Mapping ESRS Disclosure Datapoints to Relevant Datasets

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Owens, Steven (2025) Mapping ESRS Disclosure Datapoints to Relevant Datasets. University of Strathclyde, Glasgow. (https://doi.org/10.17868/strath.00092335)

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Abstract

The integration of geospatial data into sustainability reporting frameworks addresses challenges related to inconsistent and outdated Environmental, Social, and Governance (ESG) information. This third white paper from the Financial Regulation Innovation Laboratory (FRIL) explores the application of geospatial data in enhancing the European Sustainability Reporting Standards (ESRS). By aligning geospatial datasets with specific ESRS disclosure requirements, the study provides a foundation for corporations conducting double materiality assessments, auditors validating disclosures, and third parties—such as financial institutions and environmental organisations—performing due diligence. Geospatial data can be applied at the asset level (e.g., factories) or aggregated using a bottom-up approach linked to financial ownership, improving transparency and comparability across companies, sectors, and regions. However, the study finds that only 7% of ESRS datapoints can be externally validated due to the dependence on proprietary company information. Despite this limitation, different stakeholders benefit from distinct datapoints: investors may prioritise datapoints linked to external risks such as flooding or greenhouse gas emissions, while water-focused non-governmental organisations may emphasise hydrological indicators. The EU Omnibus package (February 2025) introduces significant changes to ESRS and corporate sustainability reporting. These include a reduction in in-scope companies (80% fewer under the Corporate Sustainability Reporting Directive), limited value chain coverage, and fewer required datapoints, which may lead to a data gap and reduced transparency. However, the shift towards quantitative over qualitative datapoints presents a critical opportunity for geospatial data to bridge this gap, offering independent, real-time, and scalable insights for ESG reporting. Furthermore, the revision of assurance requirements under the Omnibus package raises concerns about data verification and reporting accuracy. Given these regulatory shifts, integrating satellite-derived data into sustainability reporting frameworks could enhance objectivity, comparability, and reliability. Future regulations should embed geospatial data as a core element to strengthen the integrity and effectiveness of sustainability disclosures in the EU and beyond.

ORCID iDs

Owens, Steven ORCID logoORCID: https://orcid.org/0000-0001-8688-5812;
CORE (COnnecting REpositories)