Harnessing innovation: the benefits of digital sustainability reporting

In today's fast-evolving business landscape, the growth of digitized or AI-based reporting solutions is revolutionizing industries across the board. This transformative technology is not only reshaping business operations, but also unlocking unprecedented opportunities for sustainability reporting and ESG data collection.??

Yet, amid this surge of innovation, a crucial question emerges: are businesses truly equipped to leverage these digital advancements effectively? Insights from a recent KPMG survey of 550 board members and managers suggest the answer is: “not really”. Over half of the respondents still rely on spreadsheets for ESG data collection, management and reporting: a challenge to be urgently addressed, given the increasing importance of sustainability reporting. ?

Traditional reporting is a process prone to errors (manual entries, formula mistakes, etc), undermining data reliability. They may also suffer from a lack of robust data validation and governance, essential for meeting regulatory requirements and investor expectations. And as sustainability reporting grows more complex, spreadsheets struggle with handling diverse data volumes efficiently, hindering consolidation and analysis. ?

Yet, there is hope on the horizon. The advancement of ESG software and tools for digitized reporting is providing promising solutions, as they can offer significant benefits to businesses and sustainability reporters:?

• Enhanced data accuracy and reliability: minimizes errors and inconsistencies compared to traditional spreadsheet-based methods.?

• Smoother data collection and management: automates gathering, organization and retrieval of ESG data.?

• Streamlined integration of existing reporting frameworks: GRI Standards are a prime example, and their incorporation will become easier thanks to dedicated digitization efforts. ?

• Efficient regulatory compliance: provides real-time updates and automates report generation, to ensure compliance with regulations, such as the CSRD. ?

• Improved stakeholder engagement: enhances transparency through interactive dashboards and visualizations, fostering trust and demonstrating sustainability commitment.?

• Efficiency gains and cost savings: tasks and workflows can be automatized, allowing reallocation of resources to other strategic priorities.?

The GRI Licensing Software & Tools program, already joined by over 70 Licensed Partners with their digital reporting solutions, is a catalyst for revolutionizing digital sustainability reporting. It offers early access to updates to GRI Standards and positioning, and it guarantees their seamless integration within dedicated digital reporting tools and software – a key contribution to the transition to digital ESG reporting.?

As companies continue to invest in sustainability disclosure efforts, digital tools will be increasingly crucial in overcoming reporting challenges and maximizing impact. By adopting these technologies and committing to continuous optimization of their reporting practices, businesses and organizations can truly showcase transparency, meet stakeholder expectations, and contribute to a more sustainable future. ?

?

?

?