Beyond ESG data – The future of sustainable reporting

The evolution of ESG investing has placed increasing pressure on asset managers to enhance transparency, ensure accuracy, and improve the way they communicate sustainability efforts. While most firms focus on refining the content of ESG reports, far fewer consider the efficiency, scalability, and sustainability of the reporting process itself. However, the future of ESG factsheets is not only about what is reported but also about how asset managers create, manage, and distribute these critical documents. 

With regulatory requirements becoming more stringent and investors expecting faster access to high-quality ESG information, firms need to modernise their approach to ESG reporting. The question is no longer just about whether the data is accurate, but also about how effectively and sustainably it is presented. 

Why ESG reporting needs to evolve 

Traditionally, ESG factsheets have been assembled through time-consuming manual processes, requiring teams to collect data from multiple sources, structure reports, and ensure compliance with an array of global regulations. This outdated approach is not only inefficient but also creates room for inconsistencies and human error. 

In today’s fast-paced environment, where ESG-related risks and opportunities change rapidly, asset managers must be able to adapt swiftly. Investors no longer want static reports that offer outdated insights but, they demand real-time, data-driven factsheets that reflect the most current ESG performance of their investments. Furthermore, with regulations such as the SFDR and TCFD driving new reporting obligations, the ability to efficiently update and distribute ESG factsheets at scale is becoming a competitive necessity rather than a mere compliance task. 

The shift towards automation and integration 

A future-proof ESG reporting strategy must embrace technological innovation. Automation and integration provide asset managers with a range of benefits, including: 

• Reducing administrative burden – Freeing up valuable internal resources by eliminating repetitive manual processes and allowing teams to focus on strategic decision-making rather than document creation. 
• Improving accuracy and reliability – Minimising human errors by centralising ESG data and ensuring consistency across all investor communications. 
• Enhancing scalability – Empowering firms to meet evolving regulatory requirements and increasing investor demands without significantly expanding operational costs. 

By incorporating automation into ESG reporting workflows, asset managers can transform ESG factsheets from static, compliance-driven documents into dynamic, investor-friendly resources. This not only enhances internal efficiency but also improves the way firms communicate their ESG strategies to stakeholders. 

Aligning ESG reporting with sustainability goals 

Another often-overlooked aspect of ESG reporting is whether the reporting process itself aligns with sustainability principles. If asset managers are serious about ESG commitments, they must ensure that their reporting methods reflect the values they promote. 

Key considerations include: 

• Digital-first ESG reporting – Transitioning from paper-based reports to digital formats that minimise environmental impact and enhance accessibility. 
• Efficient data management – Leveraging centralised ESG data platforms to ensure seamless integration between factsheets, investor portals, and regulatory submissions. 
• Proactive regulatory readiness – Adopting flexible reporting systems that can quickly adapt to new ESG disclosure frameworks, reducing the risk of non-compliance. 

At FE fundinfo, we support asset managers in streamlining ESG reporting processes by providing technology-driven solutions that not only enhance efficiency but also reinforce the sustainability principles that ESG reporting is meant to uphold. 

Want to learn more about how to elevate your ESG factsheets? Download our whitepaper below or get in touch with us today.