Master ESG Reporting: Reduce Time by 50% and Gain a Competitive Edge

February 11, 2025

Growing regulatory pressure and increasing expectations from investors and customers are placing ever-greater demands on companies regarding ESG (Environmental, Social, Governance). The European Corporate Sustainability Reporting Directive (CSRD) introduces new obligations that will affect thousands of companies across industries. ESG reporting is rapidly becoming an essential part of corporate strategic management.

We have prepared an overview of what the legislation requires, the most common challenges in ESG reporting, and, most importantly, how automation and digitalization can help you not only meet regulatory requirements but also gain a strategic advantage.

1. ESG Reporting Obligations and Legislation

Who Needs to Report?

The ESG reporting obligation applies to:

• Companies with more than 250 employees, revenue exceeding 40 million euros, or assets over 20 million euros.
• From 2025, the obligation will extend to thousands of additional companies, with regulations becoming increasingly stringent.

What Needs to Be Reported?

Companies must report data in three key categories:

• Environmental factors: CO₂ emissions, energy consumption, water usage, waste management.
• Social factors: Diversity, working conditions, human rights protection, pay equity.
• Governance factors: Anti-corruption measures, risk management, transparency.

The Importance of the Supply Chain

Starting in 2028, companies will be responsible for ESG data across their entire supply chain. This presents a significant challenge, as obtaining data from third parties is often complex and time-consuming.

Audits and Penalties

ESG reports will be subject to audits, and non-compliance may lead to substantial fines—often higher than those for GDPR violations. A unified European registry of ESG reports is also expected, requiring companies to provide verifiable historical data.

Companies must not only collect this data but also ensure its consistency, accuracy, and auditability. ESG reporting is not a one-time task—it is an ongoing process that will evolve alongside regulatory requirements. Additionally, companies must consider long-term goals, such as achieving carbon neutrality by 2050.

ESG Reporting by Adastra

We help you identify relevant data for your company and set up an infrastructure that ensures your reports fully comply with regulations.

2. Key ESG Reporting Challenges

Lack of Tools and Processes

Most companies do not have established data platforms for ESG reporting and still rely on manual processes, such as Excel, which are inefficient and prone to errors when handling large volumes of data.

Data Collection and Quality Issues

• Companies often don’t know where their ESG data is stored or lack standardized formats.
• The supply chain is a major challenge—obtaining data from suppliers requires time and resources.
• There are no unified ESG KPI standards across industries, making it difficult to determine what data to collect and how to interpret it.

Manual Work

Manual data collection leads to high error rates. Instead of analyzing and improving processes, companies spend most of their time verifying and consolidating data.

Lack of ESG Expertise

• Many companies are unsure where to start, what data to track, and how to report it correctly.
• There is no clear strategy on how to adapt to future ESG requirements, such as decarbonization.

Where Can ESG Data Be Found?

One of the biggest challenges is locating ESG data, which is often scattered across various internal and external sources:

• Internal sources: ERP systems, HR platforms, production management systems, energy management.
• External sources: Suppliers, investors, public databases.

The problem is that companies often lack centralized or standardized ESG data, leading to errors and delays in report preparation. Our solution helps you not only locate but also consolidate, validate, and automatically update this data in a single location.

Case Study

For one project, we helped a client identify and consolidate data on fleet emissions. The automated process revealed that part of the energy consumption was incorrectly attributed to other activities, leading to inefficient reporting.

How Can We Obtain ESG Data from Our Suppliers?

Collecting data from the supply chain is one of the most challenging aspects of ESG reporting. We assist by:

• Establishing processes for collecting and managing supplier data.
• Automating communication and data validation.
• Ensuring transparency and auditability.

Case Study

For one client, we developed an automated system that enabled data collection from hundreds of suppliers in just a few days—something that would have taken weeks manually.

3. The Role of Automation and Digitalization

Why Digitalize ESG Reporting?

Automation and digitalization provide tangible benefits:

• Eliminating manual errors: Automated data collection improves accuracy and reliability.
• Saving time: Companies can focus on analysis and strategic decision-making instead of manual data entry.
• Clear reporting: ESG software allows real-time tracking of KPIs and ensures compliance with regulations.

How Does It Work?

• Integration with internal systems: Connecting ESG reporting to ERP, HR, energy management, and other data sources.
• Automated supplier data collection: Streamlining the acquisition and validation of ESG data from suppliers.
• Creating a “single source of truth”: Centralizing ESG data to ensure consistency and auditability.

Case Studies

• Automating energy and fleet data collection reduced monthly workload by dozens of hours.
• For companies with thousands of suppliers, we facilitate strategic ESG data collection and validation.
• Digitalizing reporting reduced administrative effort and allowed businesses to reallocate resources.

4. ROI of ESG Software Investment

Expected Benefits

• Lower manual labour costs: Automation saves time and reduces errors.
• Faster data processing: Tasks that previously took weeks can now be completed in days.
• Better access to financing: A higher ESG rating attracts investors and improves loan conditions.
• Cost optimization: ESG data helps identify opportunities to cut operational expenses, such as in energy use or logistics.

Why Act Now?

• The transition period is short, and ESG data requirements will only increase. Companies that delay will face high adaptation costs.
• ESG is a long-term commitment. Every year without digitalization increases the cost of manual reporting.

5. How to Leverage ESG Data Strategically

ESG reporting is not just about compliance. Properly utilized ESG data can help you:

• Identify cost-saving opportunities, such as reducing energy consumption or optimizing logistics.
• Improve financing conditions, as higher ESG ratings lead to better capital access.
• Strengthen market position, as more customers and investors consider ESG factors in decision-making.

Case Study

For one project, we discovered that most emissions came from freight transport. By optimizing logistics, the client not only reduced emissions but also cut operational costs.

6. How Adastra Supports Clients

Comprehensive End-to-End Approach

• We assist at every stage of ESG implementation—from strategy and data collection to digitalization and automation.
• Our solutions include both consulting and ESG platform implementation.

Flexible Solutions

• We work with tools such as Microsoft Sustainability Manager or develop custom solutions tailored to specific client needs.

Specific Services We Provide

• Strategy analysis and planning: Identifying ESG priorities and long-term decarbonization strategies.
• ESG data platform implementation: Automating data collection and creating clear dashboards and reports.
• Supplier data management: Setting up processes to obtain and validate ESG data from supply chains.
• Education and training: Workshops for teams responsible for ESG initiatives.

7. Why Companies Choose Adastra

• Expertise: We have delivered data projects for most of the top 100 companies in the Czech market.
• Know-how: We understand both technology and ESG regulations, allowing us to deliver real value.
• Practical approach: Our solutions not only ensure compliance but also create business value, such as cost savings and process improvements.