Verdantix Benchmark Reveals 11 Leading ESG Reporting And Data Management Software Providers

Verdantix Benchmark Reveals 11 Leading ESG Reporting And Data Management Software Providers

London, UK. Verdantix, a purpose-driven research firm, has released its first Green Quadrant report on ESG Reporting and Data Management Software, identifying 11 software providers – Benchmark Gensuite, Cority, Diligent, IBM, Intelex, Nasdaq, Sphera, UL Solutions, VelocityEHS, Wolters Kluwer and Workiva – as Leaders in the market. With mounting regulatory requirements and growing stakeholder pressure, organizations worldwide are recognizing the importance of enhancing their sustainability programmes, driving a surge in demand for innovative software solutions. Recent global events such as the COVID-19 pandemic and the Russian invasion of Ukraine have further underscored the need for robust ESG reporting and data management capabilities.

The report, Green Quadrant: ESG Reporting And Data Management Software, is an essential guide for organizations seeking to invest in ESG reporting software. It offers valuable insights and in-depth analysis to help corporate executives select the most suitable solution for their specific needs. Key findings from the report reveal: 

• ESG reporting and data management software must aggregate sustainability-related data from all departments to break down silos and facilitate communication with stakeholders such as investors, business functions and the C-Suite. A number of vendors have developed tailored solutions to address this challenge.
• In the absence of a global framework, corporations are increasingly reporting in alignment with various voluntary reporting standards. ESG reporting and data management solutions enable customers to report to multiple frameworks; some offerings specifically focus on managing and reporting various ESG metrics.
• Organizations are transitioning from annual sustainability reporting to more frequent reporting to meet stakeholder demands. To gain a competitive edge, some firms have already begun integrating sustainability data into their financial reports. More advanced solutions include advanced capabilities to facilitate this integration.
• A growing number of firms are seeking digital ESG reporting solutions, so software vendors must scale their offerings to meet the rising demand. This requires providing fast-to-deploy and highly configurable solutions, often with starter packages that can expand to meet evolving customer needs. Additionally, vendors are adopting pricing models that do not charge for the number of system users, to encourage collaboration and streamline the data collection process.
• Software providers are forming strategic partnerships with complementary vendors to enhance their offerings without significant investment in product development. These partnership facilitate capabilities such as integrating essential data and insights and expanding into more impact areas, like biodiversity.
• Vendors are offering varied use of services, whether to help with implementation or complex functionality, such as materiality assessments and strategy development. Some providers have in-house consulting branches that assist in this respect, while others have strong partnerships with services firms to expand their offerings.

"As the ESG reporting and data management software market is projected to soar to $4.3 billion by 2027, it is imperative for vendors to proactively stay ahead and remain competitive. With a widening scope of business functions engaged in ESG implementation and a continuously evolving regulatory landscape, agility and adaptability are paramount,” emphasized Jessica Pransky, Principal Analyst at Verdantix. "To meet escalating demand, vendors must deliver fast-to-deploy, scalable solutions that address market trends and cater to the evolving needs of businesses. Executives seeking to maintain their competitive edge in the rapidly evolving landscape of ESG reporting and data management must ensure they understand the market dynamics and trends that shape it."

For more information and to access the full report, please read Green Quadrant: ESG Reporting And Data Management Software.