Over the past three years, there has been a noticeable increase in ESG disclosure rules, rising from 614 in 2020 to 1,225 in 2023. This rise shows that investors are asking for more openness and accountability. As a result, ESG reporting has become an important investment for companies that want to stay strong in the long run and keep a solid position in the market.

With nearly 50,000 companies preparing to report under the new CSRD, traditional ESG reporting methods, such as using Excel sheets, are no longer enough. Many companies are now using ESG software from Isometrix.com to guide their sustainability efforts and manage reporting tasks more efficiently.

What is ESG software?

Definition:
ESG software helps companies collect, manage, and report Environmental, Social, and Governance (ESG) data. It makes the process easier by automating data gathering, analysis, and report creation. This allows businesses to track their sustainability goals and meet growing compliance requirements.

In the past, many businesses relied on spreadsheets to manage ESG data. However, this was slow, error-prone, and hard to scale. Digital ESG tools solve these issues by offering faster, more accurate, and scalable solutions to help companies meet goals and follow rules.

Here are some common tasks that ESG software helps companies handle:

• Calculating and analysing carbon footprints

• Meeting ESG reporting standards

• Assessing double materiality

• Tracking progress towards ESG goals

• Creating sustainability action plans

12 ESG Software Tools Available Today

This software is known in the carbon accounting field. It supports ESG reporting by helping companies manage their environmental impact. The platform automates carbon tracking across all scopes and helps businesses report their carbon data accurately. The software follows a TÜV-certified method that aligns with the GHG Protocol, which makes the data reliable for planning emission reductions.

Workday
Workday is a cloud platform that includes ESG features within its financial and HR tools. It helps companies collect ESG data and connect it with other business information. This gives a complete picture of sustainability efforts.

Workiva
Workiva offers a cloud-based solution for ESG data management and reporting. It helps companies gather and organise ESG information while supporting different reporting standards. The platform is built to simplify connected reporting and ensure data accuracy.

Benchmark Gensuite
Benchmark Gensuite provides ESG tools as part of its environment, health, and safety software. It helps businesses collect high-quality ESG data, take action on sustainability goals, and meet performance standards.

Lucanet
Lucanet’s ESG software makes the reporting process easier with tools for gathering, analysing, and sharing ESG data. It includes ready-made templates that match global standards, automated data collection, and links to financial reports.

IBM Envizi
The IBM Envizi ESG Suite gathers ESG data into one system. It focuses on measuring emissions, reporting on sustainability efforts, and identifying ways to cut carbon output. The software helps companies manage and improve their sustainability performance.

Fairly Made
Fairly Made offers ESG tools designed for the fashion industry. It helps brands trace their supply chains and measure both the environmental and social effects of their products. The platform also lets businesses share this data with customers using QR codes and widgets.

SustainIQ
SustainIQ offers an ESG reporting tool that covers four areas: Responsible Procurement, Environmental Management, People, Health & Diversity, and Community Engagement. It allows real-time tracking and reporting on more than 200 metrics, including waste, emissions, and social impact.

KEY ESG
KEY ESG provides a flexible platform for managing ESG data across industries. It includes a library of ESG metrics aligned with major global frameworks, tools for tracking goals, and options for visualising data. The software can connect with existing systems and is regularly updated to meet current regulations.

Novata
Novata focuses on ESG tools for private companies. It includes a framework builder to help businesses choose which ESG data to track. The platform offers access to common standards, useful metrics, and visual reporting features to make sense of ESG insights.

MSCI
MSCI offers tools to support investment decisions with ESG data, research, and analysis. Their platform likely includes ESG ratings, reporting tools, and portfolio analysis to help investment professionals include ESG factors in their strategies.

AuditBoard
AuditBoard’s ESG platform helps companies collect data, reduce manual work, and simplify the reporting process. It focuses on accuracy and efficiency, giving companies a complete toolset to manage their ESG activities and meet reporting rules.

The Benefits of ESG Software

Using software to manage ESG efforts brings several advantages:

How to Choose the Right ESG Software for Your Business

Follow these steps to choose the best ESG software:

• Understand your needs: Define your ESG goals. Are you focused on transparency, meeting regulations, or cutting emissions?

• Check user reviews: Learn what other users think about how easy the software is to use and how well it works.

• Compare costs: Look at the full cost, including setup fees and regular payments.

• Review customer support: Make sure help is available when you need it.

The best ESG software should support your company now and grow with your future needs.

Common features in ESG software include:

• Tools to collect ESG data from across the company

• Reporting functions that match international standards

• Dashboards and analytics for monitoring progress

You can explore these features in more detail in our full guide to ESG reporting.

The Future of ESG and Sustainability Software

Here are some trends that will shape the future of ESG software:

• New rules and standardisation: Tools will evolve to support frameworks like CSRD and ESRS, helping companies stay in line with rules.

• Guided CSRD reporting: Some platforms now offer step-by-step features to help companies prepare for CSRD. These include:
  • An overview of what’s needed for CSRD readiness

  • Tools to integrate double materiality assessments

  • Task management and data collection based on ESRS

  • Automatic data export to create CSRD reports

• Smarter tools with AI: Artificial intelligence will help with large data sets and automate ESG reporting. It will also improve how companies track emissions across their supply chains.

• Real-time tracking and blockchain: Companies will be able to monitor environmental data in real time. Blockchain will improve how data is shared and tracked in supply chains.

• User-friendly designs: Software will become easier to use, with cleaner interfaces that make daily tasks simpler and more productive.

• Better collaboration: ESG software will support teamwork across departments and with partners. It will help manage emissions and improve how sustainability efforts are shared and understood.

As ESG rules become more detailed and widespread, advanced technology will be key to helping companies stay compliant and support a more sustainable future.