Streamlining ESG Reporting with Low Code: A Practical Guide for Businesses

Environmental, social, and governance (ESG) reporting is fundamental to modern business operations. Companies must provide accurate, increasingly comprehensive reports on sustainability efforts and social impact. However, the manual processes and disconnected systems that many businesses use make this reporting time-consuming and prone to errors.

Low code platforms offer a way to simplify ESG reporting through automation and better data management. This article explains how businesses can use low code solutions to transform their ESG reporting from a complex burden into a streamlined process.

Short on Time? Here’s a Brief Overview:

• Major ESG frameworks, such as GRI, SASB, and ISSB, now require detailed tracking of carbon emissions, workforce diversity, and governance practices.

• New regulations like CSRD demand more frequent, granular sustainability reporting.

• Most companies struggle with fragmented ESG data spread across multiple departments and systems.

• Low code solutions connect data sources and automate calculations for faster, more accurate reporting.

• Modern low code platforms help organizations adapt quickly as reporting standards change.

The Challenges of ESG Reporting

ESG reporting measures and communicates how a business impacts the environment and society, along with how well it governs itself. For investors and regulators, these reports provide insights into a company’s long-term sustainability and risk management, but they’re becoming increasingly difficult to manage.

The complexity of ESG standards

The first hurdle in ESG reporting is navigating complex reporting standards and regulations. Leading standards-setting organizations include:

• The Global Reporting Initiative (GRI) develops comprehensive sustainability reporting standards addressing organizational impacts on the economy, environment, and society.

• The Sustainability Accounting Standards Board (SASB) creates industry-specific standards focused on financially material ESG factors.

• The International Sustainability Standards Board (ISSB) works to establish a global baseline for sustainability disclosure standards.

Companies must often report against multiple standards simultaneously, each with specific metrics and disclosure requirements. Regional regulations create another layer of reporting obligations that vary by jurisdiction and industry.

For example, the European Union’s Corporate Sustainability Reporting Directive (CSRD) affects around 50,000 companies and requires detailed reporting across environmental impact, social responsibility, and governance practices. Meanwhile, the US Securities and Exchange Commission (SEC) has proposed its own climate disclosure rules. This regulatory fragmentation means companies must carefully track and comply with evolving requirements across different regions.

Manual processes and fragmented systems

ESG reporting typically involves collecting data from numerous departments and systems. Facility teams track energy use, HR maintains workforce metrics, and legal departments document governance policies. Without automated systems, gathering and validating this information is a time-consuming manual process.

Regulatory scrutiny and investor pressure

Companies face growing pressure from regulators, investors, and business partners to provide more detailed and frequent ESG disclosures. Regulatory bodies are implementing stricter reporting requirements with potential penalties for non-compliance. Meanwhile, investors increasingly use ESG performance to inform investment decisions, demanding transparent and accurate sustainability data.

How Low Code Platforms Address ESG Reporting Challenges

Low code platforms provide visual tools for creating applications without extensive programming knowledge. Teams can then build custom solutions that automate ESG data collection and reporting without waiting months for traditional software development.

Here’s how you can benefit from low code development:

Better data integration

Most companies store ESG data across many systems, but low code platforms can connect these through pre-built integrations. Instead of manually copying data between systems, information flows automatically into a central ESG database.

Adapting to new ESG requirements

As reporting standards change, companies using manual processes scramble to update their methods. Low code platforms make these changes easier through:

• Modular design that lets you modify specific calculations or reports without rebuilding everything.

• Pre-built components that handle common reporting frameworks.

• Visual tools to create updates faster than traditional coding.

• Built-in testing to verify that changes work correctly.

Automated compliance tools

Manual ESG calculations create opportunities for human error. Low code platforms, on the other hand, solve this by automating complex formulas and data validation. 

Take carbon footprint calculations as an example. A low code application can:

• Pull energy consumption data directly from utility systems.

• Convert different units (kWh, therms, gallons) into consistent carbon measures.

• Apply the latest emissions factors automatically.

• Flag unusual changes that might indicate errors.

• Generate audit trails showing how numbers were calculated.

Additionally, as ESG reporting requirements continue to evolve, low code platforms make it easier to adapt. New metrics can be added, calculations adjusted, and reporting formats modified without extensive redevelopment. This flexibility helps companies stay ahead of changing regulations and expectations.

Growing without system overhauls

ESG reporting requirements often expand as companies grow or regulations change. A business might start by tracking essential carbon emissions, but before long, it needs to add supplier sustainability data, workforce metrics, and governance indicators. Low code platforms handle this growth without requiring major system changes. The modular nature of low code applications means you can:

• Add new data sources without disrupting existing reports

• Scale up processing power to handle more data

• Expand user access as more teams need ESG information

• Create new reports and dashboards as requirements grow

Practical Applications of Low Code for ESG

When companies implement low code solutions for ESG reporting, they can create powerful tools that transform raw data into actionable insights. Here are four key applications:

Centralized ESG dashboards

Gone are the days of quarterly or annual ESG snapshots. Modern businesses need continuous visibility into their sustainability performance, and low code platforms make this possible through real-time dashboards that consolidate all ESG metrics into one place.

Automated compliance tools

Meeting ESG regulations demands sharp attention to detail and extensive documentation. Low code platforms turn these requirements into automated workflows that catch issues before they become problems. These tools can:

• Check data against regulatory requirements automatically.

• Flag potential compliance issues before submission.

• Generate required documentation in the correct formats.

• Maintain audit trails of all ESG data and calculations.

• Update automatically when regulations change.

Customizable reporting frameworks

Each interested party wants ESG information presented differently. Investors might focus on SASB metrics, while NGO partners prefer GRI standards. Rather than manually creating separate reports, companies can use low code platforms to generate multiple views from a single source of ESG data.

Better transparency

Building trust requires more than collecting accurate ESG data—your company needs to make that information accessible and understandable to all parties involved. Low code platforms accomplish this with customized portals and automated reporting tools.

A Practical Path to Implementation

Here’s a step-by-step guide to implementing low code ESG reporting solutions:

1. Map your current process: Start by documenting your existing ESG reporting workflow. Which systems hold your environmental data? Where does social metrics information live? How do you track governance data?

2. Define your requirements: List the specific requirements for each ESG framework you report against.

3. Choose the right platform: Select a low code platform that aligns with your needs. The Mendix platform, for instance, offers built-in ESG reporting templates and connectors to common enterprise systems.

4. Plan your data integration: Map out how you’ll connect your ESG data sources and consider both current needs and future requirements.

5. Start small and scale: Begin with a pilot project focused on a specific ESG metric or reporting requirement. For example, you might start by automating environmental data collection before tackling social metrics.

6. Build your solution: Develop your low code application using a phased approach. CLEVR can help create custom components that perfectly match your reporting needs while maintaining compliance with frameworks like GRI or SASB.

7. Test and validate: Thoroughly test your solution with real data. Verify calculations, check data accuracy, and confirm compliance with reporting requirements.

8. Train your team: Provide comprehensive training for all users, including technical training on the new system and education about ESG reporting requirements.

9. Monitor and improve: Set up regular reviews to assess system performance and user feedback, and track metrics like reporting time savings and error reduction.

Final Thoughts

As reporting requirements grow more complex and expectations rise, companies need efficient, reliable ways to manage their ESG data and reporting processes.

Low code platforms offer a practical solution that bridges the gap between complex reporting needs and limited technical resources. They enable companies to automate data collection, standardize calculations, and adapt quickly to changing requirements without massive IT investments.

For further information, explore CLEVR’s guide on how low code can streamline CSRD compliance or learn more about building smarter and faster with low code.

Research Methodology

This analysis draws on research from leading analysts and industry reports on ESG reporting trends and low code adoption. It incorporates implementation case studies and regulatory guidance to provide practical insights for organizations working to improve their ESG reporting processes.

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