In today’s rapidly evolving business landscape, sustainability reporting has become a crucial component of corporate strategy. Organizations face increasing regulatory pressure to disclose their environmental, social, and governance (ESG) impacts. However, a significant technology gap makes it hard for many organizations to report accurately and efficiently. This blog explores the main challenges and how to overcome them.

Key Technology Gaps in Sustainability Reporting ​

Reliance on Outdated Tools: Manual processes and error-prone spreadsheets are a major roadblock to reliable ESG reporting.  A recent report of KPMG US 2024 ESG Organization found that a staggering 55% of companies still rely on spreadsheets, leading to an average error rate of 5% per data entry. This inefficiency undermines the credibility of ESG data and hinders progress towards sustainability goals. 

Lack of Integrated Systems: ESG data often comes from disparate sources within an organization, such as supply chain data, human resources information, and environmental impact metrics. The absence of integrated systems to consolidate and analyze this data creates silos, hindering a comprehensive view of an organization’s ESG performance. 

Insufficient Data Management Capabilities: Advanced data management and analytics are crucial for tracking ESG performance and identifying areas for improvement. However, many organizations lack the sophisticated tools necessary for effective data collection, analysis, and reporting. 

Resource Constraints: Implementing and maintaining advanced ESG reporting technologies requires significant investment in both financial and human resources. Smaller organizations may struggle with these limitations, often relying on less efficient methods. 

The Consequences of the Technology Gap

The consequences of this technology gap are manifold: 

Inefficiency: The lack of integrated technology creates a cumbersome reporting process, consuming valuable time and resources that could be better spent on strategic sustainability initiatives. Companies relying on manual data entry exemplify this inefficiency, spending significantly more time on ESG reporting than those using automated systems. To address concerns about greenwashing, investors increasingly expect fully audited ESG reports, with 94% believing current reports may contain unsupported claims. 

Consequences of the Technology Gap

Inaccuracy: Without robust data management systems, the risk of errors in ESG reporting increases, which can undermine stakeholder trust and lead to non-compliance with regulatory requirements. 

Missed Opportunities: Effective sustainability reporting can uncover insights that drive innovation and competitive advantage. Organizations lacking the technology to harness these insights may miss out on significant opportunities for growth and improvement. 

Bridging the Technology Gap in Sustainability Reporting

To address these challenges, organizations must invest in modern, integrated ESG reporting solutions. Here are some strategies to bridge the technology gap: 

Adopt Advanced ESG Reporting Platforms: Utilizing platforms specifically designed for ESG reporting can streamline data collection, analysis, and reporting processes. These platforms often include features like automated data integration, real-time analytics, and customizable reporting templates. As these platforms automate tasks and streamline data management, they offer significant efficiency gains for companies. This translates to a marked improvement in reporting speed and accuracy. The graph further illustrates this point. As the level of platform adoption increases, so does reporting efficiency. This trend reflects the positive impact these platforms have on the reporting process. 

Technology Gap in Sustainability Reporting

Invest in Data Management and Analytics: Advanced data management tools and analytics capabilities are essential for handling the complex and diverse data sets involved in ESG reporting. Investing in these technologies can improve data accuracy, provide deeper insights, and enhance decision-making. 

Enhance Internal Capabilities: Training and educating employees on the importance of ESG reporting and the use of advanced technologies can build internal capacity and reduce reliance on external resources. 

Leverage Artificial Intelligence (AI): AI and machine learning can significantly enhance ESG data collection and analysis, providing predictive insights and identifying trends that may not be apparent through traditional methods. 


The technology gap in sustainability reporting poses significant challenges for organizations aiming to achieve their ESG goals. However, by investing in advanced data systems, training employees, and fostering cross-departmental collaboration, organizations can bridge this gap and enhance their sustainability reporting capabilities. 

Ready to take control of your ESG reporting?

Ecodrisil’s ESG Xpress provides a flexible and powerful platform with pre-loaded solutions to manage ESG performance, risks, and reporting. This agile, user-friendly solution helps streamline ESG initiatives with large-scale automation of performance tracking and reporting, turning ESG intentions into tangible impact. Ecodrisil ESG Xpress empowers organizations to drive sustainable success through enhanced efficiency and accuracy in ESG assessments and reporting. 

Let Ecodrisil help you bridge the technology gap and achieve your sustainability goals. Contact us today for a free demo!