When we first started implementing ESG reporting for our clients, one thing became abundantly clearâthis wasnât just a finance problem. The introduction of the Corporate Sustainability Reporting Directive (CSRD) changed the game, and suddenly, finance teams found themselves needing to engage HR, procurement, IT, and even marketing to get a full picture of their companyâs sustainability impact. It was no longer just about numbers; it was about building a coalition within the organization.
But how do you convince teams already swamped with their own priorities that ESG matters? And how do you translate sustainability goals into something concrete and measurable? Through the ESG Reporting implementations we did in OneStream, weâve seen the roadblocks companies face firsthandâand more importantly, weâve figured out how to navigate them. Hereâs what weâve learned.
A Language Gap: ESG in a Finance World
One of the first issues we saw was that ESG felt foreign to finance professionals. It wasnât that they didnât care; it was that the language didnât click. ESG reporting requires collaboration across departments, but how do you explain sustainability goals to someone used to working with balance sheets and P&Ls?
What worked best was framing ESG in financial terms. If you already measure profitability, why wouldnât you measure your social and environmental impact? Connecting ESG to business performanceâwhether itâs risk mitigation, cost efficiency, or investor confidenceâhelped turn it into a strategic conversation rather than a compliance headache.
Who Owns ESG Data, Anyway?
Another stumbling block? No one really âownsâ ESG data (yet). Unlike financial reporting, which has a clear structure, sustainability metrics are unknown, not aligned and related data is scattered across different teams. Procurement holds supply chain data, HR has diversity and labor policies, IT tracks energy usage, and finance, of course, has the reporting expertise. Without a clear roadmap, ESG reporting efforts can easily become disorganized.
The solution? Identify key stakeholders early and bring them into the process in a structured way. Assign an ESG project lead who can coordinate efforts across teams, ensuring data is collected, measured and reported consistently. A well-functioning ESG Reporting team doesnât just meet compliance needs; it strengthens internal collaboration and strategic decision-making.
The Perception Problem: ESG as Extra Work
The next challenge was tackling resistance. Many employees saw ESG reporting as just another task on an already full plate. Itâs hard to get buy-in when people donât understand the âwhy.'
Engagement thrives on purpose-driven motivation. Organize kickoff meetings to gather input and solidify commitment. Share a compelling vision for ESG initiatives, highlighting how they align with business goals and social impact. Use real-world success stories, data-driven insights, and leadership endorsement to reinforce the value of participation.
And leadership support made all the differenceâwhen executives championed ESG as a business priority, teams were far more likely to engage.
The Data Struggle: Inconsistent, Scattered, and Incomplete
Gathering ESG data was another major pain point. Unlike financial metrics, sustainability data often isnât structured or easily accessible. Some companies simply didnât track emissions or social impact before, making the transition to ESG reporting a challenge.
The key to overcoming this was working with IT and data owners to create a full data model and centralize information. Defining clear KPIs, related data points, automating validation processes, and integrating sustainability data sources into OneStream allowed teams to report accurately and efficiently.
Winning Over Leadership: Why ESG Matters at the Top
One of the biggest game-changers was securing executive buy-in. Without senior leadership backing, ESG initiatives often lose momentum. The challenge was making leadership see ESG as more than just a regulatory requirementâit had to be positioned as a driver of long-term business value.
What worked? Aligning ESG initiatives with overall business goals. When leadership understood how sustainability reporting could enhance corporate reputation, reduce risks, and open up new investment opportunities, it became a priority rather than a compliance checkbox. Also here it applies that engagement thrives on purpose-driven motivation.
Making ESG Part of the Culture
Finally, the most successful ESG implementations werenât just about dataâthey were about mindset. Companies that embraced ESG as part of their corporate culture, rather than treating it as a regulatory hurdle, saw the biggest success.
Some of the most effective initiatives included hosting company-wide ESG kick-off events, embedding sustainability considerations into daily business decisions, and recognizing teams that actively contributed to ESG progress. Employees who felt involved in the process were far more likely to take ownership and integrate sustainability into their daily work.
Final Thoughts
Implementing ESG reporting isnât easy. It requires breaking down silos, engaging the right people, and embedding sustainability into the core of the business. But when done right, it becomes more than just a reporting exerciseâit becomes a strategic advantage.
At AMCO Solutions, weâve helped companies navigate these challenges and integrate ESG reporting seamlessly into OneStream. If youâre ready to turn ESG reporting from a compliance challenge into a business opportunity, letâs talk.
