What is ESG reporting software?
ESG reporting software, also called ESG software, automates the process of collecting, aggregating and analyzing ESG data to support decision-making. The platform creates a framework based on the ESG standards of your choice.
Investors are increasingly incorporating ESG factors into their analysis of companies to identify growth opportunities and material risks. ESG metrics are not mandatory in financial reporting, although a growing number of companies are issuing annual reports with such disclosures (CDP, GRI, SASB, TCFD, etc.). Due to the complexity of ESG reporting, ESG software is critical to helping companies streamline their reporting process.
Why is ESG reporting software important?
ESG performance reporting is more than just a trend. The pandemic has shown us that there are risks that companies can no longer ignore.
To maintain high ESG performance, you need to implement a data management system and track key indicators such as energy use, water consumption, waste generation, and workplace health and safety metrics.
Striving for high environmental, social and governance (ESG) performance can bring you 3 key benefits:
Adaptability to change
Your ability to adapt business models is critical for companies that want to remain viable in the face of rapid technological or regulatory change.
Regulatory compliance readiness
Your efforts to prepare for regulatory compliance or to prepare for potential future regulations include deploying renewable energy infrastructure, adopting new technologies to reduce environmental footprint, and investing in related climate change mitigation projects.
Maintaining a positive brand image
Your ability to maintain a positive brand image can lead to higher employee retention and positive customer perceptions.
What are the most common features of ESG reporting software?
ESG reporting management software uses automated workflows and a user-friendly interface to help you comply with numerous disclosure requirements and monitor the performance of your environmental, social and governance efforts.
The best software solutions for ESG reporting offer 5 core features or functionalities.
Automated data entry
Data entry can be automated to reduce the risk of errors and increase efficiency. Data entry can also be manual or semi-manual. Software technologies can prevent data entry errors such as duplicate entries, irregular data, and human error.
ESG impact analysis
Automatically compile your performance indicators so you can track the impact of your company’s various initiatives in real-time. Manipulate data with a range of functions and calculations to identify new opportunities for your business.
The software provides you with a unified system for reporting to all stakeholders, with data reviews and audit trails. The reports can also be used for internal communications to explain the company’s initiatives and progress, or to meet the requirements of various reporting frameworks (SASB, GRI, CDP, etc.).
Audit with ease
ESG data management solutions ensure you meet the highest expectations of regulators and customers. Logins are available to external auditors, and the system tracks the path of all your ESG data, from collection to analysis to reporting.
An interactive dashboard that displays your commitments and ESG performance helps you communicate more effectively with various stakeholders. It is a convenient platform for them to gain real-time insight into your ESG activities.
Who are the most frequent buyers of ESG reporting software?
ESG software solutions can be used by a variety of industries, including financial services, energy, manufacturing, pharmaceuticals, real estate and construction, retail, technology, and transportation.
From your board members to your finance department to your sustainability team, ESG reporting software is proving to be a critical step in the digital transformation of businesses to maintain a positive corporate brand and drive sustainable growth.
2022 list of the top 10 ESG reporting software solutions
For more software solutions that fit your needs, budget and location, see our dedicated ESG reporting software directory.