Top 5 Best ESG Reporting Software in 2025

What is ESG Reporting Software?

ESG reporting software is your secret weapon for transparent and efficient sustainability reporting. It centralizes data collection for environmental, social, and governance (ESG) metrics, saving you time and ensuring accuracy.

It can generate standardized reports for stakeholders and regulators with ease. Gain valuable insights to set and track sustainability goals, improve decision-making, and showcase your company’s commitment to ESG leadership.

How to Choose the Best ESG Reporting Software?

Selecting the right ESG reporting software is crucial for streamlining the process, ensuring accuracy, and achieving your sustainability goals. But with a plethora of options available, how do you choose the perfect solution? Here’s a comprehensive guide to help you make an informed decision:

1. Identify Your Needs:

• Data Management:
  • Does the software integrate seamlessly with your existing data systems (ERP, CRM, etc.)?
  • Can it handle complex data sets and ensure data integrity?
• Reporting Requirements:
  • Does it support the specific reporting frameworks your company needs (GRI, SASB, etc.)?
• Scalability:
  • Can the software adapt to your company’s growth and evolving reporting requirements?

2. Prioritize Functionality:

• Automation:
  • Look for features that automate data collection, report generation, and workflow management, saving you valuable time and resources.
• Data Visualization:
  • Does the software offer clear and customizable dashboards for analyzing trends and identifying areas for improvement?
• Collaboration Tools:
  • Does it facilitate collaboration between different departments involved in ESG data collection and reporting?

3. Compliance Considerations:

• Regulatory Updates:
  • Does the software stay current with evolving ESG regulations and reporting standards?
• Data Security:
  • Choose a solution with robust data security protocols to protect sensitive information.

4. Vendor Support:

• Implementation and Training:
  • Does the vendor offer comprehensive implementation and training support to ensure your team can leverage the software effectively?
• Ongoing Support:
  • Is there dedicated customer support available to address any technical issues or answer your questions?

5. Cost and ROI:

• Pricing Models:
  • Compare pricing structures (subscription, per-user, etc.) and choose one that aligns with your budget and needs.
• Return on Investment (ROI):
  • Consider the software’s potential to improve efficiency, reduce costs, and enhance your company’s ESG performance.

By carefully evaluating these key factors, you can choose the right ESG reporting software that empowers your sustainability initiatives, streamlines reporting, and positions your company for long-term success in the ever-evolving ESG landscape.

Top 5 Best ESG Reporting Software in 2025

Selecting the ideal ESG reporting software requires careful consideration of your specific needs. To kickstart your research, here’s a list of top 5 leading ESG Reporting software in 2025, categorized by their strengths:

1. Lythouse

Lythouse is a leading innovative SaaS platform designed to streamline ESG compliance, reporting, and governance. Leveraging a sophisticated AI engine, it precisely calculates Scope 1, 2, and 3 emissions. This AI-powered tool offers detailed carbon classification, enabling the accurate mapping of emission factors and categories by analyzing granular spend data.

Key Features of Lythouse:

• Accurate Emissions Calculation: Precise measurement of Scope 1, 2, and 3 emissions using advanced AI technology.
• AI gap analysis and data population: Collate disparate spend data from multiple sources like ERP, spreadsheets, and databases, and ensure data quality with automatic verification workflows.
• Global Reporting Framework Support: Compatibility with various international and regional reporting standards, including GRI, CSRD, IFRS, and SASB.
• All ESG Metrics at one place: A single source of truth for all ESG data and reporting with in-depth GHG carbon scope 3 coverage across all categories, and centralizes non-carbon categories like water, waste, social (including diversity), and governance.
• Assurance, collaboration and report export​: Ensure higher credibility and trust through comprehensive and agile approval workflows, facilitating easier collaboration for consensus and accountability, and providing extended support to third-party auditors.

Pros:

1. Ease of use
2. Reporting
3. Seamless Coordination
4. Customer Support

Cons:

1. Advanced features more suitable for large enterprises
2. Primary focus on US and EU market. Support in other markets may be limited

 

2.Greenly

Greenly is a leading climate tech company specializing in cutting-edge software solutions for mid-market businesses. Their platform helps businesses accurately measure, reduce, and offset their carbon footprint using deep industry expertise and cost-effective strategies. Greenly’s comprehensive suite of ESG compliance services include Life Cycle Assessments, CSRD Reporting, Decarbonization Strategy Development, and Sustainable Procurement.

Key Features of Greenly’s Climate Tech Solutions:

• Carbon Footprint Measurement: Precise tools for calculating and monitoring carbon emissions.
• Carbon Reduction Strategies: Tailored plans to reduce carbon emissions and improve sustainability.
• Carbon Offset Programs: Solutions to offset unavoidable emissions through verified projects.
• ESG Compliance Services: Comprehensive support for Life Cycle Assessments, CSRD Reporting, and more.
• Sustainable Procurement: Guidance on sourcing materials and services sustainably.

Pros:

1. Ease of Use
2. Efficiency Improvement
3. Reporting
4. Sustainability Monitoring

Cons:

1. Limited Functionality
2. Poor Customer Support
3. Slow Performance

 

3. Workiva

Workiva builds and delivers the world’s leading regulatory, financial, and ESG reporting solutions to meet stakeholder demands for action, transparency, and disclosure of financial and non-financial data. Their cloud-based platform simplifies the most complex reporting and disclosure challenges by streamlining processes, connecting data and teams, and ensuring consistency.

Key Features of Workiva’s Reporting Solutions:

• Regulatory Reporting: Comprehensive tools for compliance with global regulatory standards.
• Financial Reporting: Advanced solutions for accurate and transparent financial data disclosure.
• ESG Reporting: Robust capabilities for environmental, social, and governance data reporting.
• Cloud-Based Platform: Secure and scalable platform that facilitates seamless data integration and collaboration.
• Process Streamlining: Automated workflows to simplify and expedite reporting tasks.
• Data Consistency: Ensures accuracy and uniformity across all reporting outputs.

Pros:

1. Ease of Use
2. Collaboration
3. Customer Support
4. Reporting

Cons:

1. Limited Functionality
2. Technical Issues
3. Slow Performance

 

4. IBM Envizi ESG Suite

The IBM Envizi ESG Suite, delivered as an easy-to-adopt SaaS solution, offers comprehensive data and analytics software to collect, manage, and derive insights from environmental, social, and governance (ESG) data.

Key Features of IBM Envizi ESG Suite:

• Scope 1, 2 GHG Accounting + Reporting: Accurate tracking and reporting of direct and indirect GHG emissions.
• Scope 3 GHG Accounting + Reporting: Comprehensive assessment of value chain emissions.
• Target Setting + Tracking: Tools for setting, tracking, and achieving sustainability targets.
• ESG Reporting Frameworks: Compliance with leading ESG reporting standards and frameworks.
• Building Ratings + Benchmarks: Performance ratings and benchmarks for buildings.
• Value Chain Surveys + Assessments: In-depth surveys and assessments of the entire value chain.
• Utility Bill Analytics: Detailed analysis of utility consumption and costs.
• Interval Meter Analytics: Real-time analytics for energy usage.
• Sustainability Program Tracking: Monitoring and reporting on sustainability initiatives.

Pros:

1. Ease of Use
2. Reporting
3. User Interface
4. Sustainability

Cons:

1. Expensive
2. Complex Setup
3. Buggy Software

 

5. Persefoni

Persefoni is the leading Climate Disclosure & Carbon Accounting Solution. The company’s Software-as-a-Service solutions enable enterprises and financial institutions to meet stakeholder and regulatory climate disclosure requirements with the highest degrees of trust, transparency, and ease.

As the ERP of Carbon, the Persefoni platform provides users a single source of carbon truth across their organization, enabling them to manage their carbon transactions and inventory with the same rigor and confidence as their financial transactions.

Key Features of Persefoni:

• Comprehensive Carbon Accounting: Provides accurate and reliable carbon accounting, ensuring enterprises meet all regulatory requirements.
• Single Source of Carbon Truth: Offers a unified platform for managing carbon transactions and inventory, akin to financial ERP systems.
• Stakeholder and Regulatory Compliance: Facilitates seamless compliance with stakeholder and regulatory climate disclosure requirements.
• User-Friendly SaaS Platform: Designed for ease of use, promoting high adoption rates and operational efficiency.
• Transparent and Trustworthy: Ensures high levels of trust and transparency in carbon accounting and reporting processes.

Pros:

1. Customer Support
2. Ease of Use
3. Data Management
4. Document Management

Cons:

1. Software Glitches
2. Complex UI
3. Confusing Interface

Reference and source: https://www.g2.com/categories/environmental-social-and-governance-esg-reporting

 

The Benefits of Best ESG Reporting and Compliance

ESG (Environmental, Social, and Governance) reporting and compliance provide businesses with numerous advantages that extend beyond mere regulatory requirements. These benefits manifest in various facets of a company’s operations, including financial performance, reputation, and operational efficiency. Here are the key benefits of ESG reporting and compliance:

• Enhanced Reputation: ESG compliance enhances a company’s reputation among consumers, investors, and regulators. A 2022 survey by Edelman Trust Barometer reveals that 78% of consumers prefer to buy from companies that are committed to sustainable practices. This boost in reputation can lead to increased brand loyalty and customer retention.
• Access to Capital: Investors are increasingly considering ESG factors in their decision-making. According to a 2021 report by Morningstar, sustainable funds attracted $51.1 billion in investments in the U.S., highlighting the growing preference for companies with strong ESG practices. Compliant companies are more likely to attract investment from ESG-focused funds and institutions.
• Risk Mitigation: ESG reporting helps identify and mitigate risks related to environmental impact, social responsibility, and governance practices. Data from MSCI ESG Research indicates that companies with higher ESG ratings experienced 10% fewer incidents of stock price volatility, reflecting the risk mitigation benefits of robust ESG practices.
• Operational Efficiency: By adhering to ESG standards, companies can identify inefficiencies and areas for improvement within their operations. A report by McKinsey & Company shows that organizations prioritizing ESG initiatives saw a 9% improvement in energy efficiency and a 5% reduction in waste generation.
• Regulatory Compliance: Regular ESG reporting ensures compliance with evolving regulations on sustainability and corporate responsibility. The Global Reporting Initiative (GRI) states that following ESG guidelines reduces the risk of non-compliance fines and legal issues, thereby saving costs in the long run.
• Employee Engagement and Retention: Companies committed to ESG practices often see higher levels of employee engagement and retention. A Deloitte survey from 2021 found that 72% of employees consider a company’s purpose and ESG alignment when deciding where to work, leading to enhanced morale and lower turnover rates.

The tangible and intangible benefits of ESG reporting and compliance underscore its importance in modern business strategy. Companies that integrate ESG into their core operations are better positioned for long-term success and sustainability, gaining a competitive edge in today’s market. The adoption of a transparent and thorough ESG reporting framework ultimately fosters trust and drives continuous improvement across various operational dimensions.

 

Case study

Industry Case Study 1:

Company: GreenEnergy Solutions

Industry: Renewable Energy

Year: 2022

Background: GreenEnergy Solutions is a leading renewable energy company dedicated to minimizing its environmental footprint and promoting sustainable practices. With a strong commitment to ESG (Environmental, Social, and Governance) principles, the company sought to enhance its sustainability performance and reporting accuracy.

Challenge: Before implementing ESG software, GreenEnergy Solutions faced several challenges including fragmented data sources, manual reporting errors, and inefficient compliance monitoring. The company needed a streamlined solution to collect, analyze, and report ESG data accurately.

Solution: GreenEnergy Solutions adopted a comprehensive ESG software tool that integrated seamlessly with their existing data systems. This software provided automation in data collection, real-time analytics, and customizable reporting capabilities. Specifically, the software addressed areas such as energy consumption, carbon footprint, social impacts, and governance practices.

Implementation: The implementation process involved configuring the software to align with GreenEnergy Solutions’ specific ESG goals and regulatory requirements. The company invested in training programs to ensure employees could leverage the software effectively. Within six months, the software was fully operational.

Outcome:

• Improved Data Accuracy: Automation of data collection reduced human errors by 30%, leading to more reliable ESG reports.
• Enhanced Regulatory Compliance: The software ensured adherence to local and international ESG standards, mitigating risks of non-compliance fines.
• Operational Efficiency: The company identified a 15% improvement in energy efficiency and a 10% reduction in carbon emissions, thanks to data-driven insights.
• Stakeholder Trust: Transparent and comprehensive reporting bolstered investor confidence, resulting in a 25% increase in sustainable investments.

 

Industry Case Study 2:

Company: HealthCare Inc.

Industry: Healthcare

Year: 2021

Background: HealthCare Inc. is a prominent healthcare provider committed to sustainable operations and social responsibility. The company aimed to improve its ESG performance but faced difficulties in managing data from numerous departments and ensuring timely reporting.

Challenge: The primary challenges included data silos, manual data processing, and lack of real-time insights. These issues hindered HealthCare Inc.’s ability to comply with ESG regulations and communicate its sustainability efforts effectively.

Solution: HealthCare Inc. implemented a sophisticated ESG software tool designed to centralize data management, automate reporting processes, and provide real-time analytics. This software facilitated tracking of environmental metrics, social impact indicators, and governance standards.

Implementation: The company phased the software deployment by department, ensuring minimal disruption. Each phase included training sessions to equip staff with the necessary skills to utilize the tool effectively. Full implementation was completed within nine months.

Outcome:

• Centralized Data Management: Consolidation of data from various departments improved the accuracy and consistency of ESG reports.
• Automated Reporting: The automation feature decreased the time spent on reporting by 40%, freeing up resources for other sustainability initiatives.
• Real-Time Insights: Access to real-time data allowed HealthCare Inc. to make informed decisions, resulting in a 20% reduction in waste production and a 12% increase in community health outreach programs.
• Employee Engagement: Training and involvement in ESG projects led to higher employee morale and a 15% reduction in staff turnover.

 

Conclusion

In conclusion, selecting the right ESG reporting software can significantly enhance your company’s sustainability efforts by streamlining data management, ensuring compliance, and improving transparency. To further simplify your selection process, download our RFP Template for ESG Software. This will help you identify the key features and requirements essential for your organization, ensuring you choose the best solution to meet your ESG goals.

 

FAQs on Best ESG Reporting Software and Its Application

ESG (Environmental, Social, and Governance) software has become an integral tool for businesses aiming to enhance their sustainability efforts. Here are some frequently asked questions (FAQs) about ESG software and its application that provide clarity on its usage, benefits, and implementation:

1.What is ESG software?

ESG software is a technology solution designed to help companies collect, manage, and report data related to their environmental, social, and governance performance. It facilitates compliance with regulatory requirements and helps businesses achieve their sustainability goals.

2. How does ESG software work?

ESG software integrates with various data sources within a company to gather relevant ESG metrics. It uses analytics and reporting tools to assess performance against predefined ESG standards and generates reports for stakeholders. According to a 2022 market study by Gartner, 65% of businesses utilizing ESG software noted improved data accuracy and reporting efficiency.

3. What are the primary benefits of using ESG software?

Improved Data Accuracy: Automation reduces human errors in data collection and reporting.

Regulatory Compliance: Ensures adherence to local and international ESG regulations.

Enhanced Stakeholder Communication: Provides transparent and comprehensive ESG reports to investors, customers, and regulatory bodies.

Operational Efficiency: Identifies areas for improvement and tracks progress over time.

4. Which industries benefit the most from ESG software?

Industries such as manufacturing, energy, finance, and healthcare benefit significantly from ESG software. These sectors often face stringent regulatory requirements and can leverage the software to ensure compliance and improve sustainability performance. For instance, a report by PwC in 2021 indicated that 80% of energy companies using ESG software saw improved sustainability metrics within a year.

5. What features should I look for in ESG software?

Data Integration: Ability to connect with various data sources and systems.

Real-time Analytics: Provides up-to-date insights into ESG performance.

Customizable Reporting: Supports the generation of tailored reports for different stakeholders.

Compliance Tracking: Monitors adherence to relevant regulations and standards.

6. How much does ESG software cost?

The cost of ESG software varies based on features, scalability, and vendor. Basic packages can start from $5,000 annually, while more comprehensive solutions can go upwards of $50,000 per year. A 2021 survey by Verdantix found that 70% of companies consider the investment in ESG software as crucial for long-term sustainability and compliance.

7. Are there any challenges in implementing ESG software?

Challenges include data integration complexities, initial setup costs, and the need for employee training to effectively use the software. However, these challenges can be mitigated with proper planning and vendor support.