Data as power: ESG reporting as competitive advantage

In today’s business environment, data has moved beyond finance and marketing; it is now central to strategy, reputation, and competitiveness. For organisations serious about sustainability, the message is clear: what gets measured gets financed. In the world of Environmental, Social and Governance (ESG), this is no longer a slogan; it is a defining business truth.

The power of ESG data

Investors, creditors, and global partners now demand credible, granular ESG data (on emissions, energy use, workforce diversity, supply chains, and governance systems) that can be verified and compared. Across Africa, companies that demonstrate rigour in ESG measurement and disclosure are unlocking access to global capital, entering new supply chains, and building enduring trust.

As regulatory regimes strengthen and sustainability expectations rise, organisations without reliable ESG data face exclusion from financing, partnerships, and even market opportunities. In this new order, data is power: to negotiate, access funding, build credibility, and compete globally.

From compliance to competitive advantage

Many Nigerian firms still view ESG reporting as a compliance burden. Yet those who stop at compliance miss the real opportunity. When ESG data is systematically gathered, analysed, and linked to business strategy, it becomes a competitive differentiator.
Firms that can show year-on-year progress on key sustainability metrics like energy efficiency, emissions reduction, community impact, or governance quality are more likely to attract investors, access capital, and secure partnerships. Good ESG data doesn’t just support business; it strengthens and sustains it.

An African example

A clear example is Ecobank Group, with operations across 33 African countries. In December 2023, Ecobank secured its first US$200 million sustainability-linked loan from a syndicate of European development finance institutions led by Proparco.

The terms of the loan are tied to Ecobank’s ESG commitments, including measurable targets for green lending, emissions reduction, and climate risk management. The deal was made possible because the bank had credible ESG data, transparent reporting structures, and a clear climate strategy. By demonstrating accountability through data, Ecobank not only attracted new capital at favourable terms but also strengthened its reputation as a regional leader in sustainable finance.

This case offers a powerful lesson: in Africa’s emerging markets, strong ESG data is currency. It builds confidence among investors and financiers.

Key levers for effective ESG measurement

1. Focus on materiality.

Identify the ESG issues most critical to your sector; for manufacturing, it may be energy efficiency or waste; for services, diversity or data privacy. Focus on what is material, measurable, and impactful.

2. Strengthen governance.

The credibility of ESG data rests on governance. Establish clear roles, internal audit trails, and independent assurance. Data without governance lacks integrity.

3. Build data infrastructure.

Invest in systems that collect, verify, and analyse ESG data. Many firms in Nigeria still rely on spreadsheets or manual systems. Digital tools and integrated analytics are essential for accuracy and credibility.

4. Link data to strategy and finance.

ESG metrics should inform strategic planning, risk assessment, and financing decisions. When leadership KPIs and sustainability-linked loans are tied to ESG data, measurement becomes a strategic asset.

5. Disclose transparently.

Public reporting builds confidence. Regular ESG disclosures, whether in annual reports, standalone sustainability reports, or online dashboards, invite benchmarking, attract partners, and enhance brand value.

Nigeria’s emerging ESG landscape

Nigeria is moving in the right direction. The country recently became the first in Africa to adopt the International Sustainability Standards Board frameworks for sustainability reporting. This marks a significant step towards global alignment. Yet, many organisations still struggle with data quality, internal capacity, and governance systems.

Despite these challenges, early movers stand to gain the most. Companies that invest in reliable ESG data systems today will enjoy first-mover advantage, access to global funding, better investor confidence, and a stronger social licence to operate. In a world where capital increasingly flows toward verified sustainability, data strength will define who stays competitive.

The boardroom imperative

Forward-thinking boards are already reframing ESG as a strategic issue. The questions business leaders should ask include:

1) Which ESG metrics are truly material to our business?

2) Is our data independently verified and disclosed transparently?

3) How does our ESG performance influence our financing terms or market access?

4) Are our leaders accountable for ESG outcomes?

5) Have we built the capacity to turn sustainability data into business intelligence?

Boards that embed these questions into corporate governance frameworks will not only comply, they will compete and lead.

Conclusion

Measurement is the new muscle of modern business. ESG reporting is no longer about public image; it is about strategic positioning, access to finance, and long-term resilience.

For businesses seeking to compete globally, the path is clear: invest in ESG data systems, govern them with integrity, and disclose transparently.

Those who do will attract partners, earn investor confidence, and command a seat at the global table of sustainable capital.

The future belongs to those who can prove, not just claim, their impact. What gets measured gets financed. And what gets financed gets ahead.

Sarah Esangbedo Ajose-Adeogun is the Founder and Managing Partner at Teasoo Consulting Limited, a foremost ESG consulting firm. She is a former Community Content Manager at Shell Petroleum Development Company and served as the Special Adviser on Strategy, Policy, Projects, and Performance Management to the Government of Edo State. She is also the host of the #SarahSpeaks podcast on YouTube @WinningBigWithSarah, where she shares insights on leadership, strategy, and sustainable growth.