Market Overview: Digital Sustainability Strategies To Transition From Voluntary To Mandatory Reporting

10 May, 2023

Access this research

Access all Corporate Sustainability Leaders content with a strategic subscription or buy this single report

Need help or have a question about this report? Contact us for assistance

Executive Summary

This report provides chief sustainability officers (CSOs) with the information they need to transition from voluntary reporting to mandatory environmental, social and governance (ESG) disclosures. The convergence of mounting regulatory pressures and heightened attention to ESG factors within the financial community will require firms to adopt digital sustainability strategies and adopt a proactive, long-term approach to sustainability management. This report outlines four digital strategies which firms can leverage to produce investor-grade disclosures and integrate sustainability into decision-making. Business leaders should use this report to assemble the necessary resources, workflows and technologies to navigate these challenges.
Upcoming Regulations Will Require Firms To Rethink Their Existing Sustainability Strategies
Corporates Must Undergo An ESG Information Overhaul To Meet Intensifying Regulatory Demands
Firms Must Continue To Address Non-Regulatory Drivers That Shape And Inform The Regulatory Landscape
Blueprints For Effective Sustainability Reporting Are Emerging
Firms Will Adapt Their Processes To Refine The Reporting Journey
Technology Solutions Have Emerged To Streamline Mandatory Reporting Commitments
Key Considerations For ESG Software Selection
Digital Strategies For Investor-Grade Sustainability Disclosures
Firms Must understand How Their Sustainability Reporting Programme Aligns With Their Overall Business Strategy
Building Blocks For An ESG Information Architecture And Investor-Grade Data
Figure 1. Frameworks And Disclosure Rules Prompting Spend In 2023
Figure 2. Overview Of Disclosure Regulations 
Figure 3. Regulation Timeline 2022-2028
Figure 4. Comparison Of Traditional vs Investor-Grade Sustainability Data
Figure 5. Commercial Software Categories
Figure 6. Firms’ Levels Of Commitment To Sustainability
Figure 7. Verdantix ESG Maturity Model
Figure 8. Four Digital Sustainability Deployment Strategies
12Return, Accuvio, Achilles, Alaya, Alcumus, alva, APlanet, Archer Integrated Risk Management, Assent, Avetta, Aviva Investors, AXA, Bandwatch, Benchmark ESG, Benevity, BlackRock, Blendoor, Bloomberg, Borealis, Bright Funds, BuildESG, CarbonCloud, Cargill, CDP, Ceridian, Cervest, Circul8, Circular, Circular IQ, Circularise, Circulor, Clarity AI, Climate TRACE, Climate X, CLIMsystems, Conservice ESG, Cority, Costco, Cuantix, Culture Amp, Daato, Datamaran, Deutsche Bank, Deutscher Bundestag, DevonWay, Digimarc, Diginex, Diligent, Diversio, DNV , DWS, EcoVadis, EMpower, Enablon, ENGIE Impact, Equileap, ESG Book, ESG Playbook, ESG Trust, ethiXbase, Euronext, European Commission, European Financial Reporting Advisory Group (EFRAG), Evreka, EY, Fairown, FigBytes, Financial Stability Board (FSB), Foodsteps, GHGSat, Giki, Global Reporting Initiative (GRI), Goldman Sachs Asset Management, Green Story, Greenly, Greenomy, Greenstone, GRESB, Greyparrot, Gro Intelligence, Harvard University, Higg, HSI, Hult International Business School, IBM, IFRS Foundation, Intelex, Intergovernmental Panel on Climate Change (IPCC), International Integrated Reporting Council (IIRC), iPoint-systems, IsoMetrix, Jambo, JBS, Jupiter Intelligence, Kanarys, Kezzler, Klima, KPMG, Lattice, Lixo, Lizee, Loop, Maanch, Makersite, MarketPsych, Mars, Matter, Measurabl, MESA Group, MetricStream, Metrio, Mighty Earth, Mondra, Morningstar, MSCI, NASDAQ, NAVEX Global, Neighbourly, NetBenefit, Nokia, Novata, Novisto, One Click LCA, One Concern, OneStream, OneTRust, onHand, OnProcess, Oracle, Pawprint, PepsiCo, Persefoni, Planetly, Position Green, ProcessMAP, Pulsely, pulsESG, Qliktag, Quentic, Recyda, Recykal, Refinitiv, Reporting 21, RepRisk, ReverseLogix, Risilience, riskmethods, SAI360, Salesforce, SAP, Schneider Electric, Science Based Targets initiative (SBTi), Selerant, Selflessly, ServiceNow, SimaPro, SINAI Technologies, SmartHead, Socialsuite, SoPact, Source Intelligence, Sourceful, Sphera, Stryker, Submittable, Sustainability Accounting Standards Board (SASB), Sustira, Sweep, Sylvera, Target, Task Force on Climate-related Financial Disclosures (TCFD), thinkstep, Topolytics, Toxnot, TSC.ai, UL Solutions, Ulula, University of Chicago, University of Trento, US Securities and Exchange Commission (SEC), VelocityEHS, Visier, VitalMetrics, Watershed, WayCarbon, WeSort.AI, WeSpire, WorkBuzz, Workday, Workiva, XDI Systems

About the Authors

Luke Gowland

Luke Gowland

Senior Analyst

Luke is a Senior Analyst at Verdantix, specializing in ESG and sustainability reporting software and financial ESG. He advises both technology buyers and software vendor and s...

Kim Knickle

Kim Knickle

Research Director

Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...

View Profile

Other related content

Webinar
Sustainable Supply Chains
Sustainability Assurance & Due Diligence
Sustainability & Climate Risks
ESG & Sustainability Reporting Software
Corporate Sustainability Leaders
Corporate Sustainability & Climate Change Services
All Aboard The Omnibus: What Sustainabi...

As the EU Sustainability Omnibus Package is being finalised, join us to find out what action you need to take now, and how to prioritise in an era of rapid change. Find out: What t...

Upcoming / 24 February, 2026

Webinar
Digital Grid Technologies
Corporate Sustainability Leaders
Corporate Energy Transition Solutions
Corporate Energy Leaders
What Utilities Need To Know About Deplo...

Utilities are facing unprecedented grid constraints and long DER connection backlogs, driven by rapid growth in solar, EVs, and storage. Traditional systems alone struggle to provi...

Upcoming / 10 February, 2026

Podcast
Sustainability & Climate Risks
Corporate Sustainability Leaders
Corporate Sustainability & Climate Change Services
EHSQ Corporate Leaders
Corporate Risk Leaders
Corporate Energy Leaders
Digital Transformation Leaders
The Modern Sustainability Leader - A Ne...

Episode 29 The Chief Sustainability Officer (CSO) role has undergone a radical evolution. Once focused primarily on voluntary reporting, policy formation and goal-setting, today’s ...

04 December, 2025

Blog
Corporate Sustainability Leaders
Stuck In Quicksand: Decoding The Latest...

The beginning of 2025 saw significant uncertainty surrounding sustainability regulations. Twelve months later, that uncertainty hasn’t disappeared – in fact, the year has highlight...

27 November, 2025

Blog
Corporate Sustainability Leaders
Regulatory Clarity And Legal Uncertaint...

November 18, 2025 was a notable – and unusually eventful – day for California’s climate disclosure laws, SB 253 and SB 261. Two major developments unfolded simultaneously: CARB hel...

27 November, 2025

Webinar
Sustainable Supply Chains
Sustainability Assurance & Due Diligence
Sustainability & Climate Risks
ESG & Sustainability Reporting Software
Corporate Sustainability Leaders
Corporate Sustainability & Climate Change Services
Predictions 2026: Sustainability

After the rapid surge of ambitious policies in 2024, and the abrupt reversals, cancellations, and turbulence that followed in 2025, many organizations expected momentum to stall. I...

21 January, 2026