Why ESG Reporting Demands More Than Data

Many ESG teams spend most of their time gathering data. They chase spreadsheets, emails, and disconnected systems to meet disclosure deadlines. That process might satisfy minimum reporting requirements, but it’s not enough to build trust or meet the growing expectations from regulators and stakeholders.

According to the recently published 2025 IDC MarketScape for ESG Reporting and Compliance Management Applications, the most advanced platforms do more than collect ESG metrics. They support traceability, automate tasks, and trigger action when thresholds are breached. These capabilities help shift ESG reporting from a static activity to a live management function.

Compliance Isn’t the Finish Line

One of the key trends highlighted in IDC’s report is the pressure on companies to meet requirements such as the Corporate Sustainability Reporting Directive (CSRD). This includes collecting auditable and verifiable ESG data and connecting it to clear, transparent disclosures. But meeting a disclosure framework isn’t the end goal. The real value lies in using ESG data to inform decisions and manage risk.

Auditability and Traceability Matter

The IDC report emphasizes the growing focus on assurance. As regulations mature, external audits of ESG data will become more common, which means that teams need to do more than simply publish numbers. They will need to prove how the numbers were calculated, which systems they originated from, and whether the data was altered along the way.

Systems that offer automated tracking, evidence logs, and AI-assisted review of disclosure responses are better equipped to handle this level of scrutiny. They help ESG and sustainability leaders respond to regulator questions, investor concerns, and internal reviews with speed and clarity.

ESG Reporting Is Becoming a Team Sport

The IDC report makes it clear that ESG reporting no longer belongs to a single department. Finance, legal, risk, compliance, HR, and procurement all play a role. Platforms that support cross-functional workflows and shared visibility are better equipped to reflect how ESG risks and opportunities show up across the business.

If your ESG reporting still depends on manual collection and delayed response, now is the time to rethink your approach. Contact Archer today to learn how Archer ESG Management can help you build a more connected, accountable ESG reporting process.