If ESG is a priority, your reporting tools need to be just as strong.
Investors demand transparent, audit-ready disclosures they can trust
Regulatory expectations are rising, with new mandates and tighter timelines
Credible, consistent data is essential for building stakeholder confidence
This guide compares 10 ESG software solutions to help you stay compliant, credible, and ahead.
In 2026, ESG software has become essential infrastructure for businesses operating in an era of mandatory sustainability reporting, heightened regulatory requirements, and rising stakeholder expectations. ESG software in 2026 has become an essential infrastructure for businesses to transform sustainability into a core legal obligation. Regulators, investors, employees, and customers now expect companies to demonstrate credible progress across environmental, social and governance (ESG) factors using accurate, auditable data.
The market for ESG software is experiencing substantial growth, expected to reach around $1.5 billion, as businesses in 2026 have access to various ESG software solutions tailored to different company sizes and reporting needs. ESG software ensures adherence to mandatory reporting standards, avoiding potential penalties, while also providing traceable proof of emissions and human rights data, important for securing market access.
ESG software solutions help organizations streamline ESG reporting, automate data collection, validate data accuracy, manage ESG risk, and transform sustainability efforts into informed, data-driven decision making. Effective ESG software solutions automate data collection, integrate diverse datasets, and provide analytics for carbon accounting. As ESG reporting continues to shift from voluntary to mandatory across the European Union and beyond, companies increasingly rely on ESG reporting software to manage sustainability data, carbon emissions, governance data, and social metrics within a single ESG platform.
This guide explains what ESG software is, why ESG reporting matters in 2026, the most important ESG frameworks, common ESG data collection challenges, and how to choose the best ESG software for your organization. It also reviews leading ESG reporting solutions available today.
ESG stands for Environmental, Social, and Governance, three core dimensions used to evaluate a company’s sustainability performance, risk exposure, and long-term resilience.
Environmental covers carbon emissions, carbon footprint, energy consumption, waste management, water usage, biodiversity, and climate risk. Environmental data often overlaps with carbon accounting and emissions data used in sustainability reporting. Modern ESG platforms integrate with core business systems to pull real-time data on carbon emissions and waste management, improving both accuracy and audit readiness.
Social includes human resources data, labor practices, diversity and inclusion, human rights, health and safety, and supply chain responsibility. ESG data can be collected through various means including internal surveys, external audits, and automated data feeds.
Governance encompasses board structure, executive compensation, ethics, compliance, audit trails, internal controls, and governance data. ESG software generates automated audit trails that log data sources and approval workflows for compliance.
Together, these ESG factors form the foundation of corporate sustainability, enabling companies to demonstrate responsible business practices and meet regulatory compliance requirements.
In 2026, ESG data management is no longer a “nice to have” – it is a legal, financial, and strategic necessity.
Across the European Union, ESG reporting has become mandatory for many companies under frameworks such as the Corporate Sustainability Reporting Directive (CSRD). The European Union has developed a robust set of ESG reporting standards in response to the EU Green Deal, reinforcing the need for standardized, auditable disclosures.
In the United States, California climate disclosure laws including SB 253 and SB 261 are accelerating mandatory reporting expectations, increasing the need for strong data collection, data integration, and audit-ready reporting processes. ESG software automates the creation of reports aligned with frameworks like GRI, SASB, and TCFD, helping companies meet regulatory requirements efficiently.
Institutional investors increasingly prioritize verified ESG performance when allocating capital. In 2026, ESG credibility directly influences financing conditions, cost of capital, and access to institutional investors that prioritize verified performance. MSCI offers ESG solutions that include data, research, and analytics to help investors integrate ESG factors into their investment processes.
ESG software builds credibility with investors, customers, and employees by showcasing genuine progress supported by auditable data sources and approval workflows.
Stakeholder expectations continue to rise. Strong ESG performance can improve stakeholder engagement, strengthen corporate sustainability narratives, and reduce greenwashing risk. ESG reporting solutions help companies present a consistent ESG story through clear reporting capabilities and exportable disclosures.
Modern ESG platforms identify and mitigate ESG-related risks, including climate impacts, regulatory risk, and supply chain disruption. Key features of ESG software include data integration, KPI tracking, benchmarking, and risk assessment. ESG software also allows companies to model the financial impact of various climate futures and assess business resilience, supporting enterprise risk management and strategic planning.
By automating data collection, streamlining ESG reporting, and integrating diverse datasets across finance systems, ERP platforms, CRM software, HRIS tools, and data warehouses, ESG software reduces manual work and improves consistency. ESG software provides traceable proof of emissions and human rights data, important for securing market access and maintaining operational continuity.
Sustainable investing is increasingly important to investors because it provides a broader view of a company’s long-term viability and risk profile. Investors recognize that companies with strong sustainability performance are often better positioned to manage ESG risk, regulatory changes, climate impacts, and reputational threats.
Companies are increasingly making disclosures in annual reports or creating standalone sustainability reports. ESG reporting software helps connect ESG data and financial data, enabling better-informed decisions, stronger governance, and improved reporting processes.
The CSRD establishes a comprehensive sustainability reporting framework across the European Union, expanding mandatory reporting to thousands of companies. It requires detailed disclosures on governance, strategy, risk management, emissions data, and sustainability targets, supported by audit trails and validated data accuracy.
SB 253 and SB 261 are California climate disclosure laws that are accelerating mandatory reporting expectations in the United States. These regulations are pushing organizations to adopt ESG software solutions that ensure adherence to mandatory reporting standards, avoiding potential penalties.
The EU Taxonomy defines what qualifies as environmentally sustainable economic activity. Companies must disclose alignment with taxonomy criteria, reinforcing the need for robust sustainability data management and carbon accounting tools.
ESG data is often fragmented across departments, systems, and suppliers. ESG data can be collected through various means including internal surveys, external audits, and automated data feeds, but without proper systems, consistency and accuracy suffer.
Manual reporting processes increase errors and slow reporting timelines, while lack of integration with core business systems creates bottlenecks in ESG reporting.
ESG software centralizes sustainability data, automates workflows, and standardizes reporting.
AuditBoard’s ESG software centralizes data collection, automates manual tasks, and simplifies framework reporting. ESG software generates automated audit trails that log data sources and approval workflows for compliance.
Reporting solutions automate the creation of sustainability reports aligned with frameworks like GRI, SASB, and TCFD. ESG software ensures adherence to mandatory reporting standards, avoiding potential penalties while improving audit readiness.
Carbon accounting capabilities support emissions tracking and decarbonization planning. Persefoni is a complete climate management platform that measures and reports emissions data with accuracy and transparency, while Persefoni and Watershed are leading platforms for climate-focused carbon accounting and decarbonization planning.
The right ESG software should grow with your company and adapt to future ESG needs. Scalability, integration, and flexibility are critical as regulations evolve.
Key features of ESG software include data integration, KPI tracking, benchmarking, and risk assessment. Integration with ERP, HRIS, finance systems, and data warehouses is essential for real-time ESG data collection.
Strong ESG platforms also provide audit trails, analytics, and reporting tools that turn ESG data into actionable insights, supporting continuous improvement and long-term sustainability strategy.
Below we’ve listed six of the top carbon accounting and ESG reporting solutions for businesses, which support not only support businesses to efficiently collect ESG data, but also ensure streamlined reporting and compliance with evolving regulations.
Overview: Benchmark Gensuite’s ESG Reporting ties the proven capabilities of Gensuite EHS, Quality, Operational Risk, and Compliance digital applications with pioneering solutions for Sustainability, Disclosure Reporting, ESG Data Management, and Advanced Technology and AI Solutions.
Website address: https://www.gensuite.com/
Best for: Organizations seeking an integrated platform for managing EHS, quality, risk, compliance, and ESG data.
Key features:
Measuring the ROI of investing in ESG software involves evaluating both quantitative and qualitative benefits. Quantitatively, ROI can be assessed by examining cost savings from streamlined data collection and reporting processes, reduced risk of regulatory fines, and increased operational efficiencies.
Additionally, the value of improved stakeholder trust and enhanced investor confidence can be translated into financial terms through metrics such as higher stock valuations or increased investment inflows.
Qualitatively, ROI is measured by the software’s ability to provide actionable insights that drive better decision-making, improve sustainability performance, and align with evolving regulatory requirements. Ultimately, the return on investment is reflected in the software’s contribution to long-term value creation, risk mitigation, and enhanced corporate reputation.
As ESG considerations continue to grow in importance, the need for accurate, comprehensive, and transparent sustainability management becomes ever more critical. ESG software platforms play a vital role in helping you manage all your ESG data in one handy platform.
By automating data collection, ensuring compliance, and providing actionable insights, these platforms enable you to not only to validate data, meet regulatory requirements but also enhance your sustainability performance and have a positive impact on the economy.
In addition, leveraging ESG reporting software allows you to make informed decisions by providing comprehensive governance metrics and enhancing investor transparency.
Choosing the right ESG reporting software provider is a strategic decision that can significantly impact your company’s ability to manage its ESG data effectively.
When selecting a provider, consider factors such as data coverage, ease of use, scalability, integration capabilities, and customer support. The top five platforms highlighted in this guide: Sweep, Workiva, Greenly, Persefoni, and Watershed – offer robust features and capabilities to support businesses in implementing successful ESG initiatives.
Sweep is a carbon and ESG management platform that empowers businesses to meet their sustainability goals.
Using our platform, you can:
