Turning obligation into opportunity

In the spring of 2025, many large corporations breathed a momentary sigh of relief when they published their first reports under the EU’s Corporate Sustainability Reporting Directive (CSRD). The complexity of the reporting process caught many off guard – even decision-makers, to the extent that the European Commission proposed a draft in February 2025 to ease the next phases and requirements of CSRD reporting. 

Regardless of whether these requirements are relaxed, the EU’s green transition is transforming data management in companies of all sizes. 

It is no longer sufficient for large corporations to report only on their own operations; they must also provide insights into their entire value chain. Large companies and public entities are thus obliged to demand sustainability data from their subcontractors – and if a subcontractor is unable to supply it, they risk losing business. 

Whether your company was part of the first wave of CSRD reporting in spring 2025 or preparing for the future, now is the right time to bring in a data management expert to lighten the reporting burden. 

Manufacturing industries, in particular, should stay alert: many companies are well positioned to leverage ESG data to create business value and gain a competitive edge. 

Expert support for data management – some data can be generated in real time 

The biggest challenges in sustainability reporting relate to data. Without high-quality information and effective systems, reporting becomes an overwhelming task. A well-structured data architecture reduces manual work and simplifies processes. 

“The earlier you bring a data management expert into the process, the better. It is smarter, easier and cheaper to build processes with technology in mind from the outset rather than trying to automate manual practices later,” says Mikko Tommola, Head of Industry Advisory. 

Sustainability spans all business functions, from human rights to greenhouse gas emissions, and not all information can be quantified. Approximately 70% of the data points required for CSRD reports are narrative-based, meaning they must be described in text. 

However, a significant portion of the ESG data required under EU regulations could be collected automatically in manufacturing industries, in some cases even in real time. ESG data can often also create business value. There are already examples of this in the forestry sector, where the EU Deforestation Regulation (EUDR), which came into force in 2023, introduced strict traceability requirements to combat deforestation. 

“At that time, we implemented major development leaps for our forest cluster clients: the same system used for managing certification can now also be used to manage costs. Similar synergies should be sought in managing the ESG data required for CSRD reporting,” Mikko Tommola remarks. 

“The key consideration must be business value: if automation saves one employee five minutes per month, it’s obviously not worth the investment – but if it enables real-time visibility into the carbon footprint of individual shipments at the click of a button? That’s an investment worth making,” he says. 

Hoping for smoother sustainability reporting? ESG Data Framework can help 

For many companies, the first CSRD report proved more labour-intensive than expected. Kati Kaitua, Senior Data Advisor, ESG Data Management, highlights multiple reasons for the heavy workload. 

“In large enterprises, sustainability reporting has traditionally been the responsibility of a specific corporate-level team. While these teams have extensive expertise and experience, the complexity of reporting has increased significantly under CSRD,” she emphasizes. 

“Now, data had to be gathered from across the corporation and the entire supply chain, often from entities that had never before collected or reported ESG data. In many cases, data had to be collected manually. Additionally, the foundation of reporting, double materiality analysis, did not serve its purpose in all companies. On top of all this, companies faced the looming threat of massive penalties if an audit revealed CSRD violations,” Kati Kaitua lists. 

Tietoevry’s ESG Data Framework is a structured model that establishes clear data management practices while minimizing redundancies and manual processes. It enables comprehensive ESG data management, transparency and traceability – including data collection, processing, and sharing across the supply chain and broader data ecosystem. 

“ESG Data Framework is a data management concept – a toolkit that allows us to assess a client’s current state and create a foundation for efficient data management. With it, we help our clients not only achieve their sustainability goals but also demonstrate their business value,” says Tiina Tawaststjerna, ESG Data Lead. 

“There are many products on the market that claim to solve ESG reporting challenges. However, if a company purchases such a solution outright, the added value is often very small, or even negative. We are not product vendors, nor are we tied to any specific solution. Our aim is always to leverage the client’s existing systems and, through the ESG Data Framework, identify the most efficient solution for comprehensive ESG data management,” Mikko Tommola notes. 

“We can help clients across industries reduce their ESG reporting burden. For manufacturing industry clients in particular, our ESG Data Framework can also create a competitive advantage. Sustainable products often command premium prices, and in more and more industries, sustainability is already a prerequisite for making a sale. Pioneers in ESG data management are reaping the greatest benefits,” Tiina Tawaststjerna concludes. 

From reactive to proactive ESG data management