15 Jun 2026
A sustainability report running to more than 100 pages, complete with data and charts, is dismissed by investors as "greenwashing" simply because the information cannot be verified. This is not an isolated issue for a single company, but a common challenge in traditional ESG disclosure: delayed information, fragmented formats, and a lack of trust.
Dr Cheng Xu of International Business School Suzhou (IBSS) at Xi'an Jiaotong-Liverpool University has published a study in the journal Business Strategy and the Environment, pointing out that deeply integrating digital tools with the Integrated Reporting (IR) framework offers a systematic solution to this problem — but only if the risks behind the technology are properly acknowledged.
Integrated Reporting combines financial and non‑financial information, with a focus on long‑term value creation. Blockchain, AI, big data, and cloud platforms are helping to turn this concept into practice. ESG disclosure is therefore shifting from static annual reports into dynamic, traceable, and interactive formats.
The study provides practical pathways for three key stakeholder groups.
For companies, digitalisation enable real‑time collection and analysis of ESG data. AI can aggregate data from supply chain sensors to assess environmental impact; while predictive modelling helps organisations anticipate climate risks and incorporate them into the IR framework. For example, Unilever's use of digital platforms to track sustainability goals, contributing to a 20% reduction in operational water use. The study recommends pilot projects in high‑risk areas such as carbon footprint tracking and investing in scalable digital infrastructure.
For investors, interactive dashboards and machine‑readable formats (e.g., XBRL) reduce information asymmetry. Blockchain technology can ensure data immutability, helping to build trust in response to concerns about greenwashing. BlackRock's Aladdin platform already integrates ESG factors into risk assessments. The study suggests that investors advocate for standardised ESG taxonomies, such as those proposed by the ISSB, and strengthen due diligence processes.
For regulators, automated audits can detect inconsistencies in reports, while AI can monitor governance trends across industries. The Monetary Authority of Singapore's pilot of a blockchain‑based ESG registry highlights the potential of digitalisation to improve regulatory efficiency. Global interoperability of global standards remains essential.
However, the study stresses that digitalisation is not a complete solution. Cybersecurity risks, high adoption costs for smaller enterprises, AI algorithm bias, and information overload may undermine the credibility of ESG disclosure if not carefully managed. Dr Xu notes: “Digitalisation is not a ‘beauty filter’ for ESG; it is a magnifying glass — it amplifies transparency, but it also amplifies every data gap”.
In the long term, embedding digitalisation within the Integrated Reporting framework is a strategic choice for building more resilient business ecosystems. True competitiveness lies not in the length of a report, but in a system that is auditable, verifiable, and interoperable.
Dr Cheng Xu focuses on AI-driven sustainable development. He is a core member of the Big Data Analytics and Modelling Research Centre at Xi’an Jiaotong-Liverpool University and an adjunct lecturer in business analytics at Shanghai Jiao Tong University. Dr Xu engages students in examining the sweeping changes precipitated by AI in contemporary markets and corporate landscapes.
His research has been published in leading journals across medicine and business, including Social Science and Medicine (ABS 4, a top journal in social medicine), Journal of Nanobiotechnology (CAS Q1, a top journal in biomedicine), Journal of Business Ethics (FT 50), and among others.
Dr Xu also serves in editorial roles that span the social and natural sciences, including Associate Editorships at Humanities and Social Sciences Communications (CAS Humanities Q1 & JCR Q1). He contributes to the Neuroeconomic Management Committee as an executive member under the China Society of Technology Economics, a leading academic society in China. He also holds multiple professional certificates, including the Le Cordon Bleu French cuisine chef certificate from France, as well as relevant professional certificates from the American Heart Association and the American Sports Association, among others.
Prior to his PhD, he worked in industry as a strategy manager and CEO’s special assistant at Beijing Science Park Development Group—operator of the Zhongguancun Science Parks—and as a senior investment manager for multinational alternative funds （real estate and art. He was involved in multiple M&A and investment projects, and as a strategy and management consultant he advised firms such as Sheraton Hotels and Resorts, Beijing Tourism Development Committee, China Communications Construction Group, and Beijing Airport Economic Development Co., Ltd. Earlier in his career, Dr Xu worked part-time in luxury retail in Tokyo, New York, London and Shanghai, gaining insights into consumer behaviours that inform his research.
Business Strategy and the Environment is a leading sustainable business journal aiming to advance the understanding of green business strategies for improving the natural environment. The journal covers topics including corporate environmental management, eco‑innovation, green finance, and the circular economy.
By Xiaoxuan Chen
Edited by Thomas Durham
15 Jun 2026