Even though improving ESG skills is widely acknowledged as being important, almost half of the organizations questioned by ESG Today report that their main tool for managing ESG data is still a spreadsheet.

This information was obtained from a survey of 550 executives, managers, and board members from a variety of industries; the majority of the respondents were from $1 billion-plus businesses in North America and Europe.

Businesses are feeling pressure to improve their handling of ESG data as requirements surrounding sustainability reporting become more stringent. Over 90% of respondents said they intended to increase their investments in ESG over the next three years, with specific focus on areas including hiring staff with a committed role (43%), specialized software (40%), and employee training (38%). But the use of spreadsheets suggests that there is a big disconnect between what businesses want to do and what they can actually accomplish.

Although 83% of respondents felt they were ahead of their peers in sustainability reporting, there appears to be a lack of readiness despite the widespread usage of manual processes. The aforementioned disparity highlights the necessity for more advanced data management solutions, a belief that is supported by 58% of participants who intend to utilize artificial intelligence and machine learning in the near future to improve data consolidation and analysis.

Tegan Keele, U.S. Climate Data & Technology Leader at KPMG, emphasized how artificial intelligence (AI) and machine learning can improve decision-making by providing richer insights from a variety of data sources. Keele did, however, provide a warning: an effective sustainability plan necessitates a coordinated approach guided by corporate objectives; technology cannot do this on its own.

The poll also clarified the wider effects of improving ESG competencies, such as improved alignment with company goals and heightened accountability in non-ESG roles. KPMG U.S. ESG Audit Leader Maura Hodge emphasized the significance of precise sustainability reporting for both long-term financial benefit and regulatory compliance.

Integrating sustainability initiatives into corporate operations is significantly hampered by issues like internal silos and a lack of resources. To better match with sustainability goals, more than 75% of companies plan to restructure their organizations. Therefore, investing strategically in people and technology is necessary to go forward.

KPMG U.S. ESG Leader Rob Fisher summarized the mood by emphasizing how important it is for businesses to get past a compliance-first mindset. A more unified and value-driven approach to corporate sustainability programs might result from seeing new reporting obligations as a chance to improve their sustainability strategy.