ESG Management Software: Everything You Need to Track, Report & Improve
Introduction
ESG management software brings environmental, social and governance information together so teams can monitor progress and prepare reports with fewer manual steps.
These platforms replace spreadsheets with structured workflows, pulling ESG data into one system to support decisions and compliance needs. Many organizations now use esg software to meet reporting requirements and maintain consistent data quality across their operations.
This article outlines the full lifecycle of ESG management, covering risk, analytics, governance and sustainability performance, and includes points to consider when selecting esg software solutions for your organization.
What is ESG management software: definition & core functions
Definition
ESG management software acts as a shared system for information such as emissions, workforce details and governance records. It supports esg data collection, automating inputs from existing business systems and maintaining data accuracy.
Many platforms include carbon accounting software functions so organizations can calculate their carbon footprint and keep information aligned with recognized methods.
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Core functionalities
Data collection & integration
Modern management software connects with finance, HR and energy systems to streamline data collection. Some offer automated links for sustainability data and environmental management information.
Carbon accounting
Tools include carbon accounting features for Scope 1–3 and track progress across the entire value chain. This supports carbon accounting and carbon emissions reviews throughout the year.
Reporting and templates
ESG reporting software offers layouts that meet reporting requirements for regulators and investors. These reporting processes often include report creation features for teams preparing annual disclosures.
Dashboards & analytics
Dashboards summarize esg metrics, sustainability metrics and sustainability performance. Advanced analytics may provide actionable insights and comparison views to pinpoint improvement areas.
Workflows & accountability
Role-based workflows maintain data management structure, assigning responsibilities and preserving audit-ready records for esg governance needs.
Planning with ESG software: targets, materiality and roadmap
Materiality assessment
A materiality assessment identifies which ESG topics matter most for your organization and stakeholders. ESG management tools collect stakeholder feedback, score topics and store results. Many platforms include templates for double materiality assessments.
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Target setting
Organizations can enter emission-reduction or other ESG targets into the system. By comparing with a baseline year and tracking progress automatically, software lets teams see where adjustments are needed.
Roadmap and project planning
Translate targets into assigned projects with clear milestones and budgets. Link those projects with expected emission savings or resource efficiency gains so outcomes remain visible.
Risk & compliance: regulatory reporting and Scope 3 management
Regulatory reporting requirements
Regulations and investor expectations have increased. Many companies prepare for new disclosure obligations. Software helps by mapping data to reporting requirements and producing audit-ready exports for compliance needs.
Scope 3 emissions and supplier engagement
Scope 3 often makes up the bulk of a company’s emissions. Software assists in sending questionnaires to suppliers, collecting responses and modelling emissions where supplier data is missing. Supplier engagement modules help manage outreach, tasks and data quality over time.
Risk registers and scenario planning
Some platforms include features to link ESG risks with business units, financial exposure and mitigation measures. Scenario outputs help management understand risk exposure under different circumstances.
Analytics & reporting: dashboards, carbon accounting and benchmark comparison
Measurement and carbon accounting
Software uses recognized methods for greenhouse-gas calculations. Look for built-in emission factors, calculation logs and ability to recalculate when methodology changes.
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Dashboards and reporting outputs
Dashboards display trends, progress against targets and important ESG metrics. Reporting modules produce tables and narrative outputs aligned with disclosure frameworks. That reduces manual workload for audit or external report preparation.
Benchmarking and peer comparison
Some tools let users compare performance against sector peers, industry metrics or internal divisions. Benchmarking helps set realistic goals and report performance in context.
Governance & workflows: data governance, roles and audit-ready records
Data governance and audit trails
Platforms should keep source documents (invoices, meter readings), record who changed data and when, and preserve version history. This supports audit and verification needs.
Roles and permissions
Assign roles to departments (finance, sustainability, operations) with defined permissions. Role-based workflows reduce risk of accidental edits and keep responsibility clear.
System connections and scalability
Choose tools that connect to enterprise resource planning, energy systems, HR and procurement modules. That reduces manual upload and improves data quality as operations grow.
Comparison: top ESG software features at a glance
| Vendor / Platform | Strength / Focus | Typical Use Case | Notable Feature |
|---|---|---|---|
| Persefoni | Carbon accounting & regulatory reporting | Companies requiring finance-grade emissions data | GHG accounting, regulatory exports, disclosure-ready outputs |
| Plan A | Carbon management & compliance readiness | Organizations working on carbon automation and disclosure obligations | Scope 1–3 automation, supplier tools, compliance templates |
| Workiva | Reporting automation & connected reports | Firms with complex reporting and audit-control needs | Drag-and-drop reports, regulatory-filing capabilities |
| Novata | Portfolio / private-markets ESG reporting | Asset managers and fund managers | ramework builder, consolidated ESG data across assets |
| Novisto | End-to-end ESG management | Organizations that want centralized data and reporting | Data collection, progress tracking, report generation |
| IBM Envizi | Enterprise-scale ESG platform | Large firms with many data sources | Extensive integrations, system of record, scalability |
| Diligent | Governance and ESG reporting | Boards, governance teams, firms combining governance and ESG | Data unification, reporting, board-level dashboards |
| Benchmark ESG / Gensuite | EHS + ESG management | Organizations with environmental health & safety needs | Combined EHS and ESG metrics, KPI dashboards |
| Sametrica | AI-driven ESG data analytics | Investment firms, data-heavy users | Automated data analysis, visuals, reporting |
Use this table when drafting a procurement brief. Selecting 2–3 vendors depends on whether carbon accounting accuracy, enterprise-scale integrations or reporting automation matters most.
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Case study: lifecycle use of ESG management software
Situation
A mid-sized manufacturer relied on spreadsheets to track energy use and supplier data. They needed a single source for compliance and a method to track Scope 3 emissions.
Adoption and planning
The sustainability team ran a materiality assessment via the platform, set emission-reduction targets and imported utility data and supplier invoices. They assigned responsibility for each target and linked actions with projected emission savings.
Risk management and supplier engagement
Using supplier modules, they sent standard questionnaires to key suppliers and used modelling when supplier data was missing.
Analytics and reporting
The sustainability lead used dashboards to present emissions trends, show progress against targets and generate a board-ready report. Data exports were audit-ready.
Governance and outcome
Audit trails and document storage met verification requirements. The organization published its ESG report with reduced manual effort and clearer audit evidence.
Practical takeaways
- Start with material topics and supplier engagement.
- Connect finance and energy systems early to avoid manual work.
- Use templates for disclosure frameworks to reduce workload.
How to choose ESG software for your organization
Checklist for tool selection
- Confirms automatic calculations for Scope 1–3 and keeps audit trails.
- Includes connectors for ERP, HR and energy-management systems.
- Generates exports aligned with regulatory disclosure frameworks.
- Offers role-based permissions and data-governance features.
- Familiar with audit and verification processes.
Pilot and evaluation suggestion
Run a short trial using one department’s data, calculate baseline emissions, and export a draft report mapped to the relevant framework. Involve finance, procurement and external assurance partners in the review.
Board procurement summary suggestion
Compare cost against staff hours saved, manual error reduction and compliance risk mitigation. Use dashboard visuals to show differences compared with the spreadsheet-based process.
Summary
ESG management software brings ESG data, carbon accounting and reporting into one system for organizations of all sizes. The best ESG software depends on whether you need sustainability management, strong reporting capabilities or streamlined data collection.
Running a small pilot can show which comprehensive solution suits your sustainability journey and supports corporate sustainability over time.
Frequently Asked Questions (FAQs)
What is ESG management software?
ESG or sustainability management software is a tool used by companies to track and manage environmental, social, and governance activities. It collects data on emissions, waste, diversity, and governance practices. The software helps produce reports that meet ESG reporting standards and guides better decision-making.
What is the best ESG software?
The best ESG software depends on company needs, such as reporting requirements, team size, and budget. Popular options often include features for tracking sustainability metrics, reporting for frameworks, and dashboards for data analysis. Companies usually compare software based on usability and compliance capabilities.
What are the big 4 of ESG?
Traditionally, ESG has three areas: Environmental, Social, and Governance. Some frameworks include a fourth category, Prosperity or Performance, to combine financial and sustainability measures. These four areas give a broad view of a company’s impact.
What is the difference between ERP and ESG?
ERP systems manage core business processes like finance, HR, and operations. ESG looks at environmental, social, and governance factors outside core operations. ESG software focuses on tracking sustainability, ethical practices, and reporting metrics.
What is an ESG management system?
An ESG management system is a structured method for companies to collect ESG data, analyze performance, and create reports. It involves processes, policies, and tools to manage ESG initiatives. This system helps companies plan for long-term ESG outcomes.
What are the 4 pillars of ESG?
The main pillars are Environmental, Social, Governance, and sometimes Prosperity or Performance. Environmental measures energy, emissions, and resource use. Social includes workforce, community, and diversity practices. Governance looks at board structure, policies, and ethical management.
What is the ESG system?
The ESG system combines frameworks and internal processes to gather, analyze, and report ESG data. It helps companies manage risks, make strategic decisions, and track sustainability and governance outcomes.
What are the 7 principles of ESG?
There is no single universal list of seven ESG principles. Some companies define internal principles under environmental, social, and governance areas. These principles guide how ESG is applied in daily operations.
What is an ESG tool?
An ESG tool is software that collects ESG data, tracks performance, and produces reports. Companies use it to manage environmental impact, social practices, and governance structures. Tools can also help meet reporting requirements.
How to do an ESG analysis?
ESG analysis involves reviewing environmental, social, and governance data for a company. This includes emissions, energy use, diversity, ethics, and board structure. The analysis identifies risks, opportunities, and areas for improvement.
What are the 5 C's of sustainability?
The 5 C's stand for Clean, Community, Culture, Care, and Commerce. They highlight environmental, social, cultural, and governance aspects of sustainability. Companies can use these principles to shape sustainable practices.
What is sustainability software?
Sustainability management software tracks resource use, emissions, waste, and energy efficiency. It focuses on environmental performance and can overlap with ESG software. Companies use it to measure environmental impact and manage sustainability initiatives.
