Verdantix Evaluated 21 ESG And Sustainability Reporting Software Providers: This Is What We Learnt

In June, Verdantix published the Green Quadrant: ESG & Sustainability Reporting Software (2025) report, in which we evaluated the capabilities of 21 providers. As part of this study, we interviewed 35 buyers of sustainability reporting software to gain insight into their experiences, selection criteria and best practices for implementation and onboarding. The buyers we interviewed work in a range of industries, spanning transportation, oil and gas, healthcare, manufacturing, construction, utilities, finance, and retail, and are located across Europe, North America, Latin America and Asia-Pacific.

Our interviews revealed that firms:

• Primarily use software for sustainability data collection and reporting.
  The most common ESG and sustainability reporting software use case today is data collection, closely followed by reporting and disclosure. Far fewer organizations are using software for performance management, analytics, benchmarking and target-setting, although we expect these capabilities to become more important in the coming years due to the growing emphasis on demonstrating the value of sustainability initiatives (see Verdantix Strategic Focus: Unpacking The EU Omnibus And Its Impact On Sustainability Software).
• Are integrating AI into sustainability processes, but cautiously.
  Approaches to AI adoption are mixed. While several firms highlight the benefits of AI for data collection, emissions factor mapping and report content generation, others were more cautious. If sustainability executives are uncertain about using AI, they should start with a lower risk pilot project or evaluate how their peers are already successfully incorporating AI into sustainability processes. When selecting a software provider, decision-makers should consider asking vendors about their AI capabilities and strategies.
• Prefer to take ownership of critical decisions, even if it means extra work in the short term.
  Most buyers highlight the importance of maintaining control and ownership of the decision-making process – both in terms of software implementation and broader sustainability management areas. For example, one firm emphasized the importance of taking ownership of carbon emissions calculations and emissions factor mapping, noting that this approach provided greater autonomy in the long term.
• Don’t allocate enough time and resources to software implementation.
  Successful software implementation, set-up and deployment are key to maximizing the return on a software investment. Many of the buyers we spoke to advised allocating significant time and resources to this phase of the process. On average, implementations for ESG and sustainability reporting software take around six months, though in many cases the actual timeline and budget exceeds the vendor estimates. Software configuration and data migration is often the lengthiest part of the process.

Software adoption for ESG and sustainability reporting has accelerated rapidly in the last two years. The 2025 Verdantix global corporate survey, which is set to publish later this year, reveals that 61% of firms use commercial software for ESG and sustainability reporting. This is a significant increase since 2023, when 29% of firms used commercial software (see Verdantix Global Corporate Survey 2023: ESG & Sustainability Budgets, Priorities And Tech Preferences). Automating ESG data collection, management and reporting is essential for ensuring data accuracy, improving efficiency and reducing compliance costs – a critical focus of regulatory discussions in Europe.

For more information on designing RFPs, selecting a software provider, AI, and implementation best practices, see:

• Verdantix Buyer Insights: Feedback From The 2025 ESG & Sustainability Reporting Software Green Quadrant
• Verdantix Green Quadrant: ESG & Sustainability Reporting Software (2025)
• Verdantix Strategic Focus: Implications Of AI For The CSO
• Verdantix Best Practices: Creating An RFP For ESG Reporting And Data Management Software