Agile ESG reporting software key in evolving regulatory landscape

Mounting regulatory requirements and growing stakeholder pressure is driving a surge in demand for ESG reporting and data management software, creating a multi-billion dollar market that vendors need to keep up with, according to a report from research firm Verdantix.

Organisations worldwide are recognising the importance of enhancing their sustainability programmes, driving escalated demand for innovative software, says Verdantix.

The report identifies key trends and software needs, while picking out 11 leading vendors in the field: Benchmark Gensuite, Cority, Diligent, IBM, Intelex, Nasdaq, Sphera, UL Solutions, VelocityEHS, Wolters Kluwer and Workiva.

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, argues the report.

Meanwhile, in the absence of a global framework, corporations are increasingly reporting in alignment with various voluntary reporting standards.

Organisations 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.