10 Must-Have ESG Software Features

Managing non-financial data efficiently has become a critical priority for businesses. With growing regulatory requirements and increased stakeholder expectations, organizations must ensure that their ESG reporting software is future-proof, efficient, and adaptable. Choosing the right ESG software features can streamline sustainability reporting, improve compliance, and enhance decision-making.

Here are the 10 must-have ESG software features that will elevate your non-financial data management strategy.

Index

Automation for ESG Data Collection and Validation

Manually collecting ESG data is time-consuming and prone to errors. An automated ESG software simplifies data gathering by integrating with enterprise resource planning (ERP), HR, and sustainability platforms and by creating efficient workflows. This reduces manual input, improves accuracy, and ensures compliance with frameworks like CSRD, GRI, and TCFD.

Besides, modern ESG software should offer powerful internal and external data collection workflows with automated recalls to ensure timely data submission. Having a system that proactively follows up with contributors enhances data accuracy and compliance, eliminating bottlenecks in ESG reporting.

APLANET Case Study: Walmart México & Centroamérica improved efficiency drastically by implementing APLANET, reducing the time required for annual sustainability data collection from six months to just two months.

According to Edgar Hoth, ESG Manager at Walmart Mexico: “The truth is that it has helped us to increase our time, be more agile and improve many processes with the information. We have a better level of control and a correct administration of the information.”

User-Friendly and Intuitive Interface

Adopting new technology should not be complicated. The best ESG software features include an intuitive dashboard, minimal learning curve, and easy data visualization. A user-friendly interface encourages cross-departmental collaboration and ensures seamless adoption across teams.

Flexibility and Scalability for ESG Metrics and KPIs

Every organization has unique sustainability goals and regulatory requirements. A flexible ESG platform allows companies to customize KPIs, reporting structures, and sustainability frameworks based on its specific needs. This adaptability ensures long-term usability and relevance. Additionally, as businesses grow and evolve over time, scalability becomes crucial. ESG software must be able to accommodate increasing data complexity, expanding reporting requirements, and new regulatory frameworks to support long-term sustainability strategies.

APLANET Case Study: Portobello Capital faced significant challenges in collecting ESG data from multiple portfolio companies. By implementing APLANET’s software, they transitioned from Excel-based manual processes to an automated, centralized system, improving efficiency and ensuring scalability as their investment portfolio expanded.

Marisa González, Investor Relations at Portobello Capital, stated: “APLANET is fundamentally a time saver and provides the possibility of having a place where we have all the information centralized.”

Seamless Integration with Existing Systems

Your ESG software should not function in isolation. Look for solutions that offer API integrations with existing systems, such as financial, HR, and supply chain management tools. This ensures real-time data synchronization and eliminates duplicate work.

Audit-Ready and Compliance-Focused Reporting

With regulations like ESRS, XBRL, and SEC climate disclosure rules, businesses need software that ensures audit-ready ESG reporting. Choose a platform with built-in compliance features, detailed logs, and traceability tools to simplify audits and reduce compliance risks.

APLANET Case Study: Dominion used APLANET to unify all non-financial data across divisions, reducing human errors and ensuring regulatory compliance. The software streamlined their Scope 1, 2, and 3 emissions calculations, improving the transparency and accuracy of ESG disclosures.

Gabriela Martin, Global Risk and Compliance at Dominion, emphasized: “The amount of information we are able to manage and report at any given time has increased significantly. The platform has allowed us to unify concepts and permeate them from the top-down.”

Advanced Data Security and GDPR Compliance

Handling sensitive ESG data requires enterprise-grade security. Your ESG reporting software should offer encryption, role-based access controls, and GDPR compliance to protect against breaches and unauthorized access.

Robust Supply Chain ESG Data Management

Scope 3 emissions and supplier sustainability data are crucial for comprehensive ESG reporting. A powerful ESG software should provide supplier engagement tools, emissions tracking, and risk assessments to ensure transparent and responsible sourcing.

AI-Powered Insights and Predictive Analytics

Leading ESG software leverages AI and machine learning to provide predictive analytics, risk forecasting, and automated sustainability recommendations. These insights help organizations stay ahead of regulatory changes and identify opportunities for ESG improvements.

Support for Multiple ESG Reporting Frameworks

Your ESG platform should support multiple reporting frameworks, including:

Global Reporting Initiative (GRI)
Sustainability Accounting Standards Board (SASB)
Task Force on Climate-Related Financial Disclosures (TCFD)
Corporate Sustainability Reporting Directive (CSRD)

Having a multi-framework approach ensures your ESG disclosures remain versatile and globally recognized.

Dedicated ESG Expert Support and Customer Service

Having access to ESG experts for technical support, compliance guidance, and training is a game-changer. Choose ESG software providers that offer live chat, email, and phone support, ensuring that your team gets timely assistance.

APLANET Case Study: Banco Caminos leveraged APLANET to simplify the compliance process under Spain’s Non-Financial Reporting Law 11/2018. The platform’s expert training and support helped streamline sustainability reporting and ensured full compliance.

Carmen Agenjo, Head of Communication at Banco Caminos, shared: “The use of the tool is intuitive for both the people who report and those who validate.”

Conclusion: Future-Proof Your ESG Software Selection

Investing in the right ESG software features ensures efficiency, compliance, and sustainability success. By prioritizing automation, security, flexibility, and expert support, businesses can future-proof their non-financial data management strategies and enhance their ESG performance.

Ready to Upgrade Your ESG Software? Explore APLANET’s cutting-edge ESG management and reporting software and take your non-financial data reporting to the next level. Get a demo today!