REGULATIONS
Thus, tracking ESG performance is as important as financial data, resource management, and other analyses carried out on businesses to determine their strength. Indeed, research by McKinsey showed that effective ESG strategies can impact operating profits by as much as 60 %, through cost-cutting and driving efficiencies.
“ The EU Omnibus signals a reset of the sustainability reporting landscape”
The initial launch of the CSRD made businesses reflect on what data they were managing and consider how to fold ESG data into the mix. This included investment into management platforms, such as IFS’ s Sustainability Management module, to meet CSRD reporting standards.
Despite the regulatory changes, investments in technology to improve sustainability data are delivering proven business value. Technological advancements, particularly in AI and machine learning, have significantly streamlined ESG data reporting for companies. By automating manual, challenging processes around sustainability data collation, businesses
Sophie Graham, Chief Sustainability Officer, IFS
are able to repurpose Sustainability teams away from data-gathering and reporting towards strategy, using insights from this data. For example, targeting decarbonisation strategies towards the most carbon-intensive sites or suppliers.
New technologies automate the collection and analysis of vast amounts of data, reducing manual processes and minimising errors. AI can support decision-making with real-time sustainability data, pivoting the focus
88 May 2025