Automating the ESG Reporting Process: A Strategic Necessity

The demands of ESG (Environmental, Social, and Governance) reporting are increasing. For finance teams in Swiss SMEs, this means a growing burden that goes beyond mere compliance. The collection, preparation, and validation of non-financial key figures are becoming an integral part of financial statements. In this environment, the task to automate ESG reporting process becomes a strategic necessity. A recent study shows that ESG disclosure is approaching global saturation (Delgado Sanchez 2027). Reporting is thus becoming a data chain problem that requires a robust and traceable solution.

The Convergence of Standards Increases Data Pressure

ESG reporting is becoming more uniform worldwide. What was once a field with many local and industry-specific standards is increasingly consolidating. A study across 22 jurisdictions impressively demonstrates this convergence. Between 2019 and 2024, the standard deviation of disclosure rates fell from 14.4 to 6.19 percentage points (Delgado Sanchez 2027). At the same time, the average disclosure rate rose from 89.2% to 97.1% during this period. These figures show a clear trend: expectations of companies are aligning at a high level.

For a Swiss SME, this means that voluntary disclosures are increasingly becoming expected standards. Investors, banks, but also large customers and partners demand transparent and comparable ESG data. The required information often comes from different sources within the company. It must be collected from the ERP, HR systems, or operational records, then validated and brought into a reportable format. This creates a chain from the ERP export through various manual intermediate steps to the final report. The integrity of this chain is crucial for the reliability and credibility of the entire ESG reporting process.

Existing Tools and Their Limitations Under Pressure

Companies already use a variety of digital tools for finance and accounting. These systems are not fundamentally unreliable. However, their reliability can diminish under external pressure. A scientific study shows that economic uncertainty significantly affects the positive relationship between digital transformation and the quality of accounting information (doi.org 2024a). In stable times, manual processes in Excel may be manageable. In unstable phases — with increased time pressure, staff turnover, or new requirements — they can, however, become a significant source of error.

Manual interventions, copying and pasting data between different files, and complex, confusing formulas can jeopardise data quality. The complexity of financial reporting is considered a significant predictor of erroneous or even fraudulent reports (doi.org 2024a). This finding can be applied to ESG reporting. The more complex and manual the process, the higher the risk of inconsistencies and errors. The manual Excel layer that often exists around the stable ERP system can become the weakest link in the chain.

The Automated Chain as a Solution for Data Integrity

An end-to-end automated reporting chain ensures data integrity and increases efficiency. In this context, automation means designing the data path from the source system to the finished report without manual breaks. It is not about replacing the existing ERP system. Rather, the Excel layer used for analyses and reports around the ERP is automated. Skopa specialises in the automation of these recurring processes.

The benefits are multi-layered. Every step in the chain becomes traceable and auditable. Changes are documented, and data consistency is guaranteed at all times. Studies confirm that digital transformation improves the quality of accounting information by increasing transparency and reducing information asymmetry (doi.org 2024a). An automated reporting chain is the logical implementation of this transformation for ESG reporting. Moreover, modern algorithms can often detect anomalies in data more reliably than a manual review (doi.org 2024a). This creates an additional layer of control.

The strategic dimension goes beyond mere risk minimisation. Structured and reliable green accounting can have a positive and statistically significant impact on a company's financial performance (doi.org 2025). A robust process allows the finance team to concentrate on analysing and interpreting the data, rather than spending time on its manual preparation.

Practical Steps to Analyse Your ESG Data Chain

You can check the robustness of your ESG reporting process this month. The following steps will help you systematically analyse the existing procedure. You do not need any external tools for this, just a clear understanding of your internal processes.

• **Create a process map:** Document the entire path of ESG data from source to report. Which source systems are used (ERP, HR, etc.)? Who is involved in data collection and processing? Which tools, especially how many Excel files, are used? A simple flowchart sketch can already provide a great deal of clarity here.
• **Identify manual breaks:** In your process map, mark all points where data is manually transferred from one system to another. Where do manual calculations or adjustments take place in Excel spreadsheets? Each of these points is a potential source of error and a break in the data chain.
• **Assess complexity:** Estimate the complexity of your reporting structure. How many different Excel files are linked together? How opaque are the formulas and macros? High complexity can correlate with a higher risk of errors and make it difficult to onboard new employees (doi.org 2024a).
• **Check access rights and governance:** Who has permission to change raw data, calculations, and final reports? Is there a traceable version history or an audit trail? Clear access rules are fundamental to data integrity. Modern systems allow for granular control of access rights, thus supporting compliance with regulatory requirements (Microsoft 2026).

This analysis provides a solid basis for assessing the need for action. It highlights where the greatest risks to data integrity lie in your ESG reporting and where automation can provide the greatest benefit.

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