One of the biggest challenges companies face when committed to sustainability is managing and accurately reporting sustainability data, especially across complex supply chains. Companies often struggle with insufficient data collection and reporting, which leads to incomplete or inaccurate sustainability disclosures. This issue is compounded by difficulties in obtaining quality data from various internal departments and from suppliers, particularly regarding Scope 3 emissions (emissions related to the entire supply chain). The lack of harmonized and comprehensive data undermines transparency and credibility in sustainability efforts
. Additionally, companies face challenges balancing the high upfront investment costs required for sustainability initiatives with long-term benefits, navigating complex and inconsistent regulatory environments, and ensuring genuine commitment rather than superficial or misleading claims (greenwashing). Supply chain sustainability, including working with suppliers who meet environmental standards, is a significant hurdle as well
. In summary, key challenges include:
- Insufficient and fragmented data collection and reporting systems
- Difficulty in tracking and managing supply chain emissions and sustainability
- High investment costs and balancing short-term financial pressures with long-term sustainability goals
- Navigating complex, inconsistent regulations across jurisdictions
- Avoiding greenwashing and ensuring authentic sustainability practices
These challenges require robust data systems, cross-functional collaboration, clear sustainability goals, and leadership commitment to overcome
