7 criteria for ESG software selection

Companies are beginning to look at ESG reporting solutions for a variety of reasons, but the main one is efficient data collection to save valuable time and resources.

A key benefit of specialist sustainability reporting solutions is that they minimise manual data entry, streamlining processes and increasing productivity.

ESG reporting software enhances data transparency and accuracy by ensuring that the information in reports is reliable, credible and audit-ready. They enable improved calculation and analysis of key performance indicators for ESG activities, providing valuable insights that help inform decision making.

But how do you choose the right ESG solution for your company?

Read more: What is ESG software?

Key criteria for selecting ESG software

There are several key factors to consider when selecting sustainability reporting software.

1. Data collection and processing

Data collection is the foundation for efficient operations and better visibility. It is critical to consider from what sources the solution will collect data and to what extent this process can be automated.

It is also important to consider what security certifications the software vendor holds to be sure of where and how information is stored.

2. Integration with existing software systems

Integration capabilities with existing software and tools within the company should also be considered. It is a good idea for the solution to seamlessly integrate with other business software in the company, e.g. ERP and BI systems.

3. Compliance with standards

When evaluating a solution, consider which specific environmental, social and governance components to prioritize and which specific key performance indicators (KPIs) you will track.

Explore what capabilities the solution should have to track the selected metrics as well as your progress against evolving standards and ensure you are compliant with the latest regulations.

Read more: The most important ESG metrics for CFOs

4. Data download and reporting

As with data collection, data extraction and reporting are critical to the entire ESG reporting process. It is important to consider how you will download the information and what formats you need, e.g. Word, PowerPoint, XBRL, XML and HTML for direct download to third party assessment portals such as CSA, CDP etc.

5. Ease of use

6. Range of functionalities

Consider the scope of the functionalities of the chosen solution and ensure that it covers the entire ESG reporting process, from data collection and analysis, to report generation and distribution, including the mark-up required by regulation.

A comprehensive solution should save time and increase the efficiency of the ESG reporting process.

7. Reliable expert support and system development

Don’t forget about the importance of reliable expert support for the implemented solution.

Look for a software vendor that offers responsive post-project support to assist you with problems or system development needs.

Read more: Why post-project development and expert support are key to business software effectiveness

Need support selecting an ESG solution?

You’re not alone. Many companies are still navigating the process.

Don’t hesitate to contact us, our consultants are here to assist.