Unlocking the strategic and commercial value of climate reporting

Climate reporting is not just a “nice-to-have” document at the end of the year. Stakeholder expectations are rising, and the gap between ambition and reality is getting easier to spot.

In our recent webinar session, I was joined by Ata Bærentsen (Partner at SustainX) and Molly Baxter (Carbon Consultant at Zevero) to unpack what is driving Environmental, Social and Governance (ESG) reporting today, how priorities are evolving, and what it takes to turn reporting into action inside your organisation. Here’s what we uncovered.

What is changing in ESG reporting

1) The move from ambition to credibility

A recurring theme in our discussion was the shift from high-level targets to proving what is actually happening. Many companies have bold commitments. The hard part is showing the plan, the progress, and what it takes to reduce emissions in practice. This means transparency even if—or especially if—progress is not linear.

2) Scrutiny is increasing

We are seeing growing media attention on ESG reports. Journalists (and the public) are getting better at reading disclosures and calling out inconsistencies. One example we discussed was a major Danish company being in the press as emissions continued to grow alongside business growth, even while reduction ambitions stayed high. Proactively addressing these pitfalls and plan to course-correct, backed by trustworthy data, can turn this reputation risk into a cause of credibility.

3) Pressure is coming from multiple directions

Regulation is a clear driver, still including the Corporate Sustainability Reporting Directive (CSRD). But, it’s not only regulators. We also see increasing pressure from customers and supply chains, including suppliers being asked to engage through Science Based Targets initiative (SBTi) expectations.

The role of data and tools

If credibility is the destination, data is the route.

Across organisations, ESG data is often spread across teams, systems, and spreadsheets. Ownership is unclear. Definitions drift. And when reporting deadlines approach, the work becomes a scramble.

A simple idea came through strongly: good reporting does not start in the report. It starts with structured, centralised data that is built for repeatable tracking and decision making.

That matters for three reasons:

• it helps you see where emissions sit across your value chain, including Scope 1, Scope 2 and Scope 3 emissions,
• it makes it easier to explain your numbers internally and build confidence in the strategic direction of climate plans, as well as the story you are telling,
• & it reduces the risk of errors and contradictions that can undermine trust.

Where carbon removal fits

Carbon Dioxide Removal (CDR) is becoming a bigger part of climate strategies. Many companies start with nature-based approaches and move towards more permanent carbon removal as they get closer to their net zero years.

But for many sustainability teams, carbon removal is only one part of a much wider plan. Tracking purchases and reporting on them can be complicated, and it can feel like a low reward, high risk activity if the data is not organised.

That is where structure matters most. To report on carbon removal responsibly, you need:

• clear records of what was purchased, when, and why
• consistent documentation you can use in disclosures
• a way to connect carbon removal to your wider decarbonisation journey, without overstating what it does

Without that support, the same action can start to feel risky in terms of greenwashing, or simply hard to explain.

What to do next

If you are trying to turn ESG reporting into something that actually drives progress, start here:

• be clear on what you are reporting for, and who needs to trust it
• agree definitions early, especially for emissions scopes and what sits inside your reporting boundary
• assign data ownership, and build a central place to track progress rather than a last-minute spreadsheet exercise
• treat carbon removal reporting as part of the wider ESG picture, with the same discipline on data, documentation and communication

Reporting is becoming a test of credibility. The organisations that do well will be the ones that make the data usable, the story honest, and the actions measurable.

If you want to listen back to the discussion access the webinar recording here.