The benefits and challenges of automating ESG compliance
ESG has become a major global and Middle East priority, yet the extensive compliance requirements often create a burden that can hinder its true impact and progress. Technology offers a powerful solution to this challenge, writes Sahen Ahuja, Chief Executive Officer of SustainInsight.
As ESG regulations continue to tighten across the Middle East, driven by multiple government mandates and incentivisation initiatives, companies need to demonstrate transparency, credibility, and measurable progress for the sake of their business and the sectors they operate in. A growing number are also taking the ethical responsibility more seriously and the desire to do better is clear.
Yet, ESG compliance can be a complex and fragmented process, often reliant on spreadsheets, scattered files, and manual data collection.
Thankfully, automation is changing that picture. Now, we need to educate companies on how to leverage new technologies to make ESG compliance far easier and more effective. By digitising and standardising ESG data management, organisations can move from slow and reactive reporting to generating sustainability reports with the click of a button.
While the benefits of automation are significant, there are challenges we can’t ignore. It’s only by recognising those that we can help companies navigate them thoughtfully in order to maximise their impact.
The challenge usually begins with the sheer scale and volume of data. This makes collecting information and then verifying it for auditors, regulators, and investors extremely time-consuming, with a high risk of error. Companies struggle with inconsistent formats, incomplete supply chain figures, and differing spreadsheets across departments.
Ensuring that every figure is accurate and credible requires extensive manual checks, which can delay reporting cycles, create visibility gaps, and make it difficult for stakeholders to trust the results. As the landscape demands greater accountability, manual ESG management presents increasing obstacles.
Understanding automation in practice
Automating ESG compliance transforms how organisations collect, validate, and report their sustainability data. What previously took months of manual consolidation and external consulting support can now be done in minutes.
AI-powered platforms automatically pull data from energy systems, bills, IoT devices, and supplier portals, converting it into standardised, audit-ready formats. Dashboards display real-time metrics across carbon emissions, energy use, and waste management, complete with alerts when performance falls short of targets. These systems also crucially predict future emissions trends and highlight potential compliance gaps.
The result is an end-to-end digital workflow, from data collection to stakeholder-ready reports, that saves time, improves accuracy, facilitates better planning, and reduces costs.
Almost every data-heavy or repetitive process within the ESG lifecycle can be automated. This includes:
- Data collection through AI-driven Optical Character Recognition (OCR), IoT sensors, and supplier uploads.
- Data validation and standardisation to ensure consistency across formats.
- Calculation of key metrics, such as Scope 1, 2, and 3 emissions.
- Regulatory reporting aligned with frameworks like GRI, LEED, TCFD, and ISO 14064.
- Dashboards and alerts for progress tracking, deviations, or emerging risks.
This level of automation not only reduces human error but also ensures that ESG reporting is consistent, comparable, and ready for audit. Plus, quality is monitored continuously, not only before reporting deadlines.
Unlocking the value of digitised ESG data
Once ESG data is centralised and digitised, organisations gain a powerful new layer of insight. Companies can benchmark performance across business units, regions, or suppliers, identify inefficiencies in energy, water, or waste, and model different scenarios for emissions reduction or cost savings.
Automation also makes supplier benchmarking far easier. It provides the ability to assess partners based on sustainability performance or local compliance metrics; for instance, In-Country Value (ICV) in the UAE, helping choose more responsible and locally aligned suppliers.
Ultimately, digitised ESG data enables strategic, evidence-based decisions and helps uncover new sustainability-driven revenue opportunities. For investors and clients, automation means verifiable, real-time information. Automated platforms produce live dashboards and KPI reports that can be easily shared to promote transparency and accountability.
Instead of broad commitments, stakeholders see quantifiable results, such as measurable carbon reductions, verified supplier compliance, and clear performance against global standards like ISO or LEED. All of this offers a significant a competitive advantage.
The challenges of automation
Still, automating ESG compliance isn’t without hurdles. Some of the issues companies face include:
- Data gaps from suppliers or legacy systems.
- Integration challenges with existing ERP or operational software.
- Internal resistance to change, particularly among teams used to manual workflows.
- Complexity in aligning multiple frameworks such as GRI, IFRS, and TCFD.
The most successful organisations approach automation strategically. My advice is to start small, demonstrate impact, and scale gradually. Training, clear standard operating procedures, and supplier engagement are key to success. By starting with high-value pilot projects and ensuring ongoing feedback loops, companies can steadily build buy-in and streamline adoption across their ecosystem.
While automation can transform ESG compliance, it should never replace human oversight. Technology is an enabler by capturing, analysing, and reporting data. However, the interpretation of that data, along with ethical and strategic decision-making, should still be human-led.
Strong governance frameworks and ESG oversight committees must be a priority so that automated insights translate into meaningful, responsible actions. Done right, automation empowers teams to do more, rather than detaching them from the process.
