Technology can be used to track just about every kind of metric imaginable.

But new research from Bain & Company spotted one potential blind spot.

That research indicated just 24% of companies say they are ready for upcoming sustainability reporting requirements — a potentially worrying statistic as Bain said it can take years to build the needed capabilities, such as the technology necessary for collecting, analyzing and reporting sustainability data.

Bain surveyed more than 300 executives, with nearly 90% agreeing improvements in digital technology are critical for advancing their sustainability goals. However, most say that they are not taking the actions needed to make that happen.

Bain’s findings come as the global regulatory landscape rapidly shifts and expands, and as companies are under pressure to anticipate additional reporting requirements.

The firm noted the EU’s Corporate Sustainability Reporting Directive mandates that EU companies start reporting on their greenhouse gas emissions and other environmental factors by 2025.

Bain also mentioned that in California, large companies will need to report on Scope 1 and Scope 2 emissions by 2026, and Scope 3 emissions by 2027 — not far off, considering the time it takes to put these systems in place, experts added.

“Technology will be essential for companies to meet their sustainability commitments and ensure compliance as regulations evolve,” said Adam Cox, Bain partner and member of the firm’s enterprise technology practice.

“In addition to carbon emissions, companies need to be prepared to address other aspects of sustainability, such as water use, waste management and supply chain ethics,” Cox continued in a news release. “Doing so will require companies to invest in new technology systems, often accelerating existing initiatives to modernize their IT.”

Bain’s research found that enterprise technology typically represents about 25% of a company’s Scope 1 and 2 emissions. Large data centers can consume as much as 5 million gallons of water daily, and end user devices, such as laptops, can contribute to a company’s electronic waste load.

Developing systems to minimize these impacts helps to build the capabilities that will serve the entire organization, according to Bain.

Beyond IT, Bain pointed out that enterprise technology is critical for monitoring and analyzing the data that executives depend on to understand baselines and set ambitions.

“Companies will need to set sustainability goals that align with the existing technology roadmap. Sustainability objectives can help turbocharge the business case for modernizing legacy technology and migrating to cloud workloads, so it makes sense to align the efforts,” Bain said.

Only about one-third of the executives Bain surveyed with high sustainability ambitions believed that they have the technology necessary to deliver on them.

“Technology can become the bottleneck preventing companies from delivering on their sustainability objectives,” Cox said. “Leaders in this space have been investing in custom solutions to support their sustainability efforts for more than a decade, and most companies just getting started know they have some catching up to do. Speed will be critical for companies looking to tap sustainability as a competitive advantage.”