Smart Innovators: ESG Reporting And Data Management Software For Investors

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Executive Summary

A growing number of investors are turning to ESG reporting and data management software because of increasing stakeholder and regulatory pressure, heightened public scrutiny of ESG claims, and concerns over data accuracy and reliability. Against this backdrop, this report provides buyers of investor-focused ESG reporting and data management software with a high-level benchmark of the capabilities of 23 software solutions. Investors across a range of different asset classes should use this report to compare the relative capabilities of vendors in 10 key functionality areas to inform their software purchasing decisions for 2024.

Table of contents

Investor demand for ESG reporting and data management software is increasing
Developments in the sustainable finance landscape
Investor-specific functionality emerges as a distinct software category
Evaluated firms and selection criteria
Vendors from a range of backgrounds target the investor reporting market
Core capabilities essential for ESG reporting software providers
Vendors differentiate their offerings through innovative functionality

Table of figures

Figure 1. The ESG investment life cycle 
Figure 2. Definitions and disclosure obligations under SFDR Articles 6, 8 and 9: product classifications 
Figure 3. Selection process for identifying smart innovators
Figure 4. ESG reporting and data management capabilities and definitions
Figure 5. ESG reporting and data management software capabilities assessment
Figure 6. Product innovations in the market

About the authors

Lily Turnbull

Industry Analyst
Lily is an Industry Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on ESG and sustainability services, ESG assurance, and sustainable finance. Lily joined Verdantix in 2022 and has previous experience in social impact research and ESG software development. She holds an MSc in Women, Peace & Security from the London School of Economics and Political Science and a BA in Theology & Religion from the University of Bristol.

Luke Gowland

Industry Analyst
Luke is an Industry Analyst in the Verdantix ESG & Sustainability practice. His current research agenda focuses on the ESG reporting and data management landscape, as well as emerging technologies and market trends across industries. Prior to joining Verdantix, Luke worked at research and advisory firm GlobalData, producing ESG research reports for corporate clients. Luke holds an MSc in Sustainability and Management from the University of Bath.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

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