Verdantix Benchmarks Forty-Four ESG And Sustainability Software Applications To Speed Up Investment Decisions
London, May 17, 2021. Independent research firm Verdantix has released its benchmark of forty-four software applications which support ESG, climate change and sustainability use cases. The study builds on over a decade of Verdantix research on technologies designed to meet corporate requirements to reduce carbon emissions and manage sustainability. Technologies in the study include reputation sentiment monitoring from alva and Nasdaq, new ESG platforms such as EMEX and Novisto, and GRC apps from Diligent and NAVEX Global.
“Due to a lack of market drivers, the sustainability software market was in the doldrums between 2010 and 2018” commented Verdantix Principal Analyst Yaowen Ma. “Vendors struggled to scale up as they were limited to pitching for small budgets owned by the VP Sustainability. Since 2019, ESG issues have rapidly risen up the financial market’s agenda, This has lifted interest in digital solutions that operationalize ESG strategies and improve sustainability disclosures.”
The Verdantix report, Smart Innovators: Corporate ESG & Sustainability Software, provides buyers of ESG and sustainability software with a detailed assessment of forty-four vendors on sixteen criteria. Study highlights:
- Software vendors with more than a decade of experience in Environment, Health and Safety management have the most complete offerings but lack coverage of governance and some social issues. Firms in this segment include Enablon, Intelex, iPoint, IsoMetrix, Quentic, Sphera and UL.
- Workflow and data management functionality for sustainability and ESG disclosure is commoditized as more than forty vendors offer at least some capability. This should keep prices down for customers.
- Twenty-six vendors claim to have out of the box functionality for energy and carbon management. But only one – Schneider Electric – has a full offering for climate change risk management for physical assets.
- Buyers with product stewardship requirements have the smallest range of choices. Assent Compliance, iPoint, Sphera, UL and and VelocityEHS offer comprehensive functionality for product compliance. Only three providers – iPoint, Sphera and UL – offer strong capabilities for circular economy and product life cycle assessment.
“Investor interest in ESG, climate change and sustainability digital solutions is booming” commented Verdantix CEO David Metcalfe. “This presents buyers with a complex choice. Do you buy from a new vendor with $10 million of private equity backing and a new product architecture designed around ESG requirements? Or do you go with the tried and trusted vendors like Envizi or Figbytes who have more than a decade of experience working with customers and a detailed understanding of data acquisition and processing challenges? We recommend firms make vendors complete a detailed RFP, run a two-hour demo for multiple types of user and complete a high volume, data processing challenge.”
To learn more register for the Verdantix webinar: “ESG & Sustainability Software: 2021 Benchmark & Investment Recommendations”.