In 2025, ESG data collection is evolving from a compliance necessity to a strategic imperative.
Sustainability performance is now recognized as a key indicator of business health and long-term success, shaping the decision-making factors that have lasting impacts on a company's future.
As regulatory frameworks tighten, investors are demanding deeper transparency. Luckily, advancements in reporting tools and management software are making sustainability reporting more seamless and transparent than ever.
Beyond compliance, ESG data collection plays a crucial role in corporate resilience, risk mitigation, and competitive positioning. Companies that prioritize sustainability data management are not only meeting regulatory requirements with ease, but they’re unlocking new opportunities for efficiency, stakeholder engagement, and long-term growth.
This guide will explore the best practices for ESG data collection, the key metrics organizations should track, and the essential tools for sustainability reporting.
What is ESG data collection?
ESG data collection refers to the systematic gathering, monitoring, and reporting of ESG — environmental, social, and governance — performance indicators. Organizations rely on ESG data to meet regulatory standards, fulfill investor requirements, and track sustainability goals.
Common ESG reporting frameworks include:
- Corporate Sustainability Reporting Directive (CSRD)
- Carbon Disclosure Project (CDP)
- Global Reporting Initiative (GRI)
- International Financial Reporting Standards (IFRS) (S1 & S2)
- ESG Data Convergence Initiative (EDCI)
- Sustainable Finance Disclosure Regulation (SFDR)
There are also a handful of both mandatory and voluntary frameworks that companies are either required or encouraged to disclose to, each with their own unique reporting requirements. Some of the key frameworks include:
Mandatory frameworks:
Corporate Sustainability Reporting Directive (CSRD)
Beginning this year, CSRD applies to large and listed companies in the EU, requiring detailed ESG disclosures aligned with the European Sustainability Reporting Standards (ESRS). The CSRD requires 12 reporting standards, 86 disclosure requirements, over 100 KPIs, and more than 1,000 data points.
Securities and Exchange Commission (SEC) Climate Disclosure Rule
Though not yet a mandatory disclosure, it’s expected to mandate climate-related disclosures for public companies in the U.S. sometime this year.
Australian Sustainability Reporting Standards
These guidelines mandate ESG disclosures and emphasize climate-related financial reporting to ensure transparency and alignment with global standards.
Sustainable Finance Disclosure Regulation (SFDR)
Requires financial market participants in the EU to disclose sustainability risks and impacts.
International Financial Reporting Standards (IFRS)
Sets a standard of accounting guidelines for public companies to following when preparing financial statements, creating transparency and consistency.
Voluntary frameworks:
Global Reporting Initiative (GRI)
One of the most widely used sustainability reporting standards, providing guidelines for ESG disclosures.
Carbon Disclosure Project (CDP)
Encourages companies to disclose environmental impact data, including carbon emissions.
International Sustainability Standards Board (ISSB)
Developing a global baseline for sustainability disclosures to align ESG reporting practices.
These frameworks help organizations align their ESG reporting with investor and regulatory expectations, improve transparency, and drive sustainability initiatives.
Why ESG data collection matters
Beyond mandatory ESG reporting—which can lead to fines if ignored—data collection drives smarter decision-making.
It helps companies improve performance, cut emissions, and strengthen sustainability commitments.
By identifying inefficiencies in reporting workflows, businesses can streamline processes with faster, more efficient management platforms.
Regulatory compliance and risk management
Governments and industry regulators are mandating stricter ESG disclosures. Proper ESG data management reduces the risk of non-compliance penalties.
Investor and stakeholder expectations
Investors and financial institutions prioritize companies with strong ESG performance. Accurate ESG reporting increases transparency and builds trust with stakeholders.
Improved brand perception and relative sales growth
In a joint study from McKinsey and NielsenIQ, 78% of customers look at sustainability while making purchase decisions, while 60% are open to paying more for products from brands that place an increased emphasis on sustainability.
For companies, making an upfront investment in better ESG data collection and management practices may result in more revenue down the line.
Operational efficiency and competitive advantage
A well-structured sustainability data management system helps identify cost-saving opportunities, optimize energy consumption, and drive long-term profitability.
💡 What does this look like in practice? One of our customers has transformed their data collection process with automated workflows spanning nearly 400 retail locations, 20 offices, and 12 manufacturing sites around the world. With data collection automated and streamlined, this customer has been able to focus on sustainability strategy and goals by leveraging Pulsora’s analytics dashboards.
Key ESG metrics to track
To effectively manage ESG initiatives, organizations should focus on tracking the following key metrics and KPIs:
Environmental metrics
The revised list is much stronger because it specifies measurable, quantitative ESG metrics rather than broad categories. However, I’d refine it further to ensure clarity, alignment with global standards (e.g., GRI, ISSB, TCFD, and SASB), and completeness. Here’s an improved version:
- Total scope 1, 2, and 3 of GHG emissions (includes direct, indirect, and value chain emissions)
- GHG intensity
- Carbon offsets and reductions
- Total energy consumption
- Percentage of energy derived from renewable sources
- Operational footprint in biodiversity-sensitive areas
- Deforestation impact
Social metrics
- Workforce diversity & inclusion
- Employee health & safety records
- Labor practices & human rights compliance
- Community engagement initiatives
Governance metrics
- Board diversity & executive compensation
- Anti-corruption & ethical business practices
- Data privacy & cybersecurity measures
- Shareholder rights & governance structures
The risks of poor ESG data collection
Failing to implement a robust ESG data strategy can lead to compliance violations and financial penalties, reputational damage, lost investor confidence, and missed opportunities for sustainability-driven innovation.
Essential features needed in ESG data collection software
Selecting the right ESG data collection software is critical for ensuring accuracy, efficiency, and compliance with evolving sustainability regulations. The best platforms offer features that streamline reporting, enhance data integrity, and support decision-making while allowing you to leave behind endless spreadsheets and poor data quality. Below are just a handful of the features you’ll want to consider when shopping for software solutions:
1. Automated data collection
- Enables continuous tracking of sustainability metrics, reducing reliance on outdated or manual reporting methods.
- Provides instant insights to quickly identify and address ESG performance gaps.
2. AI-powered analytics & predictive insights
- Uses machine learning to identify ESG risks, forecast sustainability trends, and optimize resource use.
- Helps companies proactively address ESG challenges before they become material risks.
3. Seamless API Integrations
- Connects with enterprise resource planning (ERP) systems, HR platforms, and financial reporting tools.
- Ensures smooth data flow between internal and external reporting systems, reducing manual input and errors.
4. Multi-source data import and aggregation
- Supports integration with or has proprietary carbon accounting tools, and third-party ESG rating agencies.
- Automates consolidation from various data sources and business units, improving accuracy and reducing redundancy.
5. Compliance with all major ESG frameworks
- Aligns with reporting standards like CSRD, CDP, GRI, IFRS, and EDCI.
- Provides built-in templates and automated compliance checks to ensure regulatory adherence.
6. Pre-built reporting templates & custom report generation
- Offers ready-made templates tailored to different ESG disclosure requirements.
- Enables users to create customized reports for investors, regulatory bodies, and internal stakeholders.
7. Audit-ready data and version control
- Maintains a clear data audit trail to support compliance and third-party verification.
- Tracks data modifications, ensuring transparency and accountability in reporting.
By choosing ESG reporting software that highlights data collection features, organizations can enhance data accuracy, improve reporting efficiency, and drive meaningful sustainability initiatives that align with business strategy and regulatory requirements.
Once you have the right sustainability management solution in place for your data, you can begin to implement the best practices for collection, management, and optimization of said data.
Best practices for ESG data collection & management
1. Establish a clear ESG data strategy
Start by defining ESG goals, ensuring they’re, first and foremost, aligned with corporate objectives., Then, conduct a materiality assessment to identify priority ESG issues you can tackle in specific quarters or halves of the fiscal year.
2. Implement ESG data collection software
Automate data tracking to improve efficiency and accuracy, ensuring the software integration will work with existing enterprise systems.
3. Maintain data accuracy & consistency
Standardize ESG data collection methodologies. You can achieve this by using third-party audits and verification processes.
4. Streamline reporting with sustainability data management tools
Leverage AI and analytics for ESG performance tracking to automate regulatory compliance reporting.
5. Involve cross-functional teams
Engage finance, operations, and sustainability teams in ESG initiatives from the beginning. More importantly, secure executive buy-in to drive ESG strategy forward, highlighting the impact ESG data collection can have across the entire organization.
6. Continuously monitor and improve ESG data collection
Regularly benchmark ESG performance against industry peers. This is the best way to know where you stand. Internally, utilize predictive analytics for sustainability improvements that can help you meet KPIs you’ve set.
7. Analytics and insights
Regularly benchmark ESG performance against industry peers. This is the best way to know where you stand. Internally, utilize predictive analytics for sustainability improvements that can help you meet KPIs you’ve set.
How Pulsora gets ESG data collection right
Start with key metrics
Identify the most relevant sustainability metrics from frameworks like CSRD, CDP, and GRI, or define your own. These may evolve based on business needs, regulations, or customer demands.
For Pulsora customers: Businesses start with industry frameworks or custom reporting formats, selecting metrics based on their verticals, geographies, and materiality.
Centralize data with a master repository
Pulsora’s configurable data catalogs serve as central repositories, allowing customers to collect and organize data for multiple sustainability reports, including CDP, GRI, CSRD, and annual ESG disclosures.
Example: One EU customer uses Pulsora to generate CDP and DJSI reports while preparing for CSRD compliance.
Create a comprehensive value chain of data collection
Once a flexible catalog is defined, data collection can be manual, automated through integrations, uploaded via files, or gathered via workflow-driven requests across the value chain.
Example: A customer automated data collection across 400 retail locations, 20 offices, and 12 manufacturing sites—freeing up time for sustainability strategy.
Opt for real-time monitoring and automated reminders
Track requests in real-time and automate reminders to keep teams aligned during ESG reporting cycles.
Example: A global customer uses custom reminders to manage data submissions across its value chain, ensuring deadlines aren’t missed.
Collaborate seamlessly with stakeholders
Facilitate data sharing, approvals, and revisions with multi-level workflows.
Example: Private equity firms use Pulsora to collect data from portfolio companies, compare trends, request revisions, and report to LPs with accuracy.
Get audit-grade data transparency
Every data point in Pulsora includes an audit trail, tracking updates and user changes with supporting evidence files.
Example: A global private equity firm granted its auditing partner direct Pulsora access, streamlining verification with full data visibility.
Access analytics and insights for ESG strategy
Dashboards provide real-time analytics, trend analysis, benchmarking, and forecasting.
Example: A customer used Pulsora Analytics to showcase responsible raw material sourcing, transforming their traceability strategy.
Pulsora: A comprehensive sustainability data management solution
Achieve your sustainability goals effortlessly with Pulsora’s flexible, comprehensive, and auditable platform that’s built for comprehensive data collection. Our customers don't just meet reporting requirements — they excel, saving time so they can focus on what truly matters.
Is collecting sustainability data a challenge for your team? Book a personalized demo.
