# What’s Next For ESG Reporting?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-04
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: How ESG Reporting is Shaping Business Post Pandemic
Meta Description: Discover how ESG reporting is crucial in driving environmental commitments for large organisations post-pandemic and post-COP26. Learn more from
URL: https://financedigest.com/whats-next-for-esg-reportinghtml

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_By_ **_Daf Llewellyn,_** _General Manager EMEA, insightsoftware_

![Daf Llewellyn, General Manager EMEA, insightsoftware](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/picture1-450x600-1736816265885-compressed.jpg)

Daf Llewellyn, General Manager EMEA, insightsoftware

_“Following the pandemic and the COP26 summit, leaders of large organisations have made substantial commitments towards the environmental, social, and governance (ESG) agenda. As a result, quality [ESG reporting](https://www.financedigest.com/how-distributed-ledger-technologies-are-transforming-esg-reporting-for-financial-intermediaries.html "How Distributed Ledger Technologies are transforming ESG reporting for Financial Intermediaries") methods are now central to the debate. If companies are going to deliver on their promises, they need more robust ESG reporting [processes in place and a better way](https://www.financedigest.com/three-ways-that-female-entrepreneurs-can-supercharge-their-hiring-process.html "Three ways that female entrepreneurs can supercharge their hiring process") to collect and understand the data in front of them,” writes Daf Llewellyn, General Manager, EMEA, insightsoftware._

The climate agenda is changing the world of [business in a seismic way](https://www.financedigest.com/6-ways-how-to-create-great-tiktok-videos-for-your-business.html "6 Ways How to Create Great TikTok Videos For Your Business"). In the last year, more CEOs took a stand on ESG issues than ever before, with a Deutsche Bank study concluding that [corporate ESG](https://www.financedigest.com/green-bonds-are-set-to-drive-corporate-esg-debt-out-of-slump-in-2023-barclays.html "Green bonds are set to drive corporate ESG debt out of slump in 2023 -Barclays") priorities have changed greatly in response to the pandemic. This reaction is unsurprising. Some [companies took significant actions to prove their commitments](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability") to the ESG agenda in 2021. For example, Easyjet plans to reduce its [CO2 emissions](https://www.financedigest.com/global-energy-related-co2-emissions-edged-up-to-record-high-in-2022-iea.html "Global energy-related CO2 emissions edged up to record high in 2022 – IEA") through carbon offsetting at an estimated cost of £25 million annually, while Google announced the elimination of its carbon legacy.

At the same time, there is greater [ESG buy-side pressure from investors](https://www.financedigest.com/preventing-poor-esg-practices-from-costing-you-investors.html "Preventing poor ESG practices from costing you investors"). In 2020, ESG funds received $51 billion from investors, and a Natixis study found that 77% of professional fund selectors and 75% of institutional investors now consider ESG factors as an [integral part](https://www.financedigest.com/what-is-id-and-verification-and-why-is-it-such-an-integral-part-of-digital-life.html "What Is ID and Verification and Why is it Such an Integral Part of Digital Life?") of sound investing. This shift reflects a [growing view that ESG issues impact](https://www.financedigest.com/impact-com-appoints-a-raft-of-new-business-development-representatives-as-the-technology-companys-client-roster-grows-by-more-than-50.html "impact.com appoints a raft of new Business Development Representatives as the technology company’s client roster grows by more than 50%") long-term returns.

**ESG reporting takes centre stage**

Inevitably, ESG [reporting is now critically important](https://www.financedigest.com/indonesia-to-tighten-used-shoe-import-controls-after-reuters-report.html "Indonesia to tighten used shoe import controls after Reuters report") in holding [companies](https://www.financedigest.com/factbox-britain-shakes-up-listings-rules-to-attract-investment.html) accountable to their promises. Consequently, multiple [agencies are trying to standardise ESG reporting](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") frameworks. This year, the UK Treasury [set up a new panel to define the requirements for financial investments](https://www.financedigest.com/embracing-cloud-computing-how-and-why-organisations-are-set-to-invest-more-in-cloud-computing-in-2023.html "Embracing Cloud Computing: How and why organisations are set to invest more in cloud computing in 2023") and the framework for rating these investments as environmentally stable. Similarly, the IFRS foundation announced a new board at the COP26 summit to push for an [ESG reporting international standard](https://www.financedigest.com/esg-innovation-allowing-everyone-to-meet-the-standard.html "ESG innovation: Allowing everyone to meet the standard").

As commitments change, [companies now require more up-to-date information](https://www.financedigest.com/healthcare-information-systems-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Healthcare Information Systems Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") on environmental issues. This information includes energy use, CO2 emissions, water recycling, management of toxic emissions, and compliance with government environmental regulations Historically, the search for information extends to [data about social community investment](https://www.financedigest.com/investing-in-the-future-with-alternative-web-data.html "Investing in the future with alternative web data"), commitment to promoting diversity, better working conditions, and verifying the reputation of suppliers.

**The challenges with collecting and interpreting** [ESG data](https://www.financedigest.com/non-finance-data-sets-increasingly-sit-at-the-heart-of-investment-with-over-70-of-decisions-impacted-by-esg-factors-bright-data-research-reveals.html "Non-Finance Data Sets Increasingly Sit At The Heart Of Investment With Over 70% Of Decisions Impacted By ESG Factors, Bright Data Research Reveals")

All of this adds to greater [demand for more rigorous and verifiable ESG reporting](https://www.financedigest.com/bone-grafts-and-substitutes-market-overview-highlighting-major-drivers-growth-and-demand-report-2018-2026.html "Bone Grafts and Substitutes Market Overview Highlighting Major Drivers, Growth and Demand Report 2018 – 2026"), but that is challenging for two major reasons:

1) The [next generation of ESG](https://www.financedigest.com/fintech-trends-in-2022-whats-next-for-crypto-and-esg.html "Fintech trends in 2022: what’s next for crypto and ESG ") reporting requires the collection of up-to-date information from various sources that can be difficult to manage.

2) The requirements for ESG-related information evolve quickly, which makes it difficult to ensure corporate [reporting methods continuously](https://www.financedigest.com/ils-investment-returns-continue-to-outperform-according-to-aon-insurance-linked-securities-report.html "ILS investment returns continue to outperform, according to Aon insurance-linked securities report") adhere to the new standards.

Without an [integrated](https://www.financedigest.com/1-easy-tip-to-make-a-key-e-commerce-process-more-efficient.html) digital platform to support [reporting and disclosure, companies will struggle with increased ESG reporting requirements and may lose investment](https://www.financedigest.com/manchester-united-tanks-on-report-glazers-may-avoid-sale-with-new-investment.html "Manchester United tanks on report Glazers may avoid sale with new investment") opportunities if the data they provide fails to meet them.

Such an [integrated](https://www.financedigest.com/1-easy-tip-to-make-a-key-e-commerce-process-more-efficient.html) [digital platform needs these core](https://www.financedigest.com/de-surinaamsche-bank-expands-relationship-with-fiserv-to-upgrade-core-banking-platform-and-add-new-digital-banking-capabilities.html "De Surinaamsche Bank Expands Relationship with Fiserv to Upgrade Core Banking Platform and Add New Digital Banking Capabilities") characteristics:

- [Automated data collection to perform repetitive](https://www.financedigest.com/automating-repetitive-and-time-consuming-finance-functions.html "Automating Repetitive and Time-Consuming Finance Functions") and previously manual tasks
- Data collection connected directly to the source
- [Integrated end-to-end disclosure management process to facilitate multi-author reporting](https://www.financedigest.com/power-management-integrated-circuit-pmic-market-research-report-2022-global-forecast-till-2028.html "Power Management Integrated Circuit (PMIC) Market Research Report 2022 – Global Forecast till 2028").

In practice this means:

- Accelerating the production and formatting of regulatory, internal, and external reports by working with software that teams already know
- Connecting reports to their [source data](https://www.financedigest.com/exclusive-tiktok-nears-deal-with-oracle-to-store-its-data-sources.html "Exclusive-TikTok nears deal with Oracle to store its data-sources") to keep those reports up to date
- Having built-in version control, workflow, and an audit trail to streamline and expedite the [report production](https://www.financedigest.com/itv-shares-jump-on-reports-it-could-sell-stake-in-production-arm.html "ITV shares jump on reports it could sell stake in production arm") cycle
- [Automating as much as possible to remove residual manual processes](https://www.financedigest.com/what-businesses-can-achieve-with-microsofts-full-suite-of-process-automation-tools.html "What businesses can achieve with Microsoft’s full suite of process automation tools") and thereby eliminate errors

[**Staying ahead**](https://www.financedigest.com/staying-ahead-of-risk-this-black-friday.html "Staying Ahead of Risk This Black Friday")

In the [world of ESG reporting](https://www.financedigest.com/white-bullet-releases-ad-funded-piracy-report-for-world-intellectual-property-organisation-wipo.html "White Bullet releases Ad Funded Piracy Report for World Intellectual Property Organisation (WIPO)"), it is not “if”, but “when” change will happen. As global governments enact legislation to combat the [impacts of climate](https://www.financedigest.com/climate-impacts-heading-to-uncharted-territories-of-destruction-un-chief.html "Climate impacts heading to ‘uncharted territories of destruction’ -UN chief") change, ESG reporting moves into the spotlight as a way of measuring individual accountability.

Both regulatory and investor [demands will increase in complexity in the coming years](https://www.financedigest.com/heathrow-airport-says-return-to-pre-pandemic-demand-years-away.html "Heathrow Airport says return to pre-pandemic demand years away"), making it even more imperative that [companies](https://www.financedigest.com/factbox-britain-shakes-up-listings-rules-to-attract-investment.html) establish a routine and robust ESG reporting approach. To avoid suffering consequences down the road, the key to long-term [success is an integrated digital](https://www.financedigest.com/young-leaders-forum-debating-what-successful-leadership-looks-like-in-the-digital-age.html "Young Leaders Forum, debating what successful leadership looks like in the digital age") platform which collects and analyses ESG data in real-time, transforming the disclosure management process.


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