In order to get the full sustainability picture, companies must collect data from both inside operations and from value chain partners. In fact, the first thing that sets sustainability data apart from other business data is the fact that so much of it must be acquired from external business partners. Take, for example, a company's carbon footprint. We've learned that in most manufacturing situations, a majority of a company's overall carbon footprint comes from sources outside its four walls - goods and services it buys, transportation/logistics it uses in moving goods and people, warehousing and distribution of its finished goods to its customers, etc. Unlike the financial records that we use to compile our financial reports, this value chain greenhouse gas data must be requested from these external parties, some of whom we don't have direct relationships with (think up-tier suppliers). Furthermore, many of these companies don't have the data in formats that are useful to us. That's a real challenge.

• better collaboration with suppliers and value chain partners leading to cost-savings or innovation opportunities
• identification of third-party expertise and specialized IT tools that can streamline the data collection, management and reporting process
• increased capacity-building around data management and security. 

Another challenge ... and opportunity ... associated with sustainability data comes from the fact that some of the information we need (particularly in the social impact area) is entirely qualitative or has non-quantitative aspects. For example, we might have to collect narratives from third-party auditors we have retained to review labor conditions in suppliers. Or we might have to collect photographs of land use impacts associated with agricultural commodities we purchase so that these impacts can be compared over time. These "data" don't fit neatly into a quantitative box in the way that financial information does. So, the challenge is to develop protocols and methods by which the collection, management and reporting processes associated with this "soft" data can be made as replicable, consistent and transparent as possible - just like we do with "hard" data. Put another way, it's not okay to say that "John takes pictures of the tea farms when he gets the chance" if you're trying to respond to fair trade consortia inquires over extended periods of time. You cannot fall back on the fact that this is "soft" data as an excuse for using second-rate collection, management and reporting processes.

• develop protocols around soft data management that employ best-practice processes (see our Ideas You Can Use Now section for some tips)
• leverage non-profit resources in your "soft data" validation and assurance processes
• build or strengthen industry approaches to soft data, enhancing existing partnerships with your peers.

Reaching out across extended value chains and dealing with soft data are just two of the many challenges and opportunities associated with sustainability data. We're seeing more and more challenges every day as companies grapple with increasing demand for information from multiple stakeholders. Fortunately, widely-accepted sustainability reporting protocols are maturing in ways that, at a minimum, make the sustainability information playing field fairly level for all those who choose to use these tools. Sustainability data management is a true work in process.