Multiple teams. Disconnected systems. Inconsistent updates. Countless data points. Sounds familiar? If your sustainability team is still juggling spreadsheets and emailing metrics back and forth, it’s time to reconsider.
ESG (Environmental, Social, & Governance) reporting has become an important business function and the data behind it is a treasure trove of information. When ESG data is used strategically, it can uncover new growth opportunities, fuel smarter decisions, and help businesses stay ahead of the curve.
Over the past decade, the number of formal ESG frameworks has increased by 155%, making ESG reporting more demanding than ever.
This blog outlines why outdated workflows are a liability. We’ll explore the hidden costs, regulatory risks, and missed opportunities for manual tracking, and why investing in an ESG data management platform is important.
The Real Challenge? Making ESG Data Work for You
Think of ESG data like raw material. You’ve got to mine it, clean it up, and actually put it to work. Sounds simple, right? But when you’re staring at piles of disconnected data with no real context, that’s where things get tricky.
Most companies struggle not with the lack of ESG data, but with tracking and analysis. It’s often scattered across teams, systems, and spreadsheets, making it difficult for organizations to efficiently draw insights from them. The real value of ESG reporting stems from centralized management of sustainability data. An ESG data management platform can solve these problems by linking data sources, imposing standardized definitions, and revealing issues prior to the final report.
Why Spreadsheets Are a Risk, not a Solution
Spreadsheets were a good place to start. They’re flexible, easy to use, and don’t require IT support. But they weren’t designed for collaborative, audit-ready ESG disclosures at a time when digital adoption is at its peak, and regulatory standards are shifting at a breakneck speed.
While spreadsheets may work for basic tracking, they quickly collapse under the weight of large-scale, multi-departmental enterprise reporting.
Following are the shortcomings of spreadsheets in the face of complex ESG reporting:
| Version control chaos: Dozens of conflicting files floating around with no single source of truth. | Delayed decision-making: Too much time spent validating, not enough spent analyzing. |
| No audit trail: Changes can be made without oversight, raising red flags during assurance. Regulators want audit trails & excel can’t provide them. | Error-prone logic: Complex formulas break easily. A minor formatting change can throw off entire emissions calculations.
|
The Solution: ESG Data Software That Works With You
Companies using ESG software can report up to 2x–2.8x faster than those relying on manual processes.
An ESG data management platform solves these challenges by:
- Integrating data from across your organization
- Automating data collection and validation
- Providing version control and audit trails
- Highlighting anomalies before they reach your final report
- Enabling real-time collaboration and faster decision-making
ESG software reduces administrative time by up to 50%, improves data quality by at least 45%, and enables real-time reporting.
With the right ESG reporting software, your team spends less time on reporting and more time on strategy. It’s not just about compliance; it’s about unlocking better business outcomes.
Manual Tracking Wastes Time and Buries Strategy
According to KPMG, 83% of companies believe they’re ahead of their peers in ESG reporting. But nearly half still rely on spreadsheets, and only 18% obtain third-party assurance. The gap between perception and reality is costly.
Manual reporting eats up resources that could be better spent:
- Identifying and addressing emissions hotspots
- Aligning ESG performance with financial planning
- Preparing for third-party assurance or investor due diligence
With automated workflows, ESG teams gain time to do the work that drives actual sustainability outcomes.
What ESG Data Software Actually Delivers
| Capability | Manual Tracking | Automated ESG Reporting |
| Data Collection | Emails, Excel uploads | Direct from source systems or web forms |
| Data Accuracy | Manual validation | Built-in logic checks and alerts |
| Framework Alignment | Manually mapped | Preloaded taxonomies (e.g., GRI, ISSB, ESRS) |
| Audit Trail | Informal notes | Immutable logs and change history |
| Reporting | Static spreadsheets | Interactive dashboards and exports |
These features not only ensure higher data quality but also reduce reporting cycles and improve stakeholder confidence.
The difference is clear; automation brings structure, speed, and reliability. Platforms like IRIS CARBON® are solving these data challenges with a purpose-built, data-centric ESG reporting approach. By enabling seamless integration with internal systems, offering ready-to-use framework templates, and ensuring audit-readiness, IRIS CARBON® helps teams turn ESG data from a reporting burden into a strategic asset.
Final Thoughts: Time to Reclaim Control
Manual ESG tracking might be inexpensive but have high behind-the-scenes costs like hours wasted, credibility compromised, and insights delayed. As ESG disclosure becomes mission-critical to financial strategy and regulatory compliance, organizations require tools that meet the stakes.
An effectively executed ESG data management platform allows consistent, auditable, and timely reporting. It empowers your team to strategize rather than spread out across spreadsheets. That’s how you transition from compliance to leadership.
Source: Esgtoday | Keyesg | Coherentmarketinsights
