IRIS REGTECH
AI
Effective implementation of these tools can position ESG teams at the centre of the organisation, providing data-driven credibility across all departments, the ability to influence major capital decisions, and the capacity to inform board-level strategy.
The compliance trap Most ESG systems were designed for external rating agencies, so the data collected primarily meets external criteria, limiting the scope for impact.
“ When ESG data requirements came out, they came out because of rating agencies and regulatory frameworks and it was always outside the organisation that demanded certain data points,” says Farzad.“ And then internally, what happened was data systems were designed to cater to those requirements.”
Farzad explains, however, that ESG data requirements cannot provide strategic guidance for internal decision-making.
“ If you look at an organisation internally, you look at someone from the operations perspective; for example, all they want to know is which facilities contribute the most emissions.
“ One of the biggest challenges on ESG is that it has always been a data collection piece”
Farzad Wadia ESG Lead IRIS RegTech Solutions
IRIS REGTECH
HEADQUARTERS: MUMBAI, INDIA NUMBER OF EMPLOYEES: 500 MARKET CAP: US $ 70M
“ Someone in procurement wants to know sustainability risks in the supply chain. The CFO wants to know financial implications. These aren’ t metrics you typically report to a rating agency or to frameworks. So there is a slight disconnect.”
Spreadsheet breaking point Many businesses continue to track ESG metrics using Microsoft Excel or similar software because of its familiarity, according to Farzad. However, spreadsheets are inadequate for rigorous external audits due to limited audit trails and the volume of data.
“ Most people in the ESG side absolutely love Excel and it’ s only as the environment matures and you start getting external pressure – for instance when the rating agencies start asking you a deeper round of questions or say that your ESG report goes through assurance – that you realise Excel is breaking.
“ Because you don’ t have an audit trail, you don’ t know where the numbers come from, you don’ t know who’ s edited what. It is scalable up to a point and then it kind of snaps, unfortunately.”
128 July 2026