Insightsoftware, a provider of solutions for finance leaders, has unveiled its 2025 ESG Insights and Challenges Report, shedding light on the increasing challenges global organisations face in meeting environmental, social, and governance (ESG) reporting requirements. The report focuses on the complexities of gathering, integrating, and analysing data from multiple sources as regulatory demands tighten.
With the EU’s Corporate Sustainability Reporting Directive (CSRD) set to take effect in 2025, the report reveals that organisations are underprepared for compliance, with 52% relying on data from more than five sources for ESG reporting. This fragmented data landscape presents significant challenges for businesses striving to meet ESG goals and regulatory requirements.
The report revealed that 92% of organisations express concerns about their ESG reporting processes’ ability to scale with future regulatory demands. Data security and privacy are identified as key challenges by 59%, reflecting the sensitive nature of ESG data and heightened scrutiny.
While companies operating in the EU must comply with the CSRD, 52% of decision-makers admit to confusion about its requirements. Improving transparency and stakeholder engagement is identified as the primary goal of ESG reporting by 49% of respondents. Additionally, 86% value data visualisation and dashboards as essential features for effective ESG reporting.
Data collection is cited as the most significant hurdle, with 95% of decision-makers identifying it as a major challenge. Over half (52%) report spending more than four weeks annually on data collection alone, illustrating the time-intensive nature of ESG reporting.
The findings highlight the pressing need for organisations to address inefficiencies in their ESG reporting processes, particularly as regulatory requirements evolve.
The report emphasises the importance of leveraging technology to streamline ESG reporting, improve data accuracy, and reduce compliance risks. Enhancing data collection, transparency, and analysis is identified as a critical step to ensuring organisations meet both regulatory and stakeholder expectations.
“Without the proper tools, global businesses risk hampering their organisation’s ability to comply with ESG regulatory requirements,” said insightsoftware General Manager, EPM & Controllership, Monica Boydston.
The report was developed in collaboration with Hanover Research and includes a quantitative survey of 400 ESG decision-makers across France, Germany, Finland, Sweden, and the UK. Participants included professionals in accounting, finance, compliance, regulatory affairs, and sustainability roles from organisations with over 500 employees.
