Discover 5 strategic advantages of reporting non-financial information (NFI) under the European Sustainability Reporting Standards (ESRS).
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Reporting NFI Under ESRS to Cut Your Carbon Footprint

Updated on
June 23, 2025

These are the 5 main advantages of reporting Non-Financial Information (NFI) under the European Sustainability Reporting Standards (ESRS):

  1. You meet regulatory requirements stress-free

  2. You gain a competitive edge in your sector

  3. You have ESG data ready for multiple use cases

  4. You improve internal data quality for decision-making

  5. You attract talent and align your teams

The advantages of reporting NFI under ESRS go far beyond just ticking a box.

This standard not only organizes how non-financial information is presented, it also makes life easier for those who need to interpret and compare the data: from investors to public administrations.

Knowing what to report, how, and in what format saves time, avoids misunderstandings, and reduces the margin of error.

It also helps align our strategy with European market demands, where good intentions are no longer enough. You need to show results.

Reporting well today is key to competing tomorrow.

Because without clear data, there are no strong decisions or solid arguments to negotiate, grow, or attract funding, especially in the context of emerging sustainable finance frameworks that are redefining access to capital.

5 strategic advantages of EINF reporting under ESRS

1. You meet regulatory requirements stress-free

Regulations are already in place, and they’re becoming more demanding.
Reporting under ESRS helps you stay prepared without last-minute improvisation.

Having a clear structure from day one prevents last-minute corrections and speeds up the entire review and submission process.

2. You gain a competitive edge in your sector

It’s not just about compliance. It’s about standing out.
Companies that report properly, with solid data, truly stand apart.

Showing that you’re in control of your ESG impact gives you a stronger position with investors, clients, and partners.

3. You have ESG data ready for multiple use cases

We don’t just work for the NFI report.

When data is well-organized, you can reuse it for CSRD, Taxonomy, ISO certifications, or whatever comes next.

This includes commonly requested metrics like your carbon footprint, which are essential across multiple frameworks.

Once everything is measured and structured, you can respond to any requirement without starting over.

This includes commonly requested metrics like your carbon footprint or applying a precise emission factor for calculating scope 1, 2, or 3 emissions.

4. You improve internal data quality for decision-making

Reliable ESG data isn’t just useful for reporting.
It helps you identify opportunities, risks, and priorities.

Making smart decisions is much easier when your data is structured from the ground up.

5. You attract talent and align your teams

More and more people want to work for companies with purpose and clear direction.

When we share real data and concrete objectives, we align teams better and build stronger internal commitment.

Experience our platform firsthand, schedule a demo.

What No One Tells You About the Real Benefits of Reporting (But You Need to Know)

The five benefits of ESRS reporting are clear. But what happens when you dig a little deeper? That’s where you find the real value, the kind that doesn’t stay in theory but shows up in how your business actually runs.

Compliance is just the beginning

Sure, reporting under ESRS helps you stay compliant. But here’s the truth: compliance means nothing if you’re late or sloppy

Companies that improvise end up with reports full of errors, inconsistencies, and no way to defend their data in front of investors or auditors.

What ESRS gives you isn’t just a technical framework. It’s a way to professionalize how you manage sustainability, with a common language, clear standards, and a solid foundation you can build on without guesswork.

Your competitive edge starts with owning your impact

Saying “we’re sustainable” isn’t enough anymore. You need to prove it, with data. And not just that: you need to explain it clearly, consistently, and in a way that makes sense to the people reading your report.

A well-built EINF using ESRS becomes a business tool. It helps you win tenders, convince major clients, close funding rounds. Not because you have a nice story, but because your numbers back it up.

ESG data isn’t just for reports, it’s for your whole strategy

One of the biggest mistakes is treating ESG data as something off to the side. It’s not. When your reporting is done right, you can use that same data for everything:

  • Adjusting operations.

  • Redesigning logistics.

  • Choosing better suppliers.

  • Defining prices or budgets more smartly.

In other words: your ESG data becomes the foundation for smarter business decisions.

If your data can’t support decisions, it’s useless

Having data isn’t the same as having useful data. So what makes it useful? It’s current. It’s connected. And it’s ready to answer real questions:

  • Where are we falling short?

  • Which parts of our value chain are creating the most impact?

  • What would happen if we changed this or that process?

A random data point won’t help. A well-structured system will.

Your teams feel the difference (even if they don’t say it)

When your reporting is solid, everyone inside the company notices, not just the Sustainability team. Finance, Operations, Legal, even HR. 

Suddenly, everyone understands what’s being measured, why it matters, and how they can contribute.

And that builds alignment. It strengthens your internal culture. And it takes the pressure off that one person who used to “own the EINF every year.”

What Happens When You Actually Use Your ESG Data (And When You Don’t)

Having data doesn’t mean much by itself. What makes a difference is how you use it

Let’s talk about what happens when you fully integrate your ESG reporting into day-to-day decisions, and what you risk if you don’t.

Reporting just to tick a box? You’re wasting time (and missing out)

A lot of companies still treat the EINF as a formality. They do the report because they have to. The issue? They don’t use the data for anything else. It gets locked away in a PDF and forgotten.

That’s a double waste: money (for all the effort to build the report) and opportunity (because that same data could actually help run your business better).

Useful data, at the right time, changes everything

Now imagine the opposite: you’ve got your ESG data connected and well-organized. You can track emissions monthly. 

You can compare suppliers by environmental impact. You can simulate what would happen if you change your logistics setup.

That’s decision-making power. And that’s what good ESRS-based reporting gives you.

Better reporting means lower costs

Reducing emissions doesn’t go against profits. In fact, it often boosts them. Companies that use their ESG data smartly often discover:

  • Energy being wasted.

  • Inefficient transportation routes.

  • Processes that create avoidable waste.

All of this leads to real cost savings, not just a nicer sustainability score.

Connected data = better priorities

Not all ESG issues are equally urgent. When your data is connected and reliable, you can prioritize by:

  • Environmental impact

  • Financial cost

  • Reputational risk

  • Regulatory deadlines

And that helps you make smarter calls without burning out your team.

You can’t improve what you don’t measure (for real)

It’s a cliché, but it’s true: if you can’t measure it, you can’t manage it. Without good metrics, you’re flying blind. That leads to two major risks:

  1. Inaction – doing nothing because you don’t know what works.

  2. Wasted effort – making changes that don’t actually help.

Having traceable, comparable ESG metrics is the only way to track if your strategy is working.

What if you get it wrong?

If you don’t have a clean, reliable ESRS-ready system, here’s what you’re up against:

  • Reports that don’t align with your actual sustainability goals.

  • Numbers you can’t justify to auditors or investors.

  • Confused teams that don’t know what’s expected of them.

  • Trouble adapting to CSRD, taxonomy, or other frameworks later.

The result? More stress, less credibility, and little to no real impact.

The fix: work with a solution built for this

You don’t need to do this manually or memorize every ESRS requirement. That’s what platforms like Dcycle are for:

  • They connect to your existing systems.

  • Organize and clean your data.

  • Generate reports that are ready for EINF, CSRD, taxonomy, or whatever comes next.

No repeated work. No guesswork. No headaches.

What does it mean to report NFI under ESRS?

Reporting NFI under ESRS means working with a standard that defines what ESG information to disclose and how to disclose it.

It’s not just a technical change. It’s a mindset shift: moving from generic reports to structured, useful, and comparable disclosures.

This saves time, reduces errors, and improves the quality of what we communicate.
We no longer need to adapt to each format request. 

Instead, we work from a common base that works for everything.

It also allows us to speak the same language as the rest of the market, which is key when we want to show strength, transparency, and long-term vision.

Why this is already on every company’s agenda

Sustainability is no longer a checkbox. It’s at the core of business strategy. Failing to understand this means being left behind.

New regulations don’t just require reporting. They reveal who’s doing it right and who isn’t.

If you don’t measure, you can’t improve. And if you don’t improve, you lose competitiveness.

Can we relax? Not really.

More and more investors, clients, and regulators are examining ESG data with a magnifying glass.

What do you need to consider before reporting with ESRS?

It’s not about copy-pasting data.

Reporting properly under ESRS means knowing what data you need, where it is, and how to connect it with each section of the standard.

You need data that is traceable, reliable, and organized. It shouldn’t change format every time someone touches it.

Because one broken data point can ruin the whole report.

And no, this can’t be fixed with a quick Excel spreadsheet.
It requires time, a solid management system, and above all, real, updated data.

The challenges of adopting ESRS (and how to solve them)

The first challenge is not knowing where to start.

Many companies haven’t even identified their ESG data, or it’s scattered across different systems with no control or traceability.

Another challenge is understanding what each section of the ESRS is really asking for.
It’s not just about filling boxes.

You need to justify each piece of data with solid, auditable criteria.

If you don’t do it right from the start, you’ll end up redoing reports again and again.

That’s why the solution is clear: automate processes, centralize your information, and work with data ready to reuse.

That’s how you turn a data mess into a valuable source of information for your NFI, CSRD, Taxonomy, or any future ESG need.

Ready to unlock efficiency? Schedule a demo.

How to turn ESRS reporting into a real competitive advantage

Reporting under ESRS shouldn’t be a box-ticking exercise. If that’s how you see it, you’re missing out on the real value: using your ESG data to make better business decisions. Here’s how to do it right.

Start with what you already have (don’t overcomplicate)

Your ESG data is already there. It’s just scattered, in spreadsheets, ERP systems, old reports, maybe even emails. The biggest mistake? Thinking you need to start from scratch.

What you actually need is to organize and centralize it. Once you plug it all into a platform like Dcycle, you can clean it up, use it, and stop duplicating work.

The result? Less wasted time, fewer errors, and way better decisions.

Focus on the data that actually matters

Not everything that gets measured matters. And not everything that matters is obvious.

ESG is full of “decorative metrics” that look nice but don’t help you run your business. Instead, focus on what truly drives impact—emissions, energy use, logistics efficiency, key suppliers, materials.

Your resources are limited. Spend them where they move the needle.

Automate (because rebuilding the report every year is insanity)

If you’re rebuilding your report every year from scratch, you’re burning time and money. And worse, you’re increasing the risk of mistakes with every update.

The fix? Automation. Once your data is clean and structured, you can reuse it across CSRD, ISO, SBTi, the EU Taxonomy, whatever comes your way.

Automation isn’t a luxury. It’s the only way to scale.

Use the report to drive action (not just to check a box)

A report no one uses is a waste. Many companies spend months building their ESG report, present it once, and then forget it even exists.

But if you do it right, your reporting becomes a GPS for your business:

  • Spot inefficiencies in your supply chain.

  • Switch suppliers with high emissions.

  • Back strategic decisions with solid data.

Data is only useful if you actually use it.

Avoid the “never-ending report” trap

Some companies spend six months finishing their ESG report. And by the time it’s done, the data is already outdated.

Reporting shouldn’t be a snapshot of the past. It should be a live tool. And for that, you need always-on access to your ESG data.

This way, you can:

  • Track progress continuously.

  • Adjust your strategy on the fly.

  • Make decisions in real-time.

Break down silos and align your team

One of the biggest ESG headaches? Departments working in isolation. Sustainability wants one thing, Finance has other priorities, and Operations doesn’t even know what’s going on.

With one centralized ESG data system, everyone works from the same source of truth. And that means:

  • Better collaboration.

  • Clear ownership.

  • Fewer delays and headaches.

Good ESG reporting is also a tool for internal alignment.

Use it to win business (yes, ESG helps you sell)

It’s not just about compliance anymore. Clients, investors, and partners expect real ESG data—and if you don’t have it ready, you’ll get left behind.

A solid ESRS-based report helps you:

  • Win tenders that require environmental criteria.

  • Stand out from competitors who are still guessing.

  • Respond faster to audits and client requests.

ESG isn’t just a legal obligation. It’s a sales advantage.

Align your climate goals with what you actually report

Plenty of companies have flashy climate goals on their websites or in investor decks. But when you look at their reports? No alignment, no metrics, no follow-through.

That kills trust.

ESRS gives you a way to align strategy and reporting. If you’ve committed to cutting emissions, your report should show it, with real numbers, clear trends, and year-over-year progress.

Without that connection between your goals and your data, your ESG strategy won’t hold water.

How ESG Reporting Helps You Uncover Hidden Emission Hotspots

When we talk about carbon footprint, most companies focus on the obvious: energy use, direct transport, facility emissions. But the truth is, a large part of your impact is hidden in parts of your business you rarely monitor.

The ESRS framework changes that. By requiring a structured and comprehensive view of your ESG data, it forces you to examine your entire value chain

And that’s when the hidden hotspots start to emerge: high-carbon raw materials, outsourced processes with no transparency, low-efficiency logistics, or even emissions from how your product is used after it leaves your hands.

When your ESG data is organized and traceable, it does more than help you comply. It reveals where you can act to cut emissions in a meaningful way. 

And that’s the real game-changer: using your reporting system as a tool for real improvement, not just box-checking.

From Measurement to Action: Turning ESG Data into Emission Reductions

Measuring alone isn’t enough. A report, no matter how polished, means nothing if you can’t use it to make better decisions

The real power of smart ESG reporting lies in transforming raw data into tangible actions that reduce emissions, improve processes and drive long-term value.

When your ESG information is connected, clear and up to date, you can start answering the questions that matter:

Where am I emitting more than expected?
Which suppliers are harming my environmental performance?
What operational changes could cut emissions without increasing costs?

This becomes actionable when your reporting is built on a strong structure like ESRS. It lets you go beyond annual summaries and actually use ESG data to guide your day-to-day operations. It’s not just a compliance exercise. 

It’s a management tool for better, greener business.

Aligning Your Decarbonization Strategy with Your Reporting: The Only Way Forward

Many companies set bold sustainability goals in their slide decks, but when you look at their reports, there’s no real evidence of progress or coherence with those targets. 

That’s where everything falls apart.

ESRS gives you a way to align your sustainability commitments with your actual data. If you’re serious about reducing your carbon footprint, that should be reflected in clear indicators, measurable progress, and year-over-year tracking.

This alignment doesn’t just improve transparency. It helps you evaluate whether your strategy is working or needs a rethink. 

And externally, it builds trust with investors, clients and regulators. Because nothing speaks louder than saying: “Here’s what we promised, here’s what we did, and here’s the data that proves it.”

Bridging the gap between strategy and reporting isn’t optional. It’s the only way to move forward with credibility and impact.

No more guesswork: schedule a demo.

Why Dcycle is the solution to report your NFI (and much more)

At Dcycle, we are not auditors or consultants.
We are a solution for companies that want to stop wasting time on reports that don’t actually help.

We gather all your ESG data and transform it into useful information.

So you can report your NFI under ESRS, but also comply with CSRD, SBTi, Taxonomy, ISOs, or whatever comes next.

We make it simple.

We connect with your systems, organize your data, and generate reliable and reusable reports. All from a single platform.

Because sustainability is not a “nice to have”, it’s a competitive advantage.
And if you don’t have control of your data, you won’t be able to use it.

That’s where we come in.

Frequently Asked Questions (FAQs)

What’s the difference between NFI and ESRS?

NFI is the report where we summarize the non-financial information of the company.
ESRS is the set of standards that defines how to structure and present that information.

One is the content, the other is the format.
Together, they make reporting clearer, more useful, and easier to compare.

Do all companies have to report under ESRS?

Not all, but almost.

For now, it applies to large companies and publicly listed ones, but the scope expands each year.

If it doesn’t apply to you yet, get ready anyway.
Because when the time comes, it’ll be too late to improvise.

When does ESRS reporting become mandatory?

The timeline is already in motion.

Large companies start reporting in 2025, using data from 2024.
Mid-sized companies follow after that.

The sooner we start, the better we position ourselves.
Nobody wants to be racing against the clock when there’s so much at stake.

Can I reuse my ESG data for other frameworks like CDP or SBTi?

Yes, and that’s the key.

When your ESG data is well-structured, you can use it for CDP, SBTi, Taxonomy, CSRD, ISOs, or any future requirement.

No need to repeat the effort if you’ve already measured and organized everything properly from the start.

How do I start preparing my NFI under ESRS with a digital solution?

First, you need to have your ESG data located and in good shape.
Then, with a solution like Dcycle, you connect it, structure it, and generate ready-to-go reports for any standard.

We’re not consultants or auditors.
We’re a solution that gives you control over your ESG information and helps you use it wherever you need it.

That way, you report better, with less hassle and no wasted time.

Take control of your ESG data today.
Take control of your ESG data today
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Cristina Alcalá-Zamora
CSRD Specialist | Content Creator

Frequently Asked Questions (FAQs)

How Can You Calculate a Product’s Carbon Footprint?

Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.

The most recognized methodologies are:

  • Life Cycle Assessment (LCA)
  • ISO 14067
  • PAS 2050

Digital tools like Dcycle simplify the process, providing accurate and actionable insights.

What Are the Most Recognized Certifications?
  • ISO 14067 – Defines carbon footprint measurement for products.
  • EPD (Environmental Product Declaration) – Environmental impact based on LCA.
  • Cradle to Cradle (C2C) – Evaluates sustainability and circularity.
  • LEED & BREEAM – Certifications for sustainable buildings.
Which Industries Have the Highest Carbon Footprint?
  • Construction – High emissions from cement and steel.
  • Textile – Intense water usage and fiber production emissions.
  • Food Industry – Large-scale agriculture and transportation impact.
  • Transportation – Fossil fuel dependency in vehicles and aviation.
How Can Companies Reduce Product Carbon Footprints?
  • Use recycled or low-emission materials.
  • Optimize production processes to cut energy use.
  • Shift to renewable energy sources.
  • Improve transportation and logistics to reduce emissions.
Is Carbon Reduction Expensive?

Some strategies require initial investment, but long-term benefits outweigh costs.

  • Energy efficiency lowers operational expenses.
  • Material reuse and recycling reduces procurement costs.
  • Sustainability certifications open new business opportunities.

Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.