ESG reporting: Untangling the web

With some of our clients seeing a staggering 500% increase in data requests for ESG information – and a 300% rise in complexity – the sheer volume of demand can be overwhelming. As the web of ESG legislation tightens, focusing on four key actions can help untangle the complexity, streamline your ESG reporting, and turn a daunting task into a manageable process.

Achieving efficiency in annual environmental, social, and governance (ESG) reporting goes beyond ticking boxes for regulatory compliance; it requires a return to the fundamental aspects of reporting.

At Implement, we believe that reinforcing the core elements of ESG reporting helps organisations improve their reporting processes and data quality. By targeting key aspects of the reporting process, they can tackle common inefficiencies head-on and transition from an ad-hoc to a streamlined approach.

ESG reporting: The ever-changing spider’s web

The pressure on organisations to provide clear, comprehensive, and accurate ESG reporting has never been higher. Companies are now expected to reveal the nitty-gritty of their sustainability efforts, which has become an essential part of protecting brand reputation, earning stakeholder trust, and fostering strong partnerships. Add to that a tangle of new regulations, like the Corporate Sustainability Reporting Directive (CSRD), the Corporate Social Due Diligence Directive (CSDDD), and Green Claims, alongside rising demands from customers and suppliers, and the complexity skyrockets. As if that were not enough, the EU Commission’s introduction of the Omnibus Regulation on 26 February 2025 adds even more knots to an already tangled web, making compliance efforts even trickier. Where do we, as businesses, begin to unravel it all?

Unlike regular annual reporting, many organisations approach ESG reporting on an ad hoc basis, which lacks structured processes and proper governance. Consequently, the quality of ESG data will suffer, which can lead companies to inadvertently report incomplete, inaccurate, or outdated information. Without a systematic approach to ESG reporting, organisations risk facing inefficiencies that hinder their ability to meet current requirements and keep up with future demands for high-quality ESG data.

The most common and particularly damaging organisational reporting inefficiencies we observe include:

1. Resource-intensive processes: Relying on manual processes for data collection, controlling, and reporting – coupled with a lack of clear governance – is both time-consuming and inefficient.
2. Data quality issues: Manual data collection and calculations often result in inconsistencies and errors, which can misguide business decisions, hinder performance, and cause reputational damage.
3. Dispersed data sources: ESG data is often scattered across various departments and systems, making it difficult to gather and consolidate effectively. Additionally, a lack of processes and methodologies hampers the necessary calculations, verification, and consolidation of data.

As the web of ESG reporting requirements continues to grow more complex and intertwined, these organisational reporting inefficiencies will only become more pronounced.

Immediate efficiency gains in four actions

ESG reporting efficiency is achievable with the right strategies and tools. At Implement, we understand that many perceive ESG reporting as a daunting and complex task. However, certain key aspects have been proven to enhance efficiency. The visualisation below shows, at a high level, the process of reporting ESG data and its natural flow – from data collection to performance assessment and external reporting. By breaking down the process into three reporting areas – Collection & Definitions, Consolidation & Controlling and Performance & Reporting supported by a clear ESG governance structure, organisations are provided with a clear outline to improve their reporting efficiency.