Why data matters more than ever
Sustainability is no longer optional—it’s essential. Businesses today are navigating an era of heightened expectations from stakeholders, stringent regulations like the Corporate Sustainability Reporting Directive (CSRD), and the need to transform for a low-carbon economy. Efficient data management lies at the heart of this transformation.
Sweep’s Sustainability in Action report highlights the key roles data plays in sustainability efforts, including:
- Driving compliance with regulatory standards, cited by 62% of businesses.
- Supporting emissions tracking (61%) and operational optimization (60%).
- Enabling strategic initiatives like net-zero planning and supplier emissions tracking.
However, managing sustainability data isn’t without its challenges. Nearly half of sustainability managers (47%) report frustration with data complexity, and 53% feel their data is not comprehensive enough to inform strategic decisions. For many, the sheer volume of data sources—44% manage ten or more—adds further strain.
The risks of inadequate data management
Failing to address these challenges carries significant risks:
- Compliance penalties: Falling short of regulations like the CSRD can result in fines of up to 10 million euros or 5% of annual revenue, along with reputational damage.
- Operational inefficiency: Inconsistent or incomplete data hampers decision-making and slows progress toward sustainability goals.
- Lost opportunities: Poor data management may prevent businesses from demonstrating climate action to investors, partners, or consumers, potentially losing contracts or market share.
A dedicated sustainability data management platform is designed to solve these challenges and unlock new opportunities:
- Streamlined data processes: Centralize and simplify data collection, integration, and reporting.
- Enhanced decision-making: Access accurate, real-time data to inform sustainability strategies.
- Regulatory compliance: Automate reporting to meet evolving standards efficiently and accurately.
By investing in the right platform, businesses can transform sustainability data from a burden into a strategic asset. Leaders who embrace data-driven sustainability initiatives position their companies to thrive in the transition to a low-carbon economy.