Most ESG reporting mistakes are made as early as Q1

2026-02-02 15:04 News & Insights

Most companies only start focusing on ESG reporting intensively when the deadline approaches. Yet the most serious issues do not arise at the end of the year, but right at the beginning — during data collection in the first quarter.

This is where it is decided whether ESG reporting will be:

structured and useful for management,
or chaotic, costly and full of compromises.

Below, we summarise the most common mistakes we see in larger companies. The good news is that most of them can be systematically eliminated through a digital ESG data collection platform — not another Excel spreadsheet.

“ESG reporting only starts to deliver real value once a company has its data under control — knowing who is responsible for it, where it comes from and how it can be used in decision-making. Without a system, sustainability quickly turns into nothing more than an administrative burden,”

says Sandra Feltham, CEO of Flagship.

1. Unclear data ownership from the outset

What happens in practice:

Sustainability data is collected across the organisation without clearly defined owners.
In Q1, spreadsheets are sent out by email with a generic request to fill them in.
There is no clear overview of who is responsible for which data and at what level of quality.

As a result, the data collection process quickly breaks down. Delays occur, data is incomplete or inconsistent, and the ESG manager spends a significant amount of time on operational tasks instead of managing the process as a whole.

How the Flagship Platform addresses this:

The digital platform allows responsibilities to be clearly assigned to specific data points and enables continuous tracking of completion status — without the need for personal emails or shared links.

2. Data collection in spreadsheets without structural or logical control

What happens in practice:

Each team works with a slightly different version of the spreadsheet.
Formulas are overwritten or deleted, and unintended edits occur.
There is no input validation (different units, ranges, or dependencies).

The result is a high risk of errors, extensive manual checks and a gradual loss of trust in ESG data as a whole.

How the Flagship Platform addresses this:

The platform uses a single, unified data structure across the entire organisation, including all subsidiaries. Mandatory fields, change logs and a full audit trail are built in. Consultants also have access to the platform, enabling ongoing reviews and support where clarification is needed.

3. ESG data is not prepared for carbon footprint calculation

What happens in practice:

Data is collected without alignment to a specific calculation methodology.
Only at the end of the process does it become clear that key data is missing or unusable.
Carbon footprint calculations are rushed and based on estimates.

This leads to inaccurate results, a weak foundation for climate strategy and limited usefulness of outputs for management decision-making.

How the Flagship Platform addresses this:

The platform collects data directly in line with the GHG Protocol methodology, ensures completeness already in the first quarter and prepares data for calculation without the need for additional adjustments.

4. Lack of ongoing visibility for management

What happens in practice:

ESG data is collected but not continuously consolidated.
Management only receives outputs at the end of the year.
ESG is perceived primarily as a reporting obligation.

This approach significantly limits the value of sustainability data. Throughout the year, management lacks information that could support strategic or investment decisions, and sustainability fails to fulfil its potential as a tool for managing risks, costs and impacts.

How the Flagship Platform addresses this:

The platform provides real-time visibility into data status and structured outputs tailored to different roles within the organisation. Clear dashboards allow ESG data to be used continuously for management purposes — not just for retrospective reporting.

5. Repeating the same mistakes every year

What happens in practice:

Spreadsheets are sent out again each year and ad hoc processes are recreated.
Know-how remains buried in emails or with individuals.
ESG reporting functions as a one-off project rather than a process.

The result is rising costs, frustration among involved teams and zero scalability. Each year, ESG reporting becomes more complex and demanding instead of gradually becoming simpler.

How the Flagship Platform addresses this:

The platform ensures data continuity year on year, enables repeatable and scalable processes, and prepares the company for future regulatory and business requirements — without starting from scratch every year.

ESG reporting does not start with the report, but with the system

If reporting relies on spreadsheets and emails, problems are inevitable — and usually arise much earlier than companies expect.

The first quarter is critical. This is when it is decided whether sustainability data will serve merely for mandatory reporting or become a foundation for managing impacts, costs and risks.

A digital platform for ESG data collection and carbon footprint calculation delivers more than time savings. It provides structure, transparency and data you can trust.

Would you like to see what sustainability data collection could look like in your company — without spreadsheets and emails?

👉 Book a no-obligation demo call with us