The Association of Chartered Certified Accountants (ACCA) has urged organisations not to let patchy data derail their sustainability reporting, saying that decision-useful disclosures are still possible without hard figures.

In its latest report, Sustainability reporting: working with estimates, the accountancy body tackles the data challenges that often prevent organisations from producing reliable sustainability information.

The guidance sets out practical ways to develop sustainability information using “reasonable and supportable” information. This will enable the organisations to make transparent assumptions about current conditions and future outcomes, thereby guiding decision making.

ACCA Corporate Reporting Insights – Financial head Aaron Saw said: “As sustainability reporting requirements are still evolving, and globally accepted measurement methodologies for sustainability information have not been established, this guide provides valuable support to organisations everywhere as they begin the reporting process.”

The report reviews how organisations currently estimate sustainability metrics in situations where direct measurements are not feasible.

It notes that some entities rely on third-party or proxy data, while others derive sustainability indicators from existing financial or operational records.

The ACCA also points out that a number of organisations are attempting to improve data quality at source. Measures include training staff in data collection, building dedicated sustainability data systems and integrating them where possible, and establishing controls and collaboration across the value chain.

The report states that, although direct measurement should remain the goal for robust sustainability data, estimates are sometimes unavoidable because of uncertainty or because the scope of what needs to be measured is still evolving.

When high-quality data is missing, it suggests that gradually improving estimates over time can be a practical way to generate useful sustainability disclosures.

It adds that “reasonable estimates do not undermine the usefulness of the information if the estimates are accurately described and explained”.

Recently, the UK Government finalised the UK Sustainability Reporting Standards. The Chartered Institute of Management Accountants welcomed the move, calling the standards a “significant step” towards greater transparency, accountability and trust in sustainability reporting.