ESG: Expanding Beyond Basics

ESG regulations grow more complex each year, pushing companies beyond their comfort zones.

Keeping up isn’t just about compliance, it’s about continuously refining ESG strategies across the entire value chain. Yet assessing risks upstream remains a major challenge. Many companies struggle with data gaps, poor supply-chain visibility, and procurement teams without the right ESG data management tools.

The 2025 ESG rule wave

These frameworks raise the bar for CSRD compliance and ESG risk assessment, forcing organisations to look well beyond their own four walls.

Your blind spot: upstream data gaps

Even committed corporates struggle to collect trustworthy Scope-3 and social-impact data from multi-tier suppliers. Without supply-chain transparency, risks such as forced labour, deforestation, or high embodied carbon stay hidden. And so do the financial and reputational costs.

The rise of ESG data platforms

From our research, one thing is clear: A new wave of ESG-specific data platforms are stepping up. According to Verdantix, global spend on ESG reporting software will jump from US $1.3 billion in 2023 to over US $5.6 billion by 2029 (26 % CAGR).

These platforms:

  1. Aggregate and clean third-party data from rating agencies, satellite feeds, and IoT devices.
  2. Map complex supplier networks, flagging hot-spots for carbon, water, and human-rights risks.
  3. Integrate directly with ERP and procurement suites, turning insights into actionable tasks.

In short, they move companies past “checkbox reporting” toward data-driven, supply-chain transparency.

From metrics to real impact

Yet, let’s be honest: there’s still a lot of ESG fluff out there with some companies adopting basic practices to meet stakeholder expectations. But the tide is turning. More businesses are moving beyond surface-level commitments, embedding ESG into core operations:

  • Strategic sourcing that rewards low-carbon or fair-labour suppliers.
  • Targeted decarbonisation projects driven by granular Scope-3 data.
  • Investor-grade disclosures that unlock cheaper capital and brand trust.

Because, in the end, ESG isn’t about what’s reported, it’s about what’s delivered.

Where Catapult fits in

At Catapult, we help businesses cut through the ESG noise. We provide clarity on market trends, regulatory shifts, and best practices — drawing insights from peers and other industries. Our focus is separating real impact from marketing hype, so our clients can make informed decisions that drive tangible results.

Need a clear roadmap through CSRD and CSDDD? Let’s chat.

About the author

Florencia is a Research Analyst & Consultant at Catapult, where she conducts research and collects, compiles and analyses data gathered from different sources.

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