Introduction
As sustainability becomes a business imperative, many companies are scrambling to publish ESG reports that demonstrate their climate commitments. But in the rush to report, accuracy and strategy can fall through the cracks.
At Cyvra, we’ve reviewed hundreds of ESG disclosures—and we’ve seen the same issues pop up again and again. Here are five of the most common mistakes companies make in their sustainability reporting, and how to avoid them.
Reporting Without Reliable Data
- Using estimates, outdated numbers, or incomplete data sources.
- Inaccurate data leads to misleading reports, failed audits, and greenwashing claims.
- Automate data collection with verified sources and use audit-ready tools like Cyvra for full transparency.
Ignoring Scope 3 Emissions
- Only reporting direct (Scope 1) and energy-related (Scope 2) emissions, while neglecting upstream/downstream impacts.
- Scope 3 often makes up 70–90% of a company’s footprint—and stakeholders know it.
- Use integrated supply chain and procurement data to measure indirect emissions.
Strategies for Enhancing Data Quality
Implementing regular audits and utilizing automated data validation tools can significantly improve the accuracy of reported data. Organizations should also foster a culture of accountability among employees responsible for data entry.
Overcomplicating the Report
- Only reporting direct (Scope 1) and energy-related (Scope 2) emissions, while neglecting upstream/downstream impacts.
- Scope 3 often makes up 70–90% of a company’s footprint—and stakeholders know it.
- Use integrated supply chain and procurement data to measure indirect emissions.
Emerging Technologies in Data Management
Adopting blockchain technology and artificial intelligence can revolutionize data management processes. These tools enhance traceability, reduce errors, and streamline reporting, providing a competitive edge in ESG compliance.