Strategic Priorities for Cross-Border Interoperability in Sustainability Data
Targeting Investment
By The Aeolian
Unlocking greater interoperability in sustainability-related data exchange requires targeted public investment and international cooperation. While businesses are making strides in adopting environmental, social, and governance (ESG) reporting frameworks, a lack of harmonized infrastructure and policy coherence continues to impede scale and credibility. Investment priorities must reflect not only technical needs but also the institutional and governance frameworks that enable secure, cross-border data flows.
Public investment in digital infrastructure for trade and sustainability is essential. According to the World Customs Organization (WCO), many customs and border management systems still rely on siloed or paper-based infrastructure. To support seamless ESG data exchange, governments must modernize digital border systems, aligning with standards such as the WCO Data Model and integrating sustainability indicators into customs procedures. The EU’s ongoing investment in eFTI (electronic Freight Transport Information) infrastructure is a notable example, enabling the collection and verification of emissions data along freight corridors.
Public investment should also extend to open-access platforms that allow for the secure exchange and verification of sustainability claims. UN/CEFACT has proposed a modular architecture for environmental data verification systems that can be adapted across industries. Governments can support this by funding reference implementations and offering incentives for private-sector integration—particularly for small and medium-sized enterprises (SMEs) that lack the scale to invest independently.
A recurring recommendation across GS1 and UN/CEFACT research is the co-development of interoperable data models and taxonomies. GS1’s Global Data Synchronization Network (GDSN) and EPCIS 2.0 standards are already being used to share lifecycle emissions data and product provenance in real-time. However, uptake varies widely by region and sector. To close this gap, international cooperation is needed to fund interoperability pilots and facilitate harmonization of national implementations with global standards.
At the policy level, the World Trade Organization (WTO)’s Trade and Environmental Sustainability Structured Discussions (TESSD) have highlighted the lack of alignment between trade facilitation and environmental data requirements. Investment in multilateral policy dialogue, supported by neutral conveners like UN/CEFACT and the WTO, can foster shared protocols that balance commercial confidentiality with regulatory transparency.
One of the most strategic investments governments can make is in cross-border regulatory sandboxes—controlled environments where firms can test digital sustainability reporting and verification solutions under real-world trade conditions. The Peterson Institute advocates for such pilots as a way to reduce uncertainty and support innovation before formal regulations are finalized.
Successful examples include the EU’s Digital Product Passport testbeds in fashion and electronics, which bring together regulators, retailers, and logistics providers to co-develop scalable models. Similar initiatives in ASEAN and North America could help bridge regional gaps and align future policies with interoperable technical solutions.
Public investment and international cooperation should be directed not just at technological innovation, but at building the connective tissue—standards, infrastructure, and governance—that enables trustworthy sustainability data to flow across borders. By funding open standards, upgrading digital border infrastructure, and promoting policy convergence, governments can empower businesses to lead in sustainable global trade while preserving competitiveness and transparency.