Climate disclosures and EHS&S reporting have now become business-critical functions. Organizations face growing expectations from regulators, investors, customers, and other stakeholders to provide climate-related data that is accurate, transparent, and defensible. Yet many companies continue to rely on manual processes for collecting and managing that data, creating inefficiencies, blind spots, and accountability challenges that become more significant as reporting requirements evolve.
Climate disclosures are rapidly transitioning from voluntary reporting initiatives to formal regulatory requirements. Organizations are increasingly expected to provide structured, traceable climate data and demonstrate that the information behind their disclosures is reliable.
In the United States, California’s SB 253 is among the most significant developments. Public and private companies doing business in California that meet revenue thresholds must begin reporting Scope 1 and Scope 2 greenhouse gas (GHG) emissions in 2026, with Scope 3 reporting requirements following in 2027. Businesses will need to document their calculation methodologies, source data, organizational boundaries, and approaches to determining materiality.
In the European Union, the Corporate Sustainability Reporting Directive continues to serve as the primary framework for climate disclosure in the region. While the 2026 CSRD Omnibus update has provided some leeway in terms of scope and timelines, applicable organizations will still have to adhere to strict requirements for conducting materiality assessments and properly defining and measuring resource flows.
The direction is clear: reporting requirements are becoming more comprehensive, and the level of scrutiny is increasing. For many operations, however, the greatest challenge is no longer understanding what must be reported. The real challenge lies in managing the processes required to collect, validate, and govern the underlying data.
With expanding requirements for sustainability reporting across a wide range of jurisdictions and programs, businesses can’t afford to move forward without a modern solution. The problem is that data exists across utility providers, facilities, suppliers, procurement systems, and operational teams. Collecting that information, validating it, and turning it into reliable disclosures is where many organizations struggle.
For sustainability teams, a significant amount of time is still spent chasing data, following up on requests, reconciling spreadsheets, validating calculations, and locating documentation. A 2024 PwC survey found that 90% of companies reporting under the CSRD are currently using spreadsheets to meet their sustainability reporting obligations.
That approach may have worked when reporting requirements were relatively limited, but it does not scale well in today's environment.
When climate reporting relies on spreadsheets, email chains, and manual follow-up, several common challenges emerge:
When something falls behind schedule, organizations often assume they have a people problem. In reality, they usually have a process problem. Even highly capable teams will struggle when they are asked to manage increasingly complex reporting obligations using workflows that were never designed for that level of scale.
When people hear the word "automation," they sometimes assume it means replacing people. It is not. The most effective automation strategies remove repetitive administrative work so employees can focus on analysis, decision-making, and continuous improvement.
For climate reporting, automation can help organizations:
Instead of spending time correcting avoidable errors, teams can focus on understanding what the data is telling them and identifying opportunities for improvement. Managers gain greater visibility into reporting progress and can address bottlenecks before deadlines. The result is not just improved efficiency, but greater confidence in the reporting process itself.
Automation is important, but it’s just one part of a broader approach needed to manage EHS&S data with efficiency and accuracy. It only works when implemented in a way that ensures proper governance, accountability, and data ownership.
One of the clearest examples of automation's value is utility data management.
Many organizations process thousands, and sometimes tens of thousands, of utility bills every year. These records are critical for greenhouse gas inventories and sustainability reporting, yet the information is often collected and entered manually.
One ERA-EHS Software Solutions client processes about 50,000 utility bills annually. At approximately 10 minutes per bill, that represents more than 8,300 hours of administrative effort each year, the equivalent of roughly four full-time employees dedicated solely to collecting and entering utility information. Automation cuts that to a fraction of the time.
Automating utility data collection allows information to be captured directly from the source, standardized, validated, and made available for reporting without extensive manual intervention. The time savings can be substantial, but efficiency is only part of the benefit.
Data quality remains one of the most significant sustainability reporting challenges organizations face. In a Deloitte survey of U.S. business leaders, 57% identified data quality as their leading ESG data challenge, while 88% ranked it among their top three ESG data challenges.
Automation can address many of these issues by applying validation rules that identify missing information, incorrect units, duplicate records, and unusual values before they affect reporting results. More advanced solutions can even flag anomalies that warrant further investigation, helping organizations improve both efficiency and confidence in their disclosures.
One of the most overlooked benefits of automation is its ability to strengthen accountability.
Many reporting challenges occur because ownership is unclear. Data collection requests may be distributed across multiple teams or entire departments and follow-up relies on manual reminders. Reporting managers have limited visibility into what has been completed and what remains outstanding.
Automation changes that dynamic. Tasks can be assigned directly to responsible individuals, automated reminders keep progress on schedule, and approval workflows ensure appropriate review and oversight. Dashboards provide real-time visibility into reporting status and outstanding activities. Organizations maintain a clear record of who completed specific tasks, when they were completed, and what information was submitted. Accountability becomes embedded within the process rather than something managers must continually chase.
With automation, every detail can be captured by default. This level of documentation and governance is also valuable during audits and assurance engagements, where organizations must demonstrate the integrity and traceability of their climate data.
As the climate disclosure landscape continues to evolve, organizations can’t afford to remain caught up in inefficient and unreliable processes. Instead, it’s time to centralize data, automate repetitive work, and strengthen accountability. In doing so, businesses can improve how they handle reporting and develop the flexibility and resilience to respond to new requirements in the future.
Chelsea Scalia is a Sustainability and Health & Safety Project Manager at ERA-EHS Software Solutions. ERA-EHS provides a full range of software solutions for sustainability disclosure and reporting, environmental compliance, and health and safety. Its solutions are used by organizations across a wide range of industries, including Fortune 100 and Fortune 500 companies.
