Time to Shift Gears – From Compliance to Competitive Edge
Business leaders must act decisively to leverage sustainability data or risk falling behind competitors.
The first CSRD reporting wave is complete. However, sustainability data should not be viewed merely as a compliance requirement; it is a strategic asset that can enhance performance, reduce costs, and generate long-term value.
The time for mere compliance is over.
Sustainability Data as a Strategic Asset Hidden in Plain Sight
Our studies and experience show that companies that systematically integrate sustainability data into decision-making are more likely to create or protect value.
Rather than fragmented efforts, where reporting teams work manually across systems and silos, leading organizations are building robust, automated, and repeatable sustainability data processes.
When sustainability data is integrated with financial and operational metrics, it provides a comprehensive view that enables cost savings, enhances resilience, improves risk management, and fosters innovation.
This change allows companies to move beyond reactive reporting and enhance decision making.
- By analyzing its sustainability data, a manufacturing company can, for example, reduce transport emissions by switching to regional suppliers. This reduces CO₂ emissions, lowers costs, and reduces time to customer.
- The analysis of energy and material consumption, waste, and emissions data reveals inefficiencies and helps optimize resources.
- Sustainability data functions as an early warning system for a range of risks, from reputational damage to supply chain disruptions, enabling proactive mitigation strategies.
- Addressing sustainability issues promotes innovation and leads to new products and services.
- Transparent sustainability reporting strengthens stakeholder trust.
- Investors are increasingly taking sustainability criteria into account, which may offer access to new capital sources.
KPMG Professional's Perspective: Turning Regulation into Business Results
KPMG professionals are convinced that the strategic use of sustainability data is a key competitiveness factor, allowing better articulation of the value of sustainability. Companies must incorporate sustainability data in their corporate governance and strategic decision-making to be sustainable and profitable.
Technology is essential. Modern IT solutions enable efficient processing and analysis of large sustainability data volumes, ensuring accuracy, traceability, and control throughout the reporting lifecycle. KPMG sustainability professionals support companies in this transformation, from the development of a sustainability strategy to the implementation of processes and continuous improvement. Our goal is to enable companies to use sustainability data to meet compliance requirements and to be a strategic compass that results in value preservation and creation in the long term. Those that act now will gain an advantage.
Actions for Business Leaders
Business leaders should act now.
- Evaluate how each individual sustainability initiative impacts your brand reputation, addresses compliance requirements, mitigates risk, or provides a strategic opportunity for value creation and articulate it internally and externally.
- Defining measurable, time-bound targets aligned with these business objectives.
- Invest in technology and create the IT infrastructure for efficient and well-governed sustainability data management that is interoperable for all reporting requirements
- Communicate transparently and report openly on your sustainability performance.
The future belongs to companies that treat sustainability data as a strategic opportunity, not a burden.
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