European businesses increasingly see sustainability as a means to drive product innovation, operational efficiency and market leadership, a new study by osapiens has found.
The supply chain software firm’s The State of Sustainability Reporting in Europe study, which surveyed 250 business leaders across Europe, found that more than four fifths (81%) of senior sustainability professionals now view sustainability reporting as a driver of innovation and competitive advantage.
In addition, more than three quarters (77%) say that they are already automating parts of their sustainability reporting processes. However, at the same time, 25% cite a lack of internal ESG expertise as a barrier to rapid progress in this area.
Industries represented in the study included manufacturing, retail, automotive, chemicals and life sciences, with business leaders in six key markets surveyed: the DACH countries, the Benelux, the Nordics, France, Spain and Italy.
DACH markets lead the way
As it found, the DACH counties lead the way in terms of automating their sustainability reporting, with 88% already using automation tools. Some 29% of firms in this region have already reached full automation, which is close to double the European average of 15% – an indication that sustainability reporting still sees ‘widespread reliance on partial or manual systems’, osapiens said.
Elsewhere, some 60% of companies in the Nordics and Spain have introduced automation into their sustainability reporting, followed by 54% in France, 40% in Benelux, and just 36% in Italy.
‘A strategic priority’
“Across Europe, sustainability is no longer a compliance exercise – it is a strategic priority that drives innovation, resilience and market leadership,” commented Alberto Zamora, co-founder and CEO, osapiens. “European businesses are setting the global benchmark, turning sustainability into a catalyst for innovation and long-term growth.”
Despite the progress made, full automation is still out of reach for many, the study found, with major barriers including high implementation costs (30%), limited in-house ESG expertise (16%), and difficulties integrating with legacy systems (14%).
Elsewhere, close to one in three companies (30%) cite supplier compliance as their top reporting issue, with reliable, timely data harder to come by for many firms as they delve deep into their supply chains. Read more here.
