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Originally Posted On: https://www.keyesg.com/article/top-10-esg-reporting-software-providers-for-businesses

Sustainability management software: The top 10 providers for businesses

Sustainability reporting is no longer optional. It’s now central to how businesses prove transparency, manage compliance, reduce their carbon footprint and build stakeholder trust.

A strong sustainability management strategy builds investor confidence and drives sustainable business growth. To meet rising stakeholder expectations, businesses are increasingly using sustainability management software that promotes cross-organisational data collection, provides detailed analysis and reports and drives data-driven insights and impact.

In this guide, we explore the best sustainability management platforms to enhance reporting processes, meet regulatory requirements and drive sustainability performance improvement across the business.

What is sustainability management software?

A sustainability report is a formal document that communicates an organisation’s environmental, social, and governance (ESG) data and long-term sustainability strategy to its stakeholders, such as investors, employees, customers, regulators, and the public.

The process of collecting, analysing and reporting the data can be complex and costly, which is why many companies use sustainability software for data collection, to produce reports and reveal actionable insights about improvement strategies. This software enables global organisations to manage and report on their environmental, social, and governance initiatives in a streamlined, efficient and transparent way.

The significant features of such software include:

  1. Metric selection or creation: Choose or create the relevant sustainability metrics that align with business goals, voluntary reporting frameworks, or regulatory standards.
  2. ESG data collection: Gather sustainability data from diverse sources and departments across the organisation, either through manual entry or through API integrations.
  3. Audit-ready reporting: Review and audit sustainability data, demonstrating process with audit trails to satisfy external assurers. Communicate sustainability performance clearly and provide auditable reports to satisfy customers, investors, employees and regulators.
  4. Compliance with regulations: Ensure compliance with evolving sustainability reporting standards and regulations, future-proofing your business against regulatory changes and minimising the risk of non-compliance.
  5. Performance analysis and improvement: Analyse sustainability performance, pinpoint improvement areas, assign tasks for necessary actions, and track progress towards targets.

Sustainability software facilitates corporate responsibility by ensuring compliance with standards and regulations. It helps organisations address societal and environmental risks and promotes sustainable and ethical business practices.

Top 10 sustainability management software providers

A sustainability management platform serves as a comprehensive solution for monitoring, measuring, and reporting on ESG data and performance.

Businesses can leverage these solutions to enhance transparency, compliance, and societal and environmental impact, addressing diverse organisational needs. Cloud-based sustainability management software provides flexibility and scalability for organisations of all sizes.

Here are the top 10 sustainability management software providers.

1. KEY ESG

KEY ESG is a leading sustainability management software provider, designed to enhance every step of the complex process of sustainability reporting for investors and companies.

The software allows users to choose sustainability metrics from a library of regulation-specific metrics based on over 1,000 data points, or create any custom metric specific to their business. Organisations can send data requests and reminders to colleagues, efficiently managing data collection workflows. With the data in hand, the software automates and validates the data calculations, produces charts and tables to measure and analyse performance, enables target setting, and tracks real-time progress.

Organisations can use KEY ESG’s API integrations to pipe data in and out of the platform for enhanced data collection and reporting functionality. KEY ESG equips clients with the technology needed to make their sustainability data a competitive advantage.

KEY ESG supports the full range of Environmental, Social and Governance metrics including Scope 1, 2 and 3 carbon accounting.

Best for:

  • Large organisations and global enterprises which need a sustainability platform that empowers rapid and accurate data collection, streamlines reporting and compliance, and drives sustainability performance improvement through advanced analytics. KEY ESG is the top choice for organisations seeking to future-proof their sustainability strategies and drive data-driven performance improvements that make a real impact.

2. Workiva

Workiva excels in versatile and adaptable sustainability data management for different businesses. This software leverages advanced data processing to efficiently handle large and complex ESG datasets, automating data collection and ensuring accurate reporting and analytics. Organisations can rely on Workiva for ESG reporting, productivity optimisation and data management. World-renowned companies like Google and Chevron have used this platform for ESG compliance

3. SustainIQ

SustainIQ offers advanced ESG management for organisations with real-time tracking and analysis. It enables organisations to gather, monitor, and instantly analyse ESG data. This software uses a four-method approach: responsible procurement, environmental management, people, health and diversity and community engagement and partnering. Organisations can track over 200 metrics from one dashboard, simplifying transparent ESG reporting.

4. Osapiens

Osapiens offers advanced sustainability management software that provides businesses with the tools to track, analyze, and reduce their environmental impact. Its platform integrates carbon accounting software and sustainability solutions across the entire value chain to support transparency and maintain regulatory requirements. This software also delivers capabilities to manage supplier relationships, audit your procurement processes while ensuring that all products – digital and physical – are compliant and traceable.

5. Diligent

Diligent’s ESG platform serves organisations in diverse industries, including retail, technology, manufacturing, energy, healthcare, real estate, and the federal government. This software’s sophisticated capabilities make it versatile, delivering solutions for streamlined communication, ESG governance, sustainability risk management, information security, market intelligence, data auditing and reporting, and compliance. In addition, Diligent also provides certification courses to educate teams on ESG and cybersecurity

6. SAP Sustainability Tower

SAP Sustainability Tower is a comprehensive suite of sustainability management tools that helps businesses accelerate their sustainability journey. The software provides powerful analytics to track environmental and social impacts, from carbon accounting software to greenhouse gas reduction initiatives. It integrates seamlessly into existing business systems, enabling organizations to drive sustainability solutions while optimizing business value across operations.

7. Sphera

Sphera is a leading provider of sustainability solutions that empowers businesses to manage and reduce their environmental footprint. The platform offers a robust set of management tools that span the entire value chain, from environmental impact assessments to carbon accounting software. Sphera helps companies optimize their sustainability progress by identifying key areas for improvement, ensuring measurable results in greenhouse gas emissions reduction and environmental compliance.

8. Novisto

Novisto is dedicated to helping organisations streamline data collection and analysis. This solution accelerates sustainability efforts through three main focus areas: data collection, management, and reporting. Organisations can rely on Novisto for complex ESG data infrastructures and enterprise-grade security, ensuring compliance with industry regulations. Novisto works with companies across various industries, including technology, banking, insurance, retail and manufacturing.

9. Novata

Novata offers comprehensive ESG software for private equity and venture capital firms. The platform is tailored for private markets, addressing private companies’ and investors’ unique ESG reporting needs. It simplifies reporting, focusing on features such as data collection, project management, due diligence and regulations. Its user-friendly interface enhances transparency and efficiency in ESG data management.

10. Apiday

Apiday provides comprehensive ESG reporting solutions. It supports reporting requirements for most ESG regulations and frameworks, including the Corporate Sustainability Reporting Directive (CSRD) and the EU taxonomy, aligning with the objectives of the EU Green Deal. Apiday specifically services venture capital and private equity enterprises and scale-ups. Over 2000 companies have worked with this ESG software, including SpeedInvest, HV Capital and FM Logistic.

Key features of sustainability reporting software

When selecting ESG reporting software, it’s crucial to consider several key features that can significantly enhance your organisation’s reporting capabilities and overall ESG performance.

For a procurement guide to help you choose the right sustainability management software for your business, download KEY ESG’s Sustainability Software Buyer’s Guide.

Here are the essential features to look for:

  1. Data collection and management: ESG software should allow you to gather ESG data from various sources, including internal systems, external data providers, and manual inputs.
  2. ESG reporting capabilities: The software must generate detailed ESG reports in PDF, Excel, and CSV. formats. It’s also beneficial to have API integrations available to stream ESG data into any chosen BI reporting platform.
  3. Data accuracy and validation: Look for software that includes built-in data validation and accuracy checks. This feature helps maintain the integrity of your ESG data, providing confidence in the reliability of your reports.
  4. Streamlined reporting: Features like automated report generation can save significant time and effort. This allows your team to focus on analysing the data and making informed decisions rather than getting bogged down in the mechanics of report creation.
  5. Integration with other systems: Integrating with other systems, such as financial reporting platforms, simplifies data collection.
  6. Data analytics and insights: Advanced data analytics and insights capabilities help identify trends, risks, and opportunities for improvement.
  7. Compliance management: ESG software should ensure that your business always complies with the latest applicable regulations.
  8. Carbon accounting: The software should support carbon accounting to accurately track and report scope 1,2 and 3 carbon emissions. This will allow your company to track and set targets and achieve decarbonisation goals.
  9. Automated audit trail: An audit trail and activity log ensure that your ESG reporting is transparent and adheres to regulatory requirements.‍
  10. User-friendly interface: The software should be easy to use and navigate, with clear and intuitive reporting and data that is easily accessible and understandable.

How to choose the best sustainability reporting software

Selecting the best ESG reporting software for your organisation can be complex, so here are the key steps to consider when selecting the right ESG software.

Define your needs

Define your organisation’s ESG reporting needs and goals. Consider what specific metrics you need to track, the regulatory requirements you must meet, and the internal and external stakeholders who will use the reports.

Research and shortlist

Conduct thorough research to identify potential ESG reporting software vendors. Create a shortlist of vendors offering features and capabilities that align with your needs.

Evaluate features and functionality

Evaluate each shortlisted vendor’s features and functionality. Look for key features such as data collection, reporting capabilities, data accuracy, and integration with other systems.

Assess data accuracy and validation

Assess each vendor’s data accuracy and validation capabilities. Ensure that the software can provide reliable and accurate ESG data, which is critical for credible reporting.

Consider integration and customisation

Consider each vendor’s integration and customisation capabilities. Your ESG software should seamlessly integrate with your existing systems and offer customisable reporting templates to meet your requirements.

Evaluate user experience

Evaluate each vendor’s user experience and interface. A user-friendly interface ensures your team can easily navigate and use the software.

Assess risk management and compliance

Assess each vendor’s risk management and compliance capabilities. The software should help you identify and mitigate ESG-related risks and ensure compliance with regulatory requirements.

Request demos and trials

Request demos and trials from shortlisted vendors. This hands-on experience will help you understand how the software works and whether it meets your needs.

Evaluate Customer Support

Evaluate each vendor’s customer support and service. Reliable customer support is crucial for addressing any issues and ensuring smooth operation.

Make a decision

Based on your evaluation and selection criteria, choose the ESG reporting software that best meets your organisation’s needs.

By following these steps, you can choose the best ESG reporting software for your organisation, ensuring you have the tools to manage and report on your ESG initiatives effectively.

Elevate your sustainability reporting

Choosing the right ESG software can help you improve your business in many ways, including

  • Compliance
  • Risk management
  • Stakeholder engagement
  • Reputation management
  • Operational efficiency
  • Cost savings

Choosing the right ESG software solutions can help your organisation achieve these. KEY ESG stands out as the top choice. Our platform simplifies ESG data management, focusing on streamlined data collection, reporting, compliance, and optimisation.

Want to discover how KEY ESG can streamline your sustainability management? Request a demo of our platform to transform your ESG strategy.

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