ESG reporting tools are reshaping how companies measure success

The growth of ESG reporting tools is reshaping the corporate world, making transparency and accountability more critical than ever. By Remy Barba.

Environmental, Social, and Governance (ESG) considerations have been a central focus for businesses worldwide in recent years. Multiple market trends indicate that ESG is no longer an optional corporate initiative but a fundamental aspect of business strategy. To ensure that any sustainability initiative results are accurately captured, firms are turning to sustainability software solutions. 

The Growing Market for Sustainability Software

Sustainability software are tools that help organisations to monitor, manage, and disclose their ESG performance. Sustainability software solutions come in various forms, from broad platforms that measure a company’s overall impact, to specialist tools focusing on carbon footprint reduction or supply chain sustainability.

With a plethora of available software on the market, some of the most popular include: 

• IBM Envizi: The IBM solution provides its customers with various analytics and reporting tools to track supply chain sustainability and green house gas emissions. The software simplifies data survey and disclosure with dashboards and other reporting templates.
• Greenly: This software enables companies to acknowledge, reduce and compensate their CO2 emissions. 
• Workviva: the cloud-based software features instruments for efficient data management, permitting easier financial disclosures, through pre-built frameworks and standards.

The demand for ESG reporting tools is expected to grow further in the coming years, driven by regulatory requirements and market expectations. Some reports expect an expansion, ranging from 13% to 23% over the next decade. 

Growing Consumer Demand for Green and Sustainable Products

Consumers are increasingly prioritising sustainability in their purchasing decisions. Customers are looking for eco-friendly products and companies that demonstrate a genuine commitment to ESG principles. Research indicates a growing tendency of individuals adjusting their consumption habits to line with their social values and their environmental impact.

Attracting Investment Through ESG Strategies

ESG has become a key requirement for investors and stakeholders when evaluating companies. Over the past few years, investors have shown a growing reluctance to fund businesses that lack clear ESG strategies or net-zero commitments. Companies aiming to raise capital must provide concrete evidence of their sustainable initiatives and long-term ESG goals.

Stricter Government Regulations 

Governments and intergovernmental organisations are increasing regulatory pressure to align with global climate goals. The 2015’s Paris agreements already had played a significant role in this evolution. But, it progressed further in 2025 as the European Union introduced the Corporate Sustainability Reporting Directive (CSRD), reinforcing stricter ESG reporting requirements for companies. These new directives demand higher levels of transparency and accuracy in ESG disclosures. 

For more information on table sales for the upcoming ESG Awards, in partnership with Grant Thornton, taking place on 10th April, please contact Alma.Bustos@businessandfinance.com 

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