With the high demand for ESG reporting, clients / vendors / shareholders are looking for transparency in Sustainability metrics. Due to increase in regulations & multiple standards from across regions there is a need to evaluate software that’s industry specific & meets Geo requirements as well.
Some key parameters to be factored in accessing vendors for ESG Software:
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Collaboration on strategy development & data collection methods
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Services on customization, implementation & client support levels
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Partnerships with Service providers, Consultants & SME’s
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Financial commitments on Sustainability Reporting
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Development of the right ESG & Sustainability Architecture Framework
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Ability to address current & future custom reporting requirements
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Adoption of tools & methods for integration & data collection
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Calculation methods & formulas for emissions
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Embedded functionality on materiality analysis
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Processes and workflows for audit verification
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Sustainability performance benchmarking within systems
In addition, SW vendors who develop ESG reporting tools should have: -
Vendors to have industry specific functionality & experience that can be demonstrated
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Platform & Org structure, Data quality assessments, security, integration & calculation methods
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Embedding respective standards, regulatory frameworks, voluntary disclosures & country specific rules along with amendments for future requirements
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Vendor ability to collaborate internally & externally with all stakeholders
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SW capability on materiality assessments, forecasting, target setting, visualization, scenario analysis & performance benchmarking
While the above is not an exhaustive list, these are minimum essential requirements to be considered while evaluating software that companies plan to implement for their ESG & Sustainability measurement & reporting requirements.