Key Impact Points
- Evolving Regulations Demand Action: Global and state-level mandates like CSRD and California’s laws require tech companies to enhance data governance and reporting rigor.
- Tech-Enabled Solutions Boost Efficiency: Generative AI and other technologies streamline data collection, improving reporting accuracy and saving time.
- Strategic Reporting Drives Growth: Aligning sustainability reporting with broader ESG goals unlocks value and enhances transparency.
Rethink Sustainability Reporting
Mandatory reporting requirements, like the EU’s Corporate Sustainability Reporting Directive (CSRD), are transforming how tech companies approach sustainability. Compliance now demands rigorous data collection, third-party assurance, and alignment with global disclosure frameworks like ISSB and ESRS.
“Passing muster with independent third-party assurance providers and regulatory auditors requires thorough and reliable data.”
To meet evolving demands, companies must formalize their reporting processes, moving away from reactive approaches. This shift is critical to building trust with investors and regulatory bodies.
Leverage Technology for Reporting
Sustainability reporting requires vast amounts of precise data. Generative AI and other tech solutions can:
- Automate data collection from ERP systems or utility invoices in minutes.
- Boost accuracy and reduce manual workload.
CIOs play a pivotal role by implementing secure systems and sustainability-specific modules or creating centralized data lakes for auditable and accessible information.
“Responsible use of emerging technology will be key in the efforts necessary to build formal tech-driven governance processes.”
While initial investments may be substantial, the benefits—like compliance, trust, and reputational protection—are long-term.
Change the World - Subscribe Now
Navigate a Fragmented Reporting Landscape
Global sustainability standards are evolving rapidly. Countries like Australia and Japan are introducing distinct frameworks, adding complexity for multinational tech firms. In the U.S., state-led initiatives like California’s climate rules are advancing independently of federal mandates.
“Starting a conversation with regulators early on can help tech companies anticipate future regulations and prepare effectively.”
Proactively engaging with regulators and monitoring legal developments ensures companies stay ahead of compliance risks while reducing costs.
Align Reporting with Strategic Goals
Sustainability reporting is more than a compliance exercise. It offers an opportunity to drive growth by turning compliance data into strategic insights, fostering transparency, and supporting informed decision-making.
“Your reporting should be reliable, consistent and aligned with regulatory requirements.”
By leveraging these insights, tech companies can transform challenges into opportunities, positioning themselves as leaders in sustainability and innovation.
Related Article: Deloitte Accelerates ESG Reporting Globally with GreenLight Powered by Salesforce
