their ESG Reporting journey and provides guidance on how you can avoid them.

What are some of the key pitfalls and mistakes that organisations encountering when implementing an ESG Reporting Platform?

“In my experience, a lot of the challenges that organisations encounter relates to preparation and data readiness. Poor quality data and standardisation, and a limited understanding of the factors driving ESG within an organisation can slow down implementation significantly.”

Lack of Preparation

What impact can poor preparation have on an organisation adopting an ESG solution and what can organisations do to avoid it?

“Like most things, poor or limited preparation can have a major impact on the long-term success of a project. ESG Reporting is no different. Organisations often underestimate the level of preparation required before implementing a solution.

Without a proper foundation, companies risk adopting a system or implementing processes that don’t align with their specific needs, or that become too complex and burdensome to manage effectively.

Companies need to assess and understand their specific ESG objectives. They need to consider the ethical, regulatory, and commercial factors that are driving adoption, and formulate an ESG strategy that aligns with their specific goals.”

Limited Standardisation

What about data standardisation? How can that impact adoption?

“Effective ESG Reporting requires a uniform approach to data collection. Standardised data formats and consistent processes ensure that businesses can more easily analyse and assess ESG performance, by providing like for like comparisons.

Standardisation can be particularly challenging when gathering supplier and scope 3 emissions data, due to different internal and regulatory standards. Additionally, an organisation’s own internal data can be scattered across various departments and systems.

Organisations need to ensure that any existing data they hold is in a consistent, clean, and accessible format. They need to define internal data standards and communicate their requirements to suppliers to ensure they have access to the information they need.”

To read more about setting clear ESG Reporting standards for your suppliers, check out this blog post.

Lack of Buy-In from Key Stakeholders

Internal blockers and a lack of buy-in from key stakeholders can slow down any project, not just ESG Reporting. What advice would you give to individuals encountering push back?

“Companies need to understand that ESG Reporting is a whole company exercise. Without the support of executives, department heads, and employees, implementing an ESG Reporting Solution can face resistance, leading to delays or even failure.

From a commercial perspective, developing a strong business use case that demonstrates a clear potential return on investment can help win over senior management teams.

Incentive programs, comprehensive training and resources, effective communication strategies, and a well-defined company culture can help engage operational staff responsible for day-to-day reporting and data collection.”

Our personalised ESG Return on Investment Report provides you with insights into the potential financial impact that investing in ESG Reporting can have on your organisation.

Internal Ownership

What would be your advice to an organisation currently considering implementing an ESG Reporting solution?

“Companies need to avoid treating ESG Reporting like a “set and forget” exercise. Appointing an internal champion, responsible for managing, maintaining, and reviewing performance can help avoid ESG Reporting becoming an afterthought.

Companies should also be open to asking for advice from industry experts who can provide guidance and help alleviate many of the challenges associated with implementing an ESG Reporting solution.”

Learn more

Implementing ESG reporting software is a critical step for businesses committed to sustainability and ethical governance. However, avoiding common mistakes can significantly enhance the success of your ESG initiatives.

SustainIQ is an integrated ESG reporting platform that unifies all aspects of an organisation’s sustainability activities within a single environment. Businesses use SustainIQ to measure, monitor, and report on their social, economic, and environmental performance in real time.

Our software saves sustainability professionals from wasting time chasing teams, sites, and regions for reporting information. No more unreadable spreadsheets, awkward (and incorrect) calculations, and endless report building. With SustainIQ, simply pull, input or bulk upload data and get access to your custom-built report at touch of a button.

To learn more about SustainIQ or to arrange a demo click here.