Connected Buildings
14 Best ESG Reporting Software in 2024
The business landscape is undergoing a transformation with the rising importance of environment, social, and governance (ESG) reporting. The surge in regulations and standards advocating sustainability, coupled with investors' reliance on ESG factors to assess companies, highlights the indispensable value of ESG reporting software.
For example, the Sustainability Accounting Standards Board (SASB) of the US guides companies on how to disclose ESG-related data to investors. Additionally, the Securities and Exchange Commission (SEC) has presented new rules that require companies to disclose their direct greenhouse gas (GHG) emissions.
Companies that fail to follow these regulations invite hefty fines. Goldman Sachs was fined $4 million by the SEC for not having clearly written policies for ESG research in one product and for not following established procedures.
Proper ESG reporting is also required to meet net zero goals as laid out in the Paris Agreement. Net zero refers to the state when human-caused greenhouse gas emissions are removed from the atmosphere to reduce the effects of climate change and global warming. To achieve them, emissions need to be reduced by 45% by 2030 and net zero by 2050.
ESG reporting software offer a range of features that’ll help you ensure compliance to rules, improve transparency for investors, manage ESG-related risks, and increase your brand’s reputation among customers.
In this article, we’ll be discussing in detail 14 top-notch ESG reporting software, including our software Facilio, which will help you measure your environmental impact and reduce energy consumption.
What is ESG reporting?
For example, Amazon’s latest sustainability report mentions their goal to achieve net-zero carbon emissions by 2040. They were able to decrease absolute carbon emissions by 0.4%.
ESG factors are crucial considerations for companies not only due to their environmental impact, but also for their impact on other aspects of business operation.
Why is ESG reporting becoming so important?
As businesses face a landscape shaped by regulatory mandates and evolving sustainability expectations, ESG principles must be integrated with operations. For example, the US and UK are experiencing a rise in ESG reporting, driven by regulatory mandates. The EU's Corporate Sustainability Reporting Directive (CSRD) and initiatives from the SEC are also deepening reporting requirements. Given these developments, we should delve into why ESG reporting is becoming important for businesses worldwide.
The key factors that have led to ESG reporting gaining more traction are:
1. Regulatory requirements: In the UK, the SDRs play a significant role in formalizing ESG reporting and offering a structured approach for companies to address sustainability-related risks, opportunities, and impacts while establishing relevant metrics and targets.
Previous developments in the EU and UK have largely influenced the trends in ESG reporting and due diligence so far.
2024 is turning out to be a pivotal moment for ESG-focused regulatory advancements in the United States as well.
2. Competitive advantage: Companies that prioritize sustainability and transparently report on their ESG performance gain a competitive edge in the marketplace. Organizations with a long-term vision for decarbonization and a tech-led approach to energy optimization will enjoy a competitive advantage going forward. This is so because it’ll help build a loyal customer base, foster relationships with communities, improve brand image, and attract top talent.
3. Investor demands: Investors increasingly consider ESG factors when making investment decisions, viewing them as indicators of long-term financial performance and risk management. Companies with good ESG performance appear more sustainable, resilient, better positioned and less risky. As a result, companies that effectively report on their ESG performance are more likely to attract investment capital.
4. Stakeholder expectations: Customers, employees, communities, and other stakeholders expect companies to operate ethically, minimize their environmental footprint, and contribute positively to society. ESG reporting allows organizations to demonstrate their commitment to these values, build trust, and foster stronger relationships with stakeholders.
As a result, property leaders are replacing traditional lights with LEDs in their commercial properties. Alongside replacing traditional lights with LEDs, organizations are investing in comprehensive retrofitting projects, upgrading HVAC and refrigeration systems to more efficient models, and turning to renewable energy sources such as solar and wind power. Moreover, they are implementing smart building technologies, optimizing water usage through efficient fixtures and landscaping practices. These multifaceted approaches not only reduce energy consumption and operational costs but also contribute significantly to mitigating environmental impact, improving occupant comfort, and aligning with broader sustainability goals.
While these are positive practices in the right direction, business owners often find themselves struggling on their path to sustainability due to siloed data systems, limited visibility, and reliance on point solutions.
Hence, we have curated a list of the top 14 best solutions to simplify ESG reporting. One of the best tools for ESG reporting software is Facilio, which can help you track and analyze your energy consumption across different portfolios, consolidate data from different sources, and provide real-time insights about energy usage patterns.
Let’s explore Facilio and each of these tools in more detail!
Best ESG Reporting Software: Quick Comparison
Top 14 best ESG reporting software in 2024
Let’s discover the leading ESG reporting software solutions for 2024. We’ll be discussing key features of each solution and for whom it's best suitable.
- Facilio
- Workiva
- IBM Envizi ESG Suite
- Workday Adaptive Planning
- Ethos Tracking
- Nasdaq OneReport
- Persefoni
- AuditBoard
- Ecovadis
- FigBytes
- ESGenius!
- Novisto
- Galooli
- Rampart AI
1. Facilio
With its advanced IoT-driven energy monitoring capabilities, automated work order management, and predictive maintenance model, Facilio enables you to track your environmental impact, reduce energy consumption, and improve operational efficiency across the portfolio and in real time.
While other tools provide point solutions for these functionalities that do not interoperate, Facilio offers a comprehensive suite of tools for an integrated approach to energy management.
Additionally, Facilio's focus on scalability, customization, and cloud-based deployment ensures that organizations can quickly onboard and derive value from the platform, setting it apart from tools that may offer similar features but lack the same level of integration and ease of use.
Here’s a run-down of the key features of Facilio:
1. Data integration: Facilio integrates with an organization’s existing data sources to ensure smooth data transfer and collection. It integrates with multi-vendor building automation and HVAC systems, BIM providers, sensing platforms, and other business apps.
2. Emissions calculation: Accurate emissions calculation is the first step to ESG reporting and running a decarbonization program. Facilio provides utility tracking and benchmarking features, which can help you calculate emissions at a granular level.
Facilio collects utility bills, submetering data, interval data, and building characteristics, which will help you measure and track your energy consumption and emissions.
3. Conversion Factors: Then, Facilio uses conversion factors to convert the collected data into equivalent greenhouse gas (GHG) emissions. This ensures that all data is converted into standardized units, ensuring consistency and comparability in ESG reporting.
Since this process is automated it reduces the risk of human error associated with manual data conversion processes. This helps ensure the accuracy and reliability of ESG data, which is crucial for stakeholders.
4. Emissions Reporting: Facilio also offers robust emissions reporting tools that’ll help you report and visualize the calculated emissions data. These reports provide emissions breakdown based on energy source, building zone, and time period.
Additionally, visualization tools such as heat maps allow users to analyze large datasets and capture trends in energy consumption. This feature provides instant insights into key performance parameters, facilitating data-driven decision-making. By visually representing building behavior, users can identify patterns, anomalies, and opportunities for optimization, enabling them to take proactive measures to improve energy efficiency and reduce costs.
5. ESG Benchmarking: Facilio also offers benchmarking features that’ll help you compare your building’s emissions with industry standards and peers. You can benchmark utility, meter, and interval data across your portfolio. Also, you can visualize your building’s energy usage in graphs.
Here’s an overview of the benefits of using a connected operations platform for sustainability reporting:
What users say about Facilio
“Exceeding the highest benchmarks for sustainable design and construction has been a top priority for us right from the start. DWTC supports the UAE’s sustainability agenda and our deployment with Facilio is in line with our efforts to achieve optimal efficiency of energy consumption and operations at One Central in a sustainable manner across our facilities which include offices, hotels, shops, among others.”
AVP, Destination Management, Dubai World Trade Centre
What Facilio users have achieved:
- British Land, a leading property development and investment company located in London, UK, went from siloed data systems and manual reporting to 50% reduction in lightning and energy costs in 2 months with Facilio’s connected CMMS.
- One of London’s busiest airports was challenged by energy wastage due to a legacy BMS. By deploying dynamic asset operational schedules via a connected O&M platform like Facilio, energy savings of £10,000 per month were realized by consistent set point optimization.
Rating - 4.0 ⭐️⭐️⭐️⭐(Based on Capterra reviews )
2. Workiva
Workiva is a cloud-based platform that facilitates ESG reporting and compliance processes. It offers real-time collaboration, data integration, and validation features to improve data accuracy and transparency in ESG reporting. The platform serves companies of all sizes seeking a comprehensive solution for ESG reporting and compliance.
Key Features of Workiva
- Provides customizable reporting templates for ESG metrics
- Collaboration tools for team input and review
- Audit trail functionality for transparency and compliance
Best suitable for
Businesses in the banking, energy and utilities, higher education, insurance, and investments
3. IBM Envizi ESG Suite
IBM Envizi ESG Suite is an AI-driven platform designed to help companies manage and report on their ESG performance. It assists in data collection, analysis, and reporting across environmental, social, and governance aspects. The suite targets large enterprises seeking advanced ESG analytics and reporting capabilities.
Key Features of IBM Envizi ESG Suite
- Data management capabilities that allow organizations to collect, store, and manage a wide range of environmental, social, and governance (ESG) data
- Acts as a single repository for ESG data
- Available in seven languages including English, French, German, Italian, Spanish, Brazilian-Portuguese and Japanese.
Best suitable for
Enterprises and large corporations
4. Workday Adaptive Planning
Workday Adaptive Planning is a cloud-based financial planning and analysis software that includes ESG reporting capabilities. It enables companies to integrate ESG data into their financial planning and assess the impact of sustainability initiatives on financial performance.
Key Features of Workday Adaptive Planning
- Tools for assessment of ESG metrics
- Intuitive dashboards and reports provide a single source of truth so businesses can spot trends
Best suitable for
Finance and sustainability teams aiming to align financial and ESG strategies.
5. Ethos Tracking
Ethos Tracking offers an ESG data management platform that streamlines data collection, monitoring, and reporting for sustainability performance. It aims to improve data transparency and efficiency in the reporting process. The platform serves organizations of various sizes and industries looking for efficient ESG data management and reporting.
Key Features of Ethos Tracking
- Provides quantitative materiality assessment tool so you can track most critical sustainability issues
- Simplifies the complexity of ESG reporting by providing one score
Best suitable for
Businesses in various sectors such as nonprofits, foundations, businesses, and families
6. Nasdaq OneReport
Nasdaq OneReport is an ESG reporting and data management platform that assists companies in gathering and reporting sustainability information in line with various reporting frameworks and standards. It automates data collection and aligns with multiple reporting frameworks. The platform primarily serves organizations looking for efficient ESG reporting aligned with different standards.
Key Features of Nasdaq OneReport
- Provides custom metrics, KPIs and GHG calculations
- Offers intelligent survey workflows and audit trails
- Provides tools for creating corporate sustainability reports
Best suitable for
Both public and private companies
7. Persefoni
Persefoni is an AI-driven ESG reporting platform that helps businesses measure, monitor, and reduce their carbon footprint. It offers advanced carbon tracking, real-time insights, and comprehensive carbon reporting. The platform is designed for companies seeking to manage and disclose their carbon-related data and risks.
Key Features of Persefoni
- Helps calculate carbon emissions
- Provides tools for planning emission reduction
Best suitable for
Finance companies
8. AuditBoard
AuditBoard offers an integrated platform for risk management, compliance, and ESG auditing, helping companies ensure compliance with ESG reporting requirements and internal controls. It simplifies audit processes and provides compliance tracking capabilities. The platform is useful for organizations seeking to strengthen their ESG auditing and compliance practices.
Key Features of AuditBoard
- Helps documentation and editing of audit reports
- Provides collaboration tools for communication in audit process
- Sync with PDF and Excel files
Best suitable for
Fortune 500 companies
9. Ecovadis
Ecovadis provides a collaborative platform for assessing and monitoring the sustainability performance of suppliers. It offers supplier-focused sustainability assessments, a global supplier database, and benchmarking capabilities. The platform primarily serves companies looking to assess and improve the sustainability performance of their supply chain.
Key Features of Ecovadis
- Provides customizable assessment questionnaires based on company’s size, location, industry, etc
- Provides detailed insights regarding value chain risks
- Integrates with third-party tools
Best suitable for
Companies of any size and industry
10. FigBytes
FigBytes is an enterprise ESG and sustainability management platform that assists organizations in collecting, analyzing, and reporting ESG data. It offers customizable reporting and scenario analysis for sustainability planning. The platform targets companies across industries aiming to enhance their ESG and sustainability reporting.
Key Features of FigBytes
- Provides tools for stakeholder engagement
- Collects, centralizes, and calculates ESG and sustainability data
- Includes scenario analysis capabilities for achieving net-zero goals
Best suitable for
Companies in various sectors such as government, healthcare, technology, etc
11. ESGenius!
ESGenius! is an ESG data analytics platform that leverages AI to help companies identify ESG risks and opportunities. It offers real-time monitoring and industry-specific ESG analysis. The platform serves companies seeking AI-driven ESG analytics to improve sustainability performance.
Key Features of ESGenius!
- AI and machine learning technology enable users to set baselines and share ESG ratings with investors
- Compliance management tools to help businesses comply with ESG regulations
Best suitable for
Small-and-medium sized businesses, public and private companies, investment firms and financial institution
12. Novisto
Novisto offers an ESG performance management platform that integrates ESG data into performance management strategies. It provides customizable reporting and data visualization. The platform serves businesses looking to align ESG considerations with overall performance management.
Key Features of Novisto
- It offers hundreds of ESG benchmarks that you can measure
- User interface is simple to navigate
- Report builder for all major standards and frameworks such as GRI, SASB, TCFD and more
Best suitable for
Businesses in the private capital, security, and technology sectors
13. Galooli
Galooli offers an IoT-based ESG software platform that helps businesses monitor and optimize energy consumption, reduce emissions, and improve overall sustainability. It provides IoT-driven energy monitoring, data analytics, and cost-saving solutions. The platform serves organizations aiming to enhance their energy efficiency and sustainability efforts.
Key Features of Galooli
- KPI tracking for measuring energy and carbon metrics
- Remotely manage energy assets
- Predictive real-time alerts to identify maintenance needs
Best suitable for
Businesses in the renewables, telecommunications, data centers, facilities, microgrids, and utilities industries
14. Rampart AI
Rampart AI is an ESG data analytics platform that leverages AI for ESG insights and real-time monitoring. It targets companies seeking to identify ESG risks and opportunities based on data-driven insights.
Key Features of Rampart AI
- Interactive dashboard that provides overview of key sustainability metrics
- Rapidly integrates with existing data sources
Best suitable for
Businesses in finance, technology, and healthcare industries
ESG reporting and your business
There are many benefits to tracking and reporting ESG beyond regulatory compliance. Some of the most common benefits include:
- Enhanced stakeholder trust and loyalty: By tracking and reporting ESG metrics, companies can improve their corporate reputation and demonstrate a sincere commitment to addressing environmental, social, and governance issues. As a result, stakeholders, including customers, investors, employees, and communities, are more likely to trust and remain loyal to the company, fostering long-term relationships built on shared values and transparency.
- Proactive risk management and resilience: Non-compliance with ESG regulations can lead to fines, legal liabilities, and restrictions on business operations. Additionally, investors consider ESG factors when making investment decisions, hence failure in addressing them can lower your chances of securing investment deals. Proactive risk management through ESG reporting enhances the company's resilience to unforeseen challenges, such as regulatory changes, supply chain disruptions, or reputational crises.
- Diversified access to capital and investment opportunities: Transparent ESG reporting can significantly enhance a company's attractiveness to investors who prioritize sustainable and responsible investing. By showcasing strong ESG performance, companies can access a broader pool of capital from investors, including sustainability-focused funds, impact investors, and socially responsible investment (SRI) funds. Additionally, companies with robust ESG credentials may benefit from lower financing costs and improved terms.
- Differentiated brand identity and market positioning: Consumers are conscious of the social and environmental impacts of their purchasing decisions. They are more likely to choose products and services from companies with strong ESG commitments. Therefore, by emphasizing their sustainability efforts through transparent reporting, companies can attract and retain such customers.
The ESG landscape is not static. Regulatory bodies worldwide are also evolving their standards to address these emerging priorities. Let's explore the current regulatory landscape to grasp the nuances of ESG compliance.
Current Regulatory Landscape on ESG Compliance
The UK has been one of the forerunners of introducing mandatory climate-related and ESG reporting guidelines for companies.
One prominent regulation is the Streamlined Energy and Carbon Reporting (SECR), which stipulates that certain companies need to disclose their energy usage and carbon emissions. The SECR targets energy efficiency and environmental impact reduction, thereby cutting operational costs and enhancing productivity. It covers quoted companies, large unquoted companies, and LLPs.
Additionally, the UK's SDR mandates comprehensive reporting on environmental and societal impacts, integrating diverse sustainability standards into a unified framework. It encompasses governance, strategy, risk management, and metrics, broadening the focus from environmental to societal effects. This initiative aims to aid stakeholder decision-making by fostering transparency and consistency in reporting practices.
Furthermore, the UK has introduced the Disclosure Framework for Net Zero Transition Plans, urging companies to transparently outline their net zero emissions strategies. This initiative, aligned with the UK's ambition to lead in sustainable finance, emphasizes governance, strategy, risk management, and metrics/targets. While voluntary for some, it establishes clear expectations for detailed transition plans.
These regulations will increase the significance of ESG regulations. By adhering to these standards, UK businesses not only align with global sustainability goals but also enhance their credibility and long-term viability in an evolving market.
What are the key features to look for in ESG reporting software?
When considering ESG reporting software, key features that you should look for are:
1. Energy Monitoring: Energy monitoring involves tracking and analyzing energy consumption data to understand usage patterns, identify inefficiencies, and optimize energy usage. This includes analyzing utility bills and benchmarking energy usage both internally (against historical data) and externally (against industry standards or peers).
Facilio's platform facilitates all by enabling 360-degree operational visibility across your portfolio, providing real time KPIs and role-based reports helping users identify inefficiencies and opportunities for improvement.
2. Analytics & BI (Business Intelligence): Analytics and BI tools enable users to analyze energy consumption data, Energy Performance Indicators (EnPI), and other relevant metrics to gain insights into energy usage trends, identify areas for improvement, and make data-driven decisions.
Facilio’s platform provides visualization tools like heatmaps to help present complex data in an understandable format that’ll help you gain insights about portfolio-wide energy consumption.
3. FDD (Fault Detection and Diagnostics) & Continuous Commissioning: FDD involves using algorithms and sensors to automatically detect and diagnose faults or inefficiencies in building systems, such as HVAC or lighting. Continuous commissioning ensures that building systems operate optimally over time by continuously monitoring performance and making adjustments as needed.
Facilio’s platform offers rule library, rule builder, root cause, cost impact, and automated alarm to work order features. These features help analyze root causes, assess cost impacts, and automate processes to improve operational efficiency and maintenance effectiveness.
Manaswini Rao
4. Automated Compliance: Softwares that eliminates the use of manual process to ensure licenses and insurance for a company's assets should be prioritized.
Facilio's platform revolutionizes compliance by automating key processes for clients, vendors, and compliance teams. For clients, mobile inspections with automated deviation activities ensure buildings are health and safety compliant.
Vendors benefit from a single portal for document uploads and work completion. Automated compliance checks ensure adherence to standards. The platform also generates automated audit reports and scoring mechanisms, effortlessly showcasing performance metrics.
5. Automated Workflow: To improve productivity streamlining workflow can reduce manual interventions and staff frustrations with cumbersome processes.
Facilio's platform does this by integrating key processes into a centralized platform, eliminating the need for separate systems or manual tracking in Excel.
For SLA processes, the software offers a flexible SLA policy builder and automated escalations and workflows, ensuring timely compliance with sustainability targets and reporting requirements.
Similarly, for vendor processes, the platform provides the same features, allowing for efficient management of vendor relationships and adherence to ESG standards.
6. Asset Visualization: Asset visualization tools provide real-time visibility into the performance of individual assets (e.g., HVAC units, lighting systems) across portfolios of buildings. This allows users to track asset condition, performance, and maintenance needs.
Facilio's asset visualization features help optimize energy-consuming assets by providing reporting on asset health and energy consumption. It provides real-time IoT insight to automate work orders and optimize asset performance. Additionally, predictive analytics detects anomalies, sets alarms, and identifies root causes for alarm triggers.
Choose the right ESG reporting software
Given the changing regulatory landscape and investor and customer demands for better transparency, investing in ESG reporting software has become imperative. However, traditional legacy systems don’t give users peace of mind. They are rigid, difficult to adapt, and have a long implementation duration.
Instead, you can opt for connected CMMS and ESG reporting software such as Facilio. In addition to the ESG reporting features mentioned above, Facilio stands out because it connects systems, people, and processes in a single platform. It will easily integrate with your existing tech stack (such as ERPs, CRM etc), provide relevant insights for stakeholders, and help automate your workflow.
Staying compliant and incorporating sustainability practices into your business operations will not only help you avoid hefty fines but also enhance your company’s reputation as environmentally responsible.
FAQs:
1. What are ESG reporting tools?
ESG reporting tools are software that help organizations manage, track, and analyze ESG-related data. They collect data from various sources and analyze it so that end-users can identify insights. For instance, they might reveal that a company's carbon emissions have decreased over the past year, indicating progress in environmental sustainability efforts.
2. Which are the three pillars of ESG?
The three pillars of ESG are:
1. Environmental: This pillar focuses on a company's impact on the natural environment, including aspects such as carbon emissions, energy efficiency, waste management, and resource conservation.
2. Social: The social pillar pertains to a company's relationships with its stakeholders, including employees, customers, communities, and suppliers. It encompasses issues like labor practices, human rights, diversity and inclusion, health and safety, and community engagement.
3. Governance: Governance relates to the systems and processes by which a company is directed and controlled. It includes factors such as board diversity, executive compensation, shareholder rights, transparency, ethics, and risk management.
3. What types of organizations can benefit from using ESG reporting software?
Various types of organizations can benefit from using ESG reporting software. These can range from large corporations, investment firms, government organizations, to real estate companies. Overall, any organization seeking to improve its sustainability performance, enhance stakeholder engagement, and drive positive social and environmental outcomes can benefit from implementing ESG reporting software.
4. Want to know how Facilio can help you with ESG reporting?
As sustainability increasingly becomes a strategically important part of the executive's agenda, it is vital to leverage technology to gain an early competitive advantage.
While there are many point solutions available it might become difficult to manage with scale.
It is important that your tech stack accommodates your current priorities but also supports more advanced methods of energy management to demonstrate energy maturity as you scale.
Facilio's Connected Buildings solution offers a complete toolkit for decarbonization, whether you're just starting out with your sustainability initiatives or have multiple systems in place.
We'd love to hear about your priorities and demonstrate how Facilio can help you improve energy efficiency at scale and see RoI in only weeks from deployment to help achieve decarbonization with data-driven insights.
