The New Role of the Finance Team: From Financial Reporting to Strategic ESG Data Management

The month-end closing is a familiar process. Figures are exported from the ERP system, prepared in Excel, and consolidated into recurring reports. Now, a new requirement is being added: the reporting of Environmental, Social, and Governance (ESG) criteria. This is not just another regulatory task. The changing Finance team role in ESG reporting represents a strategic turning point. The responsibility for non-financial data offers the opportunity to position the finance department as a central driver of sustainable value creation.

This change is being accelerated by a global trend. The disclosure of ESG information is becoming the norm worldwide. A 2024 study examining 22 jurisdictions shows a clear convergence of reporting standards (Delgado Sanchez 2024). For Swiss SMEs, this means the topic is gaining relevance, regardless of direct legal obligations. Customers, investors, and partners increasingly expect transparent information about a company's sustainability performance.

The Global Convergence of ESG Standards

The aforementioned study shows that the prevalence of ESG disclosures increased from an average of 89.2% to 97.1% between 2019 and 2024 (Delgado Sanchez 2024). Saturation has therefore almost been reached. At the same time, the deviation between different countries has decreased significantly. The standard deviation fell from 14.4 to 6.19 percentage points over the same period. This indicates a strong alignment of expectations and practices.

The study also found clear evidence of a 'catch-up effect'. In particular, the use of established frameworks such as the Global Reporting Initiative (GRI) and the United Nations' Sustainable Development Goals (SDGs) has increased significantly (Delgado Sanchez 2024). For finance teams, this convergence carries a dual message. On the one hand, complexity will decrease in the long term due to standardisation. On the other hand, the short-term pressure to build robust and comparable data collection processes is increasing. It is no longer sufficient to collect only isolated, disconnected data points.

More Than Just Compliance: ESG as a Value Driver

The motivation for ESG reporting should not lie solely in fulfilling regulations. The link between sustainability performance and financial success is increasingly being scientifically proven. A 2025 study found that 'Green Accounting' has a positive and statistically significant impact on the financial performance of companies (Jurnal Literasi Akuntansi 2025). Financial performance was measured using Return on Assets (ROA), a key metric firmly established in finance.

The analysis also reveals the complexity of the relationship. While not every individual sustainability variable showed a measurable impact on its own, the combined effect of all variables was significant (Jurnal Literasi Akuntansi 2025). This underscores the need for a holistic approach. With its expertise in analysing financial metrics like ROA, the finance team is predestined to understand and manage the drivers of non-financial value creation as well. It can bridge the gap between sustainability initiatives and their impact on the company's bottom line.

Data Ownership Belongs in the Finance Team

A central question when introducing ESG reporting is that of responsibility. Where in the company should the data be collected, validated, and prepared? This task is often assigned to communications or dedicated sustainability departments. However, there are good reasons to anchor data ownership within the finance team. Finance departments possess the necessary discipline and established processes for handling sensitive and audit-relevant information.

ESG data must meet the same quality standards as financial data. It must be accurate, consistent, traceable, and auditable. The finance team is accustomed to ensuring the integrity of the entire chain — from the individual document in the ERP system to the final figure on the balance sheet or income statement. The same diligence is required when recording CO2 emissions, water consumption, or employee data. If this responsibility is consolidated within the finance team, synergies can be leveraged and data quality can be ensured at a high level from the outset.

Digitalisation as the Key to Quality Assurance

Managing ESG data presents a significant challenge. The information comes from a wide variety of sources: consumption data from production, personnel metrics from the HR system, information from suppliers. Manually compiling this in Excel spreadsheets is error-prone and not scalable. This is where digitalisation comes into play. A 2024 study proves that digital transformation has a positive and statistically significant effect on the quality of accounting information (Accounting, Finance and Computational Intelligence 2024).

Digitalisation improves the quality of information by increasing transparency, reducing information asymmetries, and limiting opportunistic behaviour by managers (Accounting, Finance and Computational Intelligence 2024). These findings can be directly applied to ESG data management. Automated processes for collecting, preparing, and consolidating ESG data reduce manual errors and create a transparent, traceable foundation. Automating the Excel layer, which often lies between the data sources and the final report, is a crucial step towards ensuring data quality and efficiency.

Practical Steps for Your Finance Team

Taking on responsibility for ESG reporting is a process. The following steps can help your finance team actively shape this transition:

• Conduct an inventory: Identify which ESG-relevant data is already being collected in the company. This data often exists in various departments and systems, for example, in the form of energy bills, waste statistics, or personnel data. Create an overview of sources, formats, and responsibilities.
• Clarify responsibility: Start the internal discussion about data ownership. Argue with the need for auditability, consistency, and data quality — core competencies of the finance team. Position the finance department as the logical partner for managing this strategic information.
• Design a simple process: Start small. Select two to three key metrics, for example, CO2 emissions from energy consumption (Scope 2) or employee turnover. Map the data flow for these metrics using existing tools like Excel. The goal is a repeatable and documented process.
• Document the chain: Document the path of each metric from the original data source to the final figure in the report. This documentation is the basis for later automation and for external audits. It builds trust in the reported figures.

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