: Your Guide to Sustainable Reporting
ESG compliance software helps companies track, analyze, and report on environmental, social, and governance performance. Here's what you need to know:
- What it does: Collects ESG data, analyzes performance, generates reports
- Why it matters: 98% of S&P 500 companies now publish ESG reports
- Key drivers: Regulatory pressure, investor demand, risk management, competitive edge
- Top options:
- Climatta: User-friendly, automated data collection
- Workiva: Comprehensive reporting, steep learning curve
- IBM Envizi: Handles 500+ data types, needs tech savvy
- Diligent ESG: Covers 2,000+ emissions sources, some UI issues
Quick Comparison:
| Software | Best For | Key Strength | Potential Drawback |
|---|---|---|---|
| Climatta | SMEs | Easy to use | Limited features |
| Workiva | Large enterprises | Covers major frameworks | Complex to learn |
| IBM Envizi | Data-heavy orgs | Wide data coverage | May be overkill for small teams |
| Diligent ESG | Emissions-focused | Extensive emissions data | UI could be improved |
Choose based on your company size, reporting needs, and team's tech skills. The right software can streamline your ESG reporting and boost your sustainability efforts.
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1. Climatta
Climatta is shaking up the ESG compliance software market. Think of it as the "TurboTax and QuickBooks for ESG compliance." This SaaS platform makes ESG reporting a breeze for companies, no matter their size.
What sets Climatta apart? It's all about automation. Instead of manually inputting data, Climatta pulls sustainability info from various sources automatically. This isn't just a time-saver - it also cuts down on those pesky human errors.
But Climatta isn't just about collecting data. It's a one-stop-shop for ESG reporting. The platform offers a central dashboard where companies can whip up comprehensive reports. While they don't spell out which reporting frameworks they support, it's a safe bet that major players like GRI, SASB, and TCFD are in the mix.
One of Climatta's big selling points is how easily it plays with other systems. No need for new hardware - just plug it in and you're good to go. And if you're on the Pro plan, you can even link up with utility providers for a deeper dive into your energy use.
Climatta goes beyond just ticking boxes for compliance. It gives you the lowdown on your energy consumption and carbon footprint. This isn't just about following rules - it's about boosting your sustainability game.
The Pro plan takes things up a notch with advanced analytics. Want to set ambitious emissions targets? This feature's got your back.
Iñaki, one of the brains behind Climatta, puts it like this:
"We built Climatta to be as easy as TurboTax and as thorough as QuickBooks. We want to make ESG compliance doable for all businesses, not just the ones with big sustainability teams."
While Climatta keeps its pricing under wraps, they offer two main flavors:
| Plan | What You Get |
|---|---|
| Basic | Auto ESG data collection, central dashboard, quick setup, no hardware needed |
| Pro | All Basic goodies plus detailed carbon footprint analysis and utility provider hookup |
2. Workiva
Workiva has become a big player in ESG compliance software. Their platform covers the whole ESG reporting process from start to finish. Let's look at what makes Workiva special:
Data Collection
Workiva's platform is great at gathering ESG data. It can handle numbers and descriptions, which you need for a complete ESG report. The cool part? Their ESG Data Collection spreadsheet. It lets you organize ESG data by specific topics and years.
Think about a big company with offices all over the world. With Workiva, they can easily collect carbon emission data from every location. This keeps everything consistent and accurate, no matter when they're reporting.
Reporting Options
Workiva really shines when it comes to reporting. They support all the big ESG frameworks and standards like GRI, SASB, TCFD, and UNSDG. This is huge because different people often want reports in different formats.
They also have this neat tool called ESG Explorer. It lets you look through content from various ESG frameworks and standards. This makes it way easier to match your reporting with specific requirements.
System Connections
One of Workiva's best features is how it works with other systems. It can connect to different data sources, which means less manual data entry and fewer mistakes. This is super helpful for big organizations with lots of data in different places.
Here's something cool: Workiva can link up directly with utility providers. This gives you real-time, accurate data on energy use, which is great for environmental reporting.
Data Analysis
Workiva doesn't just collect and report data. It analyzes it too. Their ESG Factbook spreadsheet automatically crunches numbers based on the data you collect. This gives you insights that can help with big decisions.
The platform also makes sure your ESG disclosures are ready for audits. This is important as regulations get stricter. It means you can trace all your reported data back to its source.
Over 3,700 organizations in more than 180 countries use Workiva. That's a lot of trust in their tech. But it's not all smooth sailing. Some users say it takes a while to learn:
"There is a steep learning curve that is required."
Workiva tries to help with this by offering training and resources in their Learning Hub. This helps teams get better at using the platform.
While Workiva offers a lot, it's not perfect. Some users have run into glitches and aren't thrilled with customer service. One user on G2 said:
"It does feel like a giant organization and at times you can't easily speak to someone."
Even with these issues, many organizations still choose Workiva. Why? Because it can handle complex ESG reporting needs. It does everything in one place - collecting data, analyzing it, and reporting it. For companies serious about ESG compliance, that's a big deal.
3. IBM Envizi
IBM Envizi is a heavy hitter in ESG compliance software. It's a one-stop shop for managing sustainability performance. Here's what makes it tick:
Data Collection
IBM Envizi is a data-gathering machine. It can handle over 500 types of data, both qualitative and quantitative. This covers pretty much everything you need for sustainability reporting.
Take IKANO GROUP, for example. They used IBM Envizi to track a whopping 15,685 data types for their CSRD reporting. Talk about a time-saver!
Reporting Options
When it comes to reporting, IBM Envizi is like a Swiss Army knife. It works with all sorts of ESG frameworks and standards. You can whip up reports for internal use or external requirements, no sweat.
They've even rolled out a new EU CSRD reporting tool. It's like a fast track to CSRD compliance. As Kendra DeKeyrel from IBM puts it:
"IBM Envizi offers support for customers through their entire sustainability journey, from ESG data capture, to reporting to performance improvement."
System Connections
IBM Envizi plays well with others. It can hook up to various operational systems, giving you real-time insights. It's like having a central command center for all your ESG data and GHG calculations.
BanFast Förvaltning AB is a good example. They used IBM Envizi to speed up their sustainability reporting. By connecting it to their existing systems, they made the whole process smoother and more accurate.
Data Analysis
IBM Envizi isn't just about collecting data - it's about making sense of it too. It comes with built-in analytics tools to help you spot opportunities and track your progress.
GPT Group used these features to get a better handle on their ESG data. It helped them make smarter decisions about their sustainability efforts.
Now, it's not all sunshine and rainbows. Some users say you need a bit of tech know-how to get the most out of IBM Envizi. And if you're a smaller outfit, it might be a bit much - both in terms of features and cost.
But for many big players serious about ESG compliance, IBM Envizi is still a top pick. It's a powerful tool for tackling the complex world of ESG reporting and compliance.
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4. Diligent ESG
Diligent ESG is a top-tier ESG compliance software that helps organizations navigate the tricky waters of sustainability reporting and performance management. Here's what makes it stand out:
Data Collection
Diligent ESG is a data-gathering powerhouse. It covers over 2,000 emissions sources across all Scope 1, 2, and 3 emissions. From fuel consumption to supply chain activities, it's got you covered.
But here's the kicker: it automatically updates 70,000 emissions factors. That means you're always working with fresh data. It's a game-changer for accurate GHG reporting and staying on top of regulations.
Reporting Options
Think of Diligent ESG as your reporting Swiss Army knife. It supports all major global Carbon and Sustainability reporting schemes. GRI? SASB? No problem.
The platform's report authoring tool is where the magic happens. Teams can work together on sustainability reports, keeping everyone in sync. It's perfect for big organizations with complex reporting needs.
System Connections
Diligent ESG plays well with others. It's designed to be the hub of your ESG data, connecting seamlessly with your existing systems.
The platform's API is the star of the show. It lets you send activity data straight from your internal systems to Diligent ESG. Less manual data entry, more accurate real-time reporting. What's not to love?
Data Analysis
Diligent ESG isn't just about collecting and reporting data. It's about making sense of it all. The platform offers:
- Automatic KPI calculations
- Real-time insights
- A solid audit trail for traceability and compliance
These features help you not just report on ESG performance, but actually improve it.
And let's talk money. According to a Forrester report, Diligent ESG can deliver a 167% ROI and $301K NPV over three years. That's good for the planet AND your wallet.
Don't just take our word for it. Here's what Jane Callan, Health Safety and Sustainability Manager at DWF Group, had to say:
"The flexibility of the Diligent ESG System is fantastic. The dashboards and reports are really insightful, and the data being cleansed during data entry or upload is a real bonus."
Of course, no system is perfect. Some users have mentioned that the TPRM functionality and overall UI/UX could use some work. But with support that typically responds in less than an hour, Diligent ESG is quick to address any issues that pop up.
Strengths and Limitations
Let's dive into how Climatta, Workiva, IBM Envizi, and Diligent ESG compare in the ESG compliance software arena.
Climatta
Climatta's like the new kid on the block. They've got some cool tricks:
- Automated data collection? Check. Less manual work, fewer mistakes.
- User-friendly interface that's been called "TurboTax for ESG compliance". Nice.
- Quick setup with no hardware needed.
- One dashboard for all your ESG reporting needs.
But being new has its downsides:
- Might not have all the bells and whistles of the old-timers.
- Not much info on which reporting frameworks they support.
Workiva
Workiva's been around the block:
- Covers the whole ESG reporting process.
- Plays nice with the big frameworks (GRI, SASB, TCFD, UNSDG).
- Packs a punch with data analysis, thanks to their ESG Factbook spreadsheet.
- Used by over 3,700 organizations across 180+ countries.
But it's not all smooth sailing:
- Some users say it's tough to learn.
- Occasional hiccups and customer service gripes.
IBM Envizi
IBM brings the big guns:
- Handles over 500 types of data for your sustainability reports.
- Supports various ESG frameworks and standards.
- Real-time insights through system integrations.
- Powerful analytics for decision-making.
But it might be overkill for some:
- Could be too complex for smaller outfits.
- You'll need some tech know-how to get the most out of it.
Diligent ESG
Diligent's got some impressive stats:
- Covers 2,000+ emissions sources across all scopes.
- Automatically updates 70,000 emissions factors.
- Robust API for easy system integration.
- Claims to deliver 167% ROI, according to Forrester.
But it's not perfect:
- TPRM functionality could use some work.
- Some users aren't fans of the UI/UX.
Here's a quick side-by-side look:
| Software | Data Collection | Reporting Options | System Integration | User Experience |
|---|---|---|---|---|
| Climatta | Automated, hands-off | Comprehensive, details fuzzy | Easy setup, no hardware | User-friendly, "TurboTax-like" |
| Workiva | Comprehensive, with ESG Data Collection spreadsheet | All major frameworks | Strong integration | Steep learning curve |
| IBM Envizi | 500+ data types, qual and quant | Various frameworks, new EU CSRD tool | Connects to operational systems | Needs some tech savvy |
| Diligent ESG | 2,000+ emissions sources, auto-updates factors | Major global schemes | Strong API | Some UI/UX grumbles |
These off-the-shelf solutions are great, but they're not one-size-fits-all. The ESG software market's booming - expected to hit $1.9 billion by 2028 - and some companies are going custom.
Take Unilever. They built a custom ESG system to keep tabs on their global sustainability efforts. Nestle did something similar to track their environmental impact.
When you're shopping for ESG software, think about:
- Does it fit your ESG goals?
- Will it play nice with your current systems?
- How easy is it to use?
- How many emissions factors does it cover?
- Can you customize it?
Your perfect match depends on your company's size, industry, and ESG goals. As Jane Callan from DWF Group said about Diligent ESG:
"The flexibility of the Diligent ESG System is fantastic. The dashboards and reports are really insightful, and the data being cleansed during data entry or upload is a real bonus."
Which Software Should You Choose?
Picking the right ESG compliance software can make or break your sustainability efforts. Let's look at the options based on company size and needs:
For Small to Medium-sized Enterprises (SMEs)
If you're an SME, Climatta might be your go-to. Think of it as the "TurboTax for ESG compliance." It's perfect if you don't have a dedicated sustainability team. Climatta offers:
- Automated data collection
- A central ESG data dashboard
- Quick setup, no hardware needed
But heads up: Climatta is the new kid on the block. It's fresh, but might lack some bells and whistles of older platforms.
For Large Enterprises
Got a big company with complex ESG needs? Workiva or IBM Envizi might be more your speed.
Workiva is great if you need:
- ESG reporting across multiple frameworks (GRI, SASB, TCFD, UNSDG)
- Solid data analysis tools
- Lots of integration options
It's used by over 3,700 organizations in 180+ countries. That's a lot of trust. But be ready for a steeper learning curve.
IBM Envizi shines with:
- Handling tons of data types (500+)
- Real-time insights through integrations
- Powerful analytics for decision-making
IKANO GROUP used IBM Envizi to track 15,685 data types for CSRD reporting. That's a lot of data!
For Emissions-Focused Companies
If you're all about emissions and decarbonization, check out Diligent ESG. It offers:
- Coverage of 2,000+ emissions sources across all scopes
- Auto-updates of 70,000 emissions factors
- A robust API for easy integration
Forrester says Diligent ESG can give you a 167% ROI over three years. Not too shabby for your wallet.
Quick Comparison
| Software | Best For | Key Strength | Potential Drawback |
|---|---|---|---|
| Climatta | SMEs | User-friendly, automated | Limited advanced features |
| Workiva | Large enterprises | Comprehensive reporting | Steep learning curve |
| IBM Envizi | Data-heavy orgs | Wide data coverage | Complex for small teams |
| Diligent ESG | Emissions-focused | Extensive emissions data | Some UI/UX issues |
Your best pick depends on your specific needs. As Jane Callan from DWF Group said about Diligent ESG:
"The flexibility of the Diligent ESG System is fantastic. The dashboards and reports are really insightful, and the data being cleansed during data entry or upload is a real bonus."
When deciding, think about:
- Your company's size and ESG maturity
- Specific reporting needs
- How it'll fit with your current systems
- Your budget
- Your team's tech skills
Choose wisely, and you'll be on your way to ESG success!
FAQs
What is an ESG reporting tool?
An ESG reporting tool is software that helps companies track their environmental, social, and governance (ESG) data. It's like a Swiss Army knife for sustainability reporting.
Here's the deal with ESG reporting tools:
They're designed to make life easier for companies dealing with ESG data. How? By helping them collect, crunch, and report on all that sustainability info.
SAP puts it this way:
"ESG software is a tool that helps businesses collect, manage, analyze, and report on their environmental, social, and governance (ESG) data."
These tools are becoming a big deal. Why? Because more and more companies are feeling the heat to up their sustainability game.
Check out these numbers:
- Over 90% of S&P 500 companies are already doing ESG reporting.
- ESG assets worldwide? They were expected to hit $41 trillion in 2022. And they're on track to reach $50 trillion by 2025.
So, what should you look for in an ESG reporting tool? Here are some key features:
- Handles all your ESG data like a pro
- Gives you solid analytics
- Lets you customize your reports
- Easy to use and can grow with your company
- Plays nice with international ESG reporting standards
But here's the thing: ESG reporting isn't just about ticking boxes. AuditBoard nails it:
"The primary benefit of ESG reporting is trust - building trust through ESG reporting with stakeholders, investors, customers, capital markets, regulators, and the wider community."
Bottom line? ESG reporting tools are becoming must-haves for companies serious about sustainability. They help you gather data, spot trends, and show the world you mean business when it comes to ESG.
