Beyond Greenwashing: Why Australia's ESG Tech Stack Needs to Be Built Like Financial Infrastructure

Australia faces a crisis of confidence in ESG reporting. With ASIC making 47 greenwashing interventions in just 15 months and penalties exceeding $11 million, it’s clear that voluntary sustainability claims aren’t meeting regulatory standards. As mandatory climate reporting expands to capture thousands more companies by 2027, Australia needs ESG technology platforms built with the same rigour as our financial infrastructure.

The Current ESG Data Crisis

The parallels between early financial technology and today’s ESG reporting landscape are striking. Just as banks once relied on spreadsheets and manual processes, most Australian companies still capture ESG data in fragmented systems with limited controls. PWC’s analysis reveals that 66% of ASX 200 companies don’t have their ESG reports externally assured, with many relying on manual data entry prone to human error.

This isn’t just about compliance. Poor data quality undermines the entire purpose of ESG reporting and exposes companies to regulatory intervention, reputational damage and legal liability.

Learning from Financial Services

Australia’s financial sector offers a proven blueprint. Under APRA’s CPS 234, banks must maintain information security measures “appropriate to the size and extent of threats” with clear board accountability. The framework demands robust data governance, real-time monitoring, penetration testing and comprehensive audit trails.

These aren’t optional extras in financial services because lives, livelihoods and market stability depend on data accuracy. The same principle must apply to ESG reporting, where decisions on capital allocation, climate risk and social impact rely on data integrity.

What ESG Infrastructure Should Look Like

From my experience building secure, compliant platforms across healthcare and fintech, ESG technology must incorporate several non-negotiable elements. Centralised data governance prevents the siloed approach that leads to inconsistencies and errors. Real-time validation catches data quality issues before they reach regulators or stakeholders. Comprehensive audit trails ensure every data point can be traced and verified. Automated compliance checks reduce human error while maintaining regulatory alignment.

Role-based access controls protect sensitive information while enabling collaboration across teams. Integration capabilities connect disparate systems without compromising security.

The Australian Opportunity

Australia has a unique chance to lead global ESG technology standards. With our phased mandatory reporting timeline and strong financial services regulatory framework, we can apply proven risk management principles to sustainability data before other jurisdictions catch up.

The companies that invest in robust ESG infrastructure now will avoid the costly retrofitting that inevitably follows regulatory enforcement. More importantly, they’ll demonstrate the same commitment to data integrity that has made Australia’s financial system globally respected.

As ASIC continues its greenwashing crackdown and mandatory reporting expands, the question isn’t whether ESG data needs financial-grade infrastructure. It’s whether Australian companies will build it proactively or be forced to by regulatory intervention.

The choice is clear: treat ESG data with the same rigour as financial data, or risk becoming another cautionary tale in ASIC’s enforcement reports.

David Martin F FIN is a technology leader with deep expertise in regulatory compliance, data governance, and secure digital innovation. With over 15 years’ experience designing and scaling platforms for highly regulated industries, David has delivered robust, audit-ready solutions for multiple industries. He is passionate about empowering Australian organisations to meet evolving sustainability standards through practical technology and operational excellence.
Learn more at esgcomplianceaustralia.com.au or connect with David on LinkedIn.