Sustainability is driven by data. For companies to reduce their societal and environmental impacts effectively, robust data management is crucial. With accurate and trustworthy data, they can track carbon footprints, manage resources, and minimize waste. But collecting data is only half the battle—analyzing it uncovers the insights needed to target initiatives that drive real, measurable results. Otherwise, it’s just all guesswork.
Businesses need to collect a wide array of different metrics including carbon emissions, energy consumption, water usage, waste production and even address human rights issues. Gathering and amalgamating all this data in a timely and accurate manner is not just key to regulatory compliance, but also to gaining green certification, marketing to eco-conscious consumers and innovation to improve brand credibility. However, many companies are still struggling to implement an effective and comprehensive approach, as sustainability data management remains a nascent business practice.
Inefficient practices
Existing processes for managing sustainability data are plagued by inefficiency. Too many companies still rely on collecting all the datasets manually via spreadsheets, surveys and emails. These outdated approaches are not only time-consuming but also impractical, especially for businesses without dedicated sustainability managers. As a result, the task often falls to HR, operations, or communications teams, diverting them from their core responsibilities and slowing down meaningful progress. This patchwork process ultimately holds businesses back, preventing them from achieving the efficiency and accuracy needed to make real impactful change.
By its very nature, this approach is also prone to errors, which undermines both the business’s capacity to fully comply with legislation but also weakens trust in the authenticity of sustainability claims. Moreover, it keeps data in siloes, with valuable information scattered across various stakeholders’ inboxes. There isn’t a ready means of merging and cross-referencing it all, making it nearly impossible to form a comprehensive overview, identify critical insights, or address existing gaps
Financially, these complex, fragmented and labor-intensive methods just aren’t viable. For example, in the travel and hospitality sector, hotels annually spend $8 billion on these outdated processes. Despite this investment, they remain ineffective. Altogether, ineffective sustainability management costs the hotel industry $21 billion each year.
Tech innovation
Digitalization is paving the way forward, leading to a new wave of tech startups that provide innovative solutions for sustainability data management. These technologies, powered by data analytics and AI, streamline the collection and analysis of information from diverse sources, driving more effective outcomes. Some are sector-agnostic and primarily focused on ESG reporting, but others are tailored to specific sectors and come with bespoke benefits.
Take the travel and hospitality sector for example.Advanced AI-driven frameworks like those developed by companies like BeCause, are transforming how sustainability data is managed. These solutions not only replace outdated manual processes and disconnected systems but also act as centralized hubs for data flow. By facilitating seamless data exchange among tourism providers, distributors, and certification entities, these platforms ensure accurate and reliable data sharing across thousands of hotels and online travel agencies. They not only collect and process key metrics but also organize them for different stakeholders, all while ensuring compliance with evolving regulations.
Regulatorycompliance
Forward-thinking businesses are embracing the latest tech solutions as ESG reporting becomes integral to company operations. We are currently witnessing a global shift in sustainability legislation to reshape corporate behavior, which was instigated by the European Union’s 2023 Corporate Sustainability Reporting Directive and subsequently followed by the United States Securities and Exchange Commission’s ruling in favor of climate change reporting regulations for publicly listed companies. New Zealand, Australia and Canada all have similar reporting rules, either on the horizon or approved. In April 2024, China issued new guidelines on ESG reporting that are largely aligned with international standards. Meanwhile, South Africa is ushering in a new era of ESG reporting in Africa.
In this new landscape, the optimization of sustainability data management through digital tech can free staff from gathering data from a plethora of sources and trying to merge it together. Instead, they can focus on using tech-accrued data and insights to create effective sustainability initiatives. It’s how businesses can move from simply making promises and setting targets in terms of reducing their impact on society and the environment to the real-world action that’s so urgently needed.
Commercial edge
Embracing ESG reporting not only keeps companies ahead of regulatory requirements but also drives growth, transparency, and trust. With eco-conscious and socially aware consumers on the rise, integrating sustainability into brand identity is becoming a powerful financial advantage.
When it comes to decarbonization, the World Economic Forum projects that the climate solutions supply chain could add $5-11 trillion in additional investment value by 2030. Its research also shows that the adoption of nature-positive strategies could create new business opportunities valued globally at $10.1 trillion and 395 million jobs in the same timeframe. Meantime, in the travel and hospitality sector alone, global demand for sustainable tourism is set to grow by 23.8% annually through 2034, reaching a staggering $12.8 trillion.
C-suite leaders are increasingly recognizing this commercial opportunity. That’s why 85% of them have increased their sustainability investments and 70% expect climate change to significantly impact their strategies and operations over the next three years, according to research from Deloitte.
A greener and fairer future
Data is the foundation of the sustainability revolution. To comply with sustainability legislation and capitalize on commercial opportunities, companies must effectively collect, analyze, and communicate their impact on both people and the planet. Forward-thinking organizations are already leveraging new digital solutions that move beyond data accumulation to strategic analysis. This approach not only accelerates meaningful business transformation but also helps pave the way for a more sustainable future for everyone.