ESG

Why Escalation Alone Rarely Resolves ESG Reporting Delays

The pressure in ESG reporting sits downstream - where disparate data must be normalized, validated, and made disclosure-ready.

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Strong manager relationships matter. They support cooperation, trust, and responsiveness, and they are an important foundation for effective ESG data exchange. However, relationship strength alone does not resolve the structural mismatch between how ESG data is produced by managers and how it must ultimately be reported by institutional asset owners.

Managers operate within their own reporting cycles, resourcing constraints, and regulatory obligations. ESG data requests arrive alongside portfolio management demands, fundraising activity, investor reporting, and firm-level compliance requirements. Even where expectations are clearly communicated and goodwill is high, submissions may be delayed, incomplete, or provided in formats that are not directly usable for asset-owner reporting purposes.

Standardized templates help reduce variability, but they do not eliminate it. Managers interpret questions differently, apply assumptions inconsistently, and attach supporting documentation in a wide range of formats. As a result, the burden of normalization, validation, and methodological alignment shifts downstream. ESG teams must reconcile disparate inputs before data can be aggregated or disclosed with confidence.

For asset owners, this creates a coordination challenge rather than a cooperation problem. Escalation and repeated follow-up can improve response rates, but they do little to improve data quality, traceability, or auditability. In some cases, they increase risk by encouraging late submissions that bypass appropriate review and validation steps.

What reduces pressure is not chasing harder, but introducing structure around the process: earlier visibility into submission status and data quality, clearer validation checkpoints, and mechanisms that support consistent documentation of judgement, assumptions, and changes. These measures improve defensibility without relying on escalation, and allow relationships to focus on substance rather than deadline management.

Discover how Harvest introduces structure, validation, and clarity into complex ESG reporting workflows.

 

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