With the climate crisis accelerating, the demand for actionable, clear environmental data has never been higher. But despite the wealth of information available, many businesses still feel they’re navigating in the dark. A lack of technical expertise, overwhelming data volumes, and the struggle to identify relevant metrics are common pain points.
According to Earth Blox's report, entitled 'Scaling nature and climate analytics: A journey to 2030', this explosion in data, driven by rapid technological advancements, marks a shift from data scarcity to an era of unprecedented data abundance.
With IoT systems tracking real-time impacts of weather events, and innovations like eDNA and bioacoustics mapping biodiversity at granular levels, industry incumbents now have access to more localised, timely, and actionable environmental insights than ever before.
As part of the esteemed ESGFinTech100, Mike Mason, Chief Operating Officer at Earth Blox, sat down with FinTech Global's Harry Slade to discuss the newfound surge in data for nature reporting - and delve into how companies can utilise it to drive their sustainability strategies and comply with environmental regulations.
As CCO at Earth Blox, Mike brings 30 years of experience building world-class operations in technology companies and driving value for clients. His approach has ensured the successful growth and exit of several businesses, including TVSquared and LBi.
The misconception of data scarcity in environmental reporting
The misconception around data scarcity often stems from the complexity of accessing and interpreting the available data. Environmental data, unlike traditional business metrics, comes from diverse sources and varies widely in format and quality.
"First of all, it’s important to put this misconception to bed," said Mason. "A lack of data is not the problem. However, it’s true to say that it is difficult to find the right environmental data required to inform business decisions and take action. Ironically, the cause of the confusion is that we are in an era of data abundance, and much of this data is scattered across various platforms from an increasingly broad range of suppliers."
This is unfortunately a widespread phenomenon across multiple industries, as per a report from Millimetric.ai, 65% of companies report having "too much data to analyse."
In the area of environmental reporting, concern surrounding incoming regulations is also a clear factor to consider as firms struggle to grapple with these challenging datasets alongside their limited resources to analyse them.
Without the capacity, businesses risk falling behind in adapting to new and evolving regulations. As regulatory bodies worldwide ramp up requirements for environmental transparency and impact reporting, companies that cannot make sense of their data may struggle to meet compliance standards, leaving them vulnerable to fines, legal repercussions, and reputational damage.
Mason explained, "With time pressures from the introduction of rapidly evolving regulatory frameworks and standards, such as the Corporate Sustainability Reporting Directive (CSRD), Taskforce on Nature-Related Financial Disclosures (TNFD), and the European Deforestation Regulation (EUDR), companies may struggle to align the available data with what’s required for compliance, further perpetuating the idea that there is a shortage of relevant information."
Failure to develop these capabilities can lead to missed opportunities for sustainable transformation, ultimately affecting a company’s ability to respond proactively to climate policies and stay competitive in an increasingly eco-conscious market.
How to turn raw data into valuable insights?
In transforming raw environmental data into actionable sustainability insights, Mason believes that a common mistake is focusing solely on data. Instead, businesses should start by considering critical questions regarding the future of their operations.
"First, you should think about asking some key questions. What are the specific risks and dependencies that are most relevant to your business? It could be climate change impacts, biodiversity loss, or resource depletion, for example," explained Mason.
By clarifying these factors, companies can select the most pertinent data sources and workflows to effectively comply with regulations and generate actionable insights that support sustainable goals.
"While this may seem like we’re over-simplifying the process, this approach can bring together multiple data layers, such as land-use change, water availability, and carbon emissions, to create a holistic view of the environmental footprint across all of your assets or supply chain," he added.
Another factor to consider is the idea of leveraging advanced technology to produce the required actionable insights.
In the past decade, the explosion of environmental data has outpaced the industry's ability to interpret it effectively.
This surge in information is largely thanks to technological advancements, particularly in remote sensing, which has become more affordable and compact, enabling unprecedented data collection worldwide.
But now it is time to combat that in the next decade with the rise of equally impressive technology in the form of Machine Learning and AI, as Mason explained, "While all the advances in the last decade have been about “sensing”, the immense volumes of environmental data available today means that the next decade has to revolutionise “sense-making."
AI and machine learning have proven indispensable in automating complex analyses, from processing satellite images to identifying critical environmental patterns.
These technologies can help companies predict climate risks, such as floods or deforestation, and assess how these events may affect their operations or investments.
"Expect to see things move rapidly over the next few years in data analytics tools for transforming raw data into interactive maps and dashboards, making it easier, and quicker, for decision-makers to visualise risks and take action," claimed Mason.
The challenges for businesses
While there's a palpable sense of optimism for firms eager to advance their nature reporting and step confidently into the future, caution is still warranted.
At the heart of these concerns are regulatory requirements, with Mason highlighting a significant challenge in addressing the most urgent nature-related issues.
"Alongside the challenge of navigating large volumes of complex data, businesses also have to understand which questions they should answer to ensure regulatory requirements are met and the most pressing nature-related risks are mitigated.
Each business has unique nature risks and dependencies, often across multiple geographic locations and industrial processes. That is why it is important for businesses to be able to access specifically designed solutions to answer the core questions relevant to every business or to be able to adapt and customise a solution to fit their specific needs," he explained.
To effectively address these challenges and alleviate pressure, companies must leverage innovative solutions; firms like Earth Blox step in by providing a library of ready-made solutions that enable internal teams to extract meaningful insights quickly, even without GIS expertise.
As Mason explains, “the dynamic nature of our platform allows users to get answers in a couple of clicks with our suite of templates for reporting to EUDR and TNFD or conducting due diligence on Nature Based Solutions projects, for example, or they can deliver their own workflows in the case of unique or specific requirements.”
How Earth Blox can make the difference
But that is truly just the tip of the iceberg when it comes to Earth Blox's innovative offering.
The firm offers a groundbreaking platform designed to streamline the analysis of climate and nature risks by drastically reducing the time required for assessments.
What previously took teams an arduous 80 days can now be accomplished in just 8 minutes, thanks to the platform’s innovative geospatial tools.
These tools empower users to evaluate millions of assets swiftly and efficiently, equipping them with the insights to make informed decisions about environmental impacts.
In regards to data, the product makes finding it easier, according to Mason. "We curate and review the data we include in the platform, which includes premium and open-access data from trusted sources like IBAT, Chloris Geospatial, NASA, and the World Resources Institute," he remarked.
Earth Blox's platform is specifically designed for accessibility, catering to a diverse array of users, including CFOs, sustainability officers, and data scientists.
Accompanied with its easy-to-use drag-and-drop interface, it allows teams to engage with the platform effortlessly.
This enables companies to "quickly run assessments on risks such as deforestation, flooding, or biodiversity loss, and then use these insights to inform business decisions," according to Mason, adding greater efficiency to the entire process.
"This not only reduces the need for extensive in-house data science teams but also reduces the time it takes to move from data to action, enabling businesses to become more resilient and sustainable," Mason said.
Earth Blox’s platform not only streamlines the analysis of environmental risks but also enhances the ability of businesses to make timely, informed decisions.
By prioritising accessibility and usability of critical datasets, the platform empowers a diverse range of users to take actionable steps towards sustainability.
As Mason aptly put it, “We believe a fundamental part of our role is to signpost the right datasets and make them readily available and usable to provide the right answers in a timely fashion.”
This philosophy underscores Earth Blox’s commitment to supporting organisations in their pursuit of environmental responsibility and resilience.
This article first appeared in the ESGFinTech100 report - download it here.
Mike Mason
Mike Mason is Chief Operating Officer at Earth Blox. Mike brings 30 years of experience building world-class operations in technology companies and driving value for clients. His approach has ensured the successful growth and exit of several businesses, including TVSquared and LBi.