How to build a data foundation for effective sustainability reporting

Is your technology actually helping you meet sustainability goals? 

Sustainability has become a boardroom priority. Whether driven by regulation, consumer demand or the need for long-term efficiency, organisations face increasing pressure to track, report and reduce their environmental footprint. 

Reliable data is the foundation to every effective sustainability strategy. It must be accurate and able to withstand scrutiny.  

Yet, this is a major challenge. According to EY, 91% of organisations are under investor pressure to improve their sustainability, but just 29% trust their data. 

Why sustainability reporting matters now 

The landscape for sustainability reporting is shifting.  

Regulations like the Corporate Sustainability Reporting Directive (CSRD), Global Reporting Initiative (GRI) and Greenhouse Gas Protocol are setting clear standards on how organisations should measure their environmental impact. Failing to meet them can lead to regulatory fines and exclusion from supply chains or procurement opportunities.  

But it’s not just regulators demanding action. Consumers and employees are paying closer attention. And they’re quick to call out companies that overpromise and underdeliver. EY reports that 39% of organisations have suffered reputational damage in the media or on social platforms for not doing enough.  

Sustainability is also becoming increasingly linked to overall business performance. Organisations that embed it deeply into their strategy are outperforming peers in profitability, resilience and long-term value creation.     

Why sustainability data remains a challenge 

Despite its urgency, most organisations still struggle to produce accurate and audit-ready sustainability reports. The reasons are probably familiar to you but fixable: 

Fragmented systems create blind spots and risk 

Sustainability data comes from everywhere, like manufacturing plants, logistics platforms, HR systems, procurement tools and supplier portals. 

This data is often siloed across functions, trapped in outdated systems, or not tracked at all. 

Without a solution to collect, integrate and manage data at scale, organisations end up relying on manual workarounds and inconsistent reporting which introduces errors and delays. 

For example, global retailer Proctor and Gamble manage a supply chain with over 80,000 suppliers globally. Without automation and integration, consolidating data at that level becomes almost impossible.  

Data gaps and inaccuracies  

Even when systems are connected, missing or incomplete data is a challenge. 

The GHG Protocol highlights that 83% of organisations struggle to access reliable emissions data and only 56% of suppliers actually share this information with their corporate customers. Of those who do share, the data varies significantly. Some report only Scope 1 and Scope 2 emissions, while others include the more complex Scope 3. This inconsistency makes it hard to compare and truly trust the numbers.  

When data is incomplete or inaccurate, it opens the door to accusations of greenwashing and can seriously damage your reputation. 45% of US organisations admit they worry about unintentionally misleading stakeholders due to unreliable sustainability data. Over half of UK consumers (57%) suspect organisations are hiding the true extent of their environmental, social and economic impact.

Too many sustainability reporting standards 

With multiple frameworks in play like CSRD, GRI, SASB, CDP and TCFD, there is no universally accepted blueprint for sustainability reporting.   

The IFAC reports that 93% of organisations use a mix of sustainability standards, creating inconsistencies in how data is collected, reported and interpreted.  

CDP for example, focuses mainly on carbon emissions, water usage and deforestation. Another, GRI, takes a wider view, covering not just environmental factors but also social issues like resource use, energy management, labour practices and human rights. 

With so many different standards, organisations struggle to know which metrics truly matter, how to accurately measure progress and what “good” looks like in a way that’s clear and actionable.  

Limited resources and infrastructure 

Sustainability reporting is about far more than spreadsheets. It requires smart automation, thorough data validation and teams of skilled analysts who can turn raw data into insights. For many organisations, the cost and complexity of building and maintaining this capability is a significant barrier. 

A KPMG survey of 750 organisations worldwide found that 75% felt unprepared for sustainability assessments due to insufficient tools, policies and systems. 

External pressures and geopolitical shock 

Constant geopolitical shifts, regulatory changes and disruption in supply chains make it hard to maintain accurate and current data. In consumer goods for example, fluctuating tariffs and material shortages often cause sudden changes in supply chains, which can create gaps in data.  

Without reliable data, organisations find it difficult to respond quickly and make decisions that drive real progress.  

How to build a stronger data foundation for sustainability reporting 

To report sustainability progress with confidence you need a data infrastructure built for transparency, accuracy and agility.   

Here’s what that looks like. 

1. Capturing the right data: identify and capture the right sustainability data, including energy usage, emissions, supply chain impacts and social metrics. For example, a logistics organisation might track fuel efficiency across its trucking fleet and monitor emissions from shipping operations. 
     
2. Integrating systems to eliminate silos: integrate data from multiple systems and business functions to create a single source of truth. This could mean connecting HR systems, procurement platforms and environmental monitoring tools so that all sustainability data flows into one central dashboard, making reporting smoother and more accurate.   
   
   
3. Validating and standardising for quality and auditability: apply data validation, cleansing and standardisation processes to ensure data is reliable, comparable and ready for external audits. This is important because high-quality data is essential for meeting regulatory requirements and building stakeholder trust.  
   
   
4. Aligning with global standards: build your data models around key frameworks like CSRD, GRI and the GHG Protocol, while also adjusting for regional and industry-specific rules. This helps keep your reporting credible and consistent. 
   
   
5. Enabling real-time insights and decision-making: incorporate sustainability metrics into strategic planning to drive continuous improvement and agile decision-making. For example, a manufacturing organisation using real-time energy consumption data can optimise its production processes, reducing both emissions and operational costs.   

Your partner in smarter sustainability reporting 

Today, sustainability reporting is critical for any business that wants to succeed. 

By choosing NashTech as your sustainability partner, you gain access to the expertise and technology needed to scale your sustainability reporting. Whether it’s deploying our cloud-based data accelerator, enhancing existing sustainability systems, or building custom solutions tailored to your reporting needs, we can help you build a future-proof data foundation. 

Ready to transform your sustainability reporting? Get in touch today.