ESG represents a complex set of challenges for most enterprises. Despite internal and external pressures to step up efforts, just 46% of executives say they have a formal ESG program in place, according to the OCEG survey, and even fewer (43%) have established KPIs for ESG objectives. The relative experience of corporate boards is likely one reason for the slow pace of progress. Just 29% of Fortune 100 board directors have relevant ESG credentials, according to a report by NYU Stern Center for Sustainable Business.

The bigger challenge for many organizations is the lack of integrated data-collection methods, reporting, and related processes. In most organizations, activities that define the component parts of ESG are scattered throughout operations and corporate departments. Not surprisingly, then, of U.S. companies surveyed in 2021 by Global GSM Monitor, just 27% explained their methodology for overall ESG reporting, and even fewer (19%) disclosed their formulas or calculation methods on how ESG data was gathered.