In recent years, properly measuring and communicating one's ESG performance has become a competitive lever for companies. However, while the adoption of sustainability-related practices is becoming more common among companies, measurement and governance issues still pose major challenges for many organizations, especially SMEs.
For this reason, more and more companies are opting for ESG solutions to manage and report on corporate sustainability actions and performances. The choice of solution is crucial, as there is no value in measuring and reporting on ESG-related aspects if it is not done based on reliable data that refers to recognized and shared standards.
Sustainability management, the big challenges: identify and track many different, yet crucial, KPIs
ESG criteria provide organizations with strategic information to adopt ESG solutions. In fact, ESG data and reporting allow for a classification of a company not only based on financial results, but also on many non-financial factors that are equally important to assess the sustainability of the business model over time. However, several levels of complexity are embedded in this analysis. A first complexity is related precisely to the diverse nature of the parameters to be monitored (Environmental, Social and governance criteria).
Another level of complexity, associated with this analysis, concerns the availability and quality of data, which must be accurate, up-to-date and consistent with an international regulatory framework.
In this context, the integration of emerging technologies such as artificial intelligence (AI) and big data analytics is proving to be transformative.
AI-powered ESG platforms can aggregate, verify and interpret vast quantities of structured and unstructured data, ensuring transparency and comparability. This is reshaping sustainable investing and reporting practices by enabling real-time monitoring and predictive analytics.
According to the article “The Rise of ESG Data Science” on Medium, ESG data science is now central to identifying patterns, flagging risks, and uncovering opportunities that would otherwise remain hidden using traditional methods.
ESG solutions, the importance of adopting shared standards
In response to these challenges, more companies are adopting ESG solutions, digital platforms that help them assess their performance against ESG criteria.
However, when choosing these solutions as well, there are several considerations to be made. First, it is necessary to rely on solutions that can guarantee high data availability and reliability, to be compliant with internationally recognized standards, such as:
- United Nations’ 2030 Agenda, with its 17 Sustainable Development Goals (SDGs);
- UN Global Compact;
- EU Taxonomy;
- GRI Standards.
This standardized approach, while important, must be combined with one that is more focused on the specific company. It is in fact necessary to consider both the characteristics of the industry in which the company operates and the regulatory obligations of the country where the company is located.
Moreover, the financial implications of ESG performance are becoming increasingly evident.
As highlighted by Thomson Reuters in their 2025 ESG predictions, organizations with mature ESG strategies are expected to experience better capital access, reduced risk exposure, and greater investor confidence. Regulatory alignment and credible data assurance will be essential in consolidating these advantages.
Beyond the technology: How to choose the right partner for an ESG solution
Choosing an ESG solution based on these standards is undoubtedly an excellent starting point for improving the management of one's sustainability actions. However, the factors most strictly related to technology are not the only ones to take into consideration when choosing the right technological partner.
Analyzing an organization's ESG performance is indeed a complex path that, especially for SMEs, can often be a major challenge. However, this is a path that is becoming increasingly important, even for smaller entities. In fact, with the approval of the Corporate Sustainability Reporting Directive (CSRD), the pool of companies that are required to publish a sustainability report has been expanded to include not only large companies (public and private) but also SMEs listed on the stock exchange of an EU Member State.
Even for non-public SMEs, it may also be necessary to obtain a certificate of their ESG performance, both to access projects and funding opportunities and to be included in the supply chain of organizations that must ensure excellent sustainability performance of their suppliers as well.
In addition to technological capabilities and regulatory alignment, companies must increasingly consider how ESG solutions support meaningful stakeholder engagement.
As emphasized by ESG Voices, the integration of stakeholder expectations is essential to identifying material ESG topics, building trust, and ensuring the legitimacy of the sustainability process.
ESG platforms that facilitate stakeholder dialogue, feedback mechanisms, and materiality mapping can strengthen the social and governance dimensions of ESG strategy.
For these companies, therefore, it becomes even more important to rely on partners that not only provide innovative solutions but also can assist them on the path to ESG reporting, stakeholder engagement, and verification of corporate performance.
