An organization’s sustainability reporting journey can be quite complex. It involves numerous steps, such as conducting a stakeholder materiality assessment and setting long term KPIs and targets. But many companies are not necessarily defining the data strategy that underpins this reporting journey. This blog aims to highlight the importance of creating a data strategy that enables long term sustainability reporting goals to future-proof their data for 2025 and beyond.
Data for the Long Term
With organizations under pressure to set ever more stretching targets comes an increased focus on understanding how a data strategy is going to feed into delivering on non-financial targets in the long-term. Science-Based Targets, the EU Taxonomy and the Global Goals for Sustainable Development (SDGs) are key drivers for this shift to long-term thinking and target setting. In order to be able to report robust and relevant data, organizations need to consider implementing a data strategy that will future-proof their reporting. At the same time they need to find a way to navigate the evolving regulatory landscape, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the SEC’s climate-related disclosures.
Embedding a data strategy should enable organizations to define a clear path for data management, facilitate reporting resilience and engage stakeholders in the data. It can also help them embrace technology and balance their short- and long-term reporting effectively.
1. Embedding a Data Management Process
When embedding a data management process, there are a number of key considerations organizations should take.
- Existing processes. Rather than attempting to create something from scratch, what’s already in place that can be used as a platform for a new process? Similarly, what existing processes need to be potentially navigated around?
- Boundaries. Consider the reporting boundary you’ll cover. If suppliers will need to be engaged, scopes included and importantly how these things might change in the future.
- Internal and external stakeholders. Building a network of contacts with a clearly defined, common goal is important. You can define roles using a responsibility assignment matrix (Responsible, Accountable, Consulted, and Informed).
- Timing. When in the year should tasks take place and what are the timescales for data collection, analysis and verification? Is there time to set up a dry-run report?
- Aims, objectives and performance indicators. A best practice data strategy will clearly define these for the strategy itself as well as for targets. What does good look like?
- Channels of engagement. How can team calls, meetings and written communications be leveraged? The greatest impact comes from linking these to the aims, KPIs and objectives of the data strategy.
2. Facilitate Reporting Resilience
Traditionally reporting has been a cyclical process of “collect – analyze – report” on a monthly, quarterly or yearly cycle. With the increasing complexity of sustainability regulations, future-proofing your data encourages organizations to put continuous data collection at the heart of the process, from which reporting snapshots can be taken at desired intervals. Materiality should still play a key role in defining what data needs to be gathered but continually feeding a data management process (and/or system) means that inter-reporting and ad-hoc analysis can be more simply carried out.
In a landscape that seems to be putting more and more pressure on organizations to report non-financial information, a data strategy will only become more important in ensuring resilience to new or changing reporting requirements. Further B2B reporting, an increased breadth and moving beyond annual reporting to short term (microsites) and long-term thinking (SDGs) are demonstrating that organizations with data at the heart of their reporting are able to leverage single data sets for a plethora of reporting needs.
3. Engage Stakeholders in the Data
Future-proofing data means that stakeholders are engaged with a defined process for inputting, analyzing and reporting information. As well as fostering buy-in, this allows for different stakeholder groups to be engaged with the process in a way that resonates with their roles and priorities. For example, the best organizations wouldn’t engage with a data analyst who is migrating their current spreadsheet management system to a more sustainable online platform. In the same way a Managing Director might be engaged with training on accessing a series of KPI Dashboards. A clear data strategy will create buy in for these different audiences.
4. Embrace Technology
Software is an opportunity for an organization to anchor their data strategy around a focal point of engagement. The benefits of technology for future-proofing non-financial data include:
- Single hub – Technology offers a home for all non-financial data
- Sustainable – A system and process that supersedes staff changes
- Cost effective – A solution to time consuming offline and “death-by-spreadsheet” processes
- Enables change – Implementation drives behavior change and kick-starts materiality
- Analytical evidence – Enables automated data comparisons, benchmarking and flagging of data
- User-centric – A tailored stakeholder experience
- Adaptable – A flexible system that changes with the reporting landscape
5. Balance Short-Term vs. Long-Term Reporting
There’s a growing trend for organizations to provide more reporting, more often and in a more audience-focused way. As such it can be difficult to balance the frequency and level of detail for most impactful reporting.
For some the digitalization of reporting offers an opportunity to break free from the shackles of a bulky annual PDF report. Snapshot updates on the most-material issues through microsite updates, briefings and social media can provide stakeholders with more frequent information on an organization’s most material KPIs. To balance this short-term reporting, organizations are leveraging online evergreen content that don’t change as often and can be updated less frequently. Some argue that this deconstructs the traditional report model. However, for many it offers a structure that aligns more closely with stakeholder appetite for timely and relevant information.
How Sustainability Software Can Support Long-Term Reporting Goals
Cority’s sustainability software offers an integrated solution to help organizations streamline their sustainability data management and reporting processes. With a focus on accuracy, scalability, and flexibility, Cority empowers businesses to collect, analyze, and report on ESG data in real-time. Our platform supports long-term sustainability goals by facilitating continuous data collection, ensuring compliance with evolving regulations and providing actionable insights through powerful analytics. By leveraging Cority’s software, organizations can future-proof their sustainability reporting while driving operational efficiency, mitigating risks, and enhancing stakeholder engagement. Ready to see our software in action?
