The EU’s new Corporate Sustainability Reporting Directive (CSRD) came into effect on January 1, 2024, mandating over 50,000 EU-based companies to report on hundreds of ESG metrics and targets.Â
While this is great news for enhancing transparency and corporate responsibility throughout Europe, it also means businesses must start preparing for the CSRD as soon as possible.
To help you with that preparation, we’re quickly recapping on what CSRD monitoring and reporting is all about, before showing you which CSRD software tools you can use to support your compliance efforts.Â
The EU’s CSRD requires companies to report on their environmental, social and governance efforts. We wrote an extensive article about it already, which you can read here: The upcoming EU CSRD regulation explained. As a quick summary of that explanation:
The CSRD Directive is a new climate regulation adopted by the EU to expand sustainability reporting requirements for companies. This regulation requires companies to report on their non-financial sustainability information.
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The CSRD falls under the recently officialized European Sustainability Reporting Standards (ESRS) - a set of 10 standards split up under the three pillars of ESG. ESRS E1 – Climate change – has been given special importance by the EU. It is also this standard that requires companies to measure their scope 1, 2 and 3 emissions.Â
The first set of these ESRS has been published, and companies can now start to report on their sustainability efforts.
Navigating the complexities of CSRD monitoring and reporting can be daunting, especially with the new requirements and standards set in place. The first step is understanding the specific metrics and KPIs that need to be reported on.Â
This involves a deep dive into your company's operations, identifying areas that have environmental, social, or governance impacts. Once these areas are identified, data collection becomes key.Â
It's essential to have systems in place that can accurately and consistently gather the required data. This data then needs to be analyzed, interpreted, and eventually reported in a manner compliant with the ESRS.Â
Regular audits of this data ensure its accuracy and reliability, making the role of digital tools and software even more crucial in this process.
Selecting the right CSRD software tool is essential for proper CSRD compliance and reporting. For instance, you should consider the tool's adaptability and scalability. As regulations evolve and your company grows, the software should be able to facilitate this growing complexity without major disruptions.
Hint: one way to figure out if software is somewhat future-proof is to make sure they regularly release new product features. This means it’ll stand the test of time as the CSRD landscape becomes more complex.
Integration capabilities are also vital; the tool should integrate with your existing systems, ensuring smooth data flow and reducing manual work. User-friendliness is another factor; a tool with a steep learning curve can slow down processes and lead to unwanted errors.Â
Also, you should look for software that offers good data security and privacy features. Given the sensitive nature of the data being handled, it's important the tool safeguards this information against potential breaches.
We went ahead and did some of the research for you. Below is a list of our top 7 CSRD software tools. We hope you find one that suits your business’s purposes. Let’s dive in:
Amsterdam-based software startup Coolset is on a mission to help growing companies make better choices for a sustainable future. Its emission management software helps growing companies measure, analyze, reduce, and even eliminate their Scope 1, 2, and 3 emissions.Â
Alongside its measurement and analysis capabilities, Coolset equips businesses with the tools to dive deep into their data, identifying emission hotspots, and presenting sustainable alternatives at every level, from overarching categories to individual vendors.
Its dedicated CSRD module helps startups, SMEs, and mid-market companies (from 20-2000 employees) fast-track CSRD monitoring and compliance.
Website address: https://www.coolset.com/
Pricing: Essential and Committed pricing packages, both custom pricing on request
Target audience: Startups, SMEs and mid-market companies
Category: Carbon Accounting, Decarbonization strategies and CSRD ComplianceÂ
TerGo is a B-corp-certified startup from Poland that helps businesses measure, reduce, and offset their carbon emissions.
Recognizing the increasing importance of carbon management in today's business landscape, Tergo has developed three products to address these needs: Carbon accounting software to track emissions, an app to track Scope 1 and 3 transportation emissions, and carbon credits/offsets to help businesses neutralize unavoidable emissions.
Its carbon accounting platform emphasizes the importance of transparency, ensuring businesses can effectively communicate their sustainability efforts to stakeholders.
Website address: https://tergo.io/
Pricing: Not explicitly mentioned, pricing available on request
Target audience: Companies aiming to manage and reduce their carbon footprint
Category: Carbon Management
With over 15 years of experience in the sustainability, environment, and health and safety fields, Denxpert Solutions offers a comprehensive platform for businesses to manage their environmental, social, and governance (ESG) data.Â
The platform provides tools for data collection, analysis, and reporting, ensuring that businesses can effectively track their ESG performance. Its goal is to make it easy for businesses to comply with environmental and occupational legislation and evolving regulatory requirements.
With a focus on transparency and accuracy, Denxpert Solutions helps businesses make informed decisions and communicate their sustainability efforts to stakeholders. According to Denxpert, prioritizing CSRD compliance in your organization is one of the most important decisions to ensure long-term business growth.
Website address: https://denxpertsolutions.com/en/
Pricing: Not explicitly mentioned, pricing available on request
Target audience: Companies looking to manage and report on their ESG data
Category: ESG Data Management
Headquartered in Portland, Oregon, NAVEX develops solutions to help businesses manage their governance, risk, and compliance programs.Â
One of those tools is NAVEX’s ESG compliance software which consolidates ESG data and reporting in one place. As such, it’s a great tool for CSRD monitoring and reporting.Â
Data collection, analysis, and reporting are streamlined with the tools provided by this platform, enabling businesses to effectively monitor and convey their ESG performance. NAVEX ESG emphasizes transparency and stakeholder engagement, fostering trust and promoting enduring value for businesses.
Website address: https://www.navex.com/en-gb/products/navex-esg-environmental-social-governance/
Pricing: Not explicitly mentioned, pricing available on request
Target audience: Businesses of all sizes looking to manage their ESG initiatives
Category: ESG Management
Founded in 2007, Quentic is a Berlin-based SaaS company that develops solutions for environmental, health, safety, quality (EHSQ), and ESG management. Its cloud-based software also supports CSRD reporting, allowing you to manage your ESG data, carbon accounting, legal compliance, and reporting from a central platform.
Quentic offers features like real-time performance assessment, stakeholder connection, and certification standards. It provides a unified system that handles occupational safety, sustainability, and environmental and quality management digitally.
Website address: https://www.quentic.com/
Pricing: Not explicitly mentioned, pricing available on request
Target audience: Companies aiming for enhanced compliance, safety, and sustainability
Category: EHSQ & ESG Management
Azeus Convene ESG is a digital platform designed to simplify the ESG reporting process. Recognizing the challenges of manual data collection and the increasing demands for auditability, Azeus offers digitized solutions for efficient and accurate data collection.Â
Its end-to-end platform allows businesses to collect data, track progress, compare data with peers, align with industry-leading frameworks, and produce ESG reports. It ensures compliance, consistency, accuracy, and comparability of sustainability reporting, making the ESG journey smoother for businesses.
When it comes to CSRD compliance, the platform gives you best practice recommendations from experts and lets you define the scope of your report using flexible reporting templates to guarantee full compliance.
Website address: https://www.azeusconvene.com/esg
Pricing: Not explicitly mentioned, pricing available on request
Target audience: Sustainability report writers and board executives or directors
Category: ESG Reporting
With over 20 years of experience, Enablon ESG by Wolters Kluwer is an ESG reporting solution designed to simplify the complexities of ESG reporting.
The platform automates ESG data collection and helps businesses to integrate it into strategic business decisions. It empowers businesses to go beyond mere ESG reporting and weave ESG into all aspects of their operations.Â
This approach helps to mitigate ESG risks, uncover new opportunities, and improve overall ESG performance. The platform emphasizes data quality, accuracy, and auditability, ensuring that businesses can confidently communicate their ESG efforts.
Website address: https://www.wolterskluwer.com/en/solutions/enablon/esg
Pricing: Not explicitly mentioned, pricing available on request
Target audience: Businesses aiming to integrate ESG into their operations and strategy
Category: ESG Data Collection and Reporting
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Given the complex nature of sustainability reporting, businesses are turning to CSRD software to do the heavy lifting for them. Below are some common questions and answers about what CSRD software does and why it’s important.
The introduction of the CSRD marks a huge step forward toward the green transition, yet preparing an ESRS report is no simple feat.Â
One sustainability expert estimated that it takes around 375 hours to compile data for the CSRD’s extensive 1,100+ disclosures across 12 categories – a number that could increase substantially for those less familiar with the process.
CSRD software streamlines a lot of the intricate and time-consuming processes. It has built-in checks to ensure your data fully complies with leading standards like the CSRD and the Greenhouse Gas Protocol.Â
Not only does this save you time but it also offers peace of mind that your reporting is accurate and fully compliant with today’s complex and evolving regulatory demands.
CSRD reporting software is a powerful tool designed to streamline your sustainability reporting processes. Here are some key things it can do:
Reporting under the CSRD is a massive undertaking, and old-school spreadsheets will only get you so far.Â
CSRD software is designed to simplify this process. It aggregates emissions data from multiple sources, identifies reduction opportunities with the greatest impact, and generates automated reports tailored to your needs.
By investing in CSRD software, you’re not only ensuring compliance but also significantly fast-tracking your efforts – turning a seemingly daunting task into a manageable process.
From conducting a double materiality assessment to understanding the difference between Scope 1, 2, and 3 emissions, CSRD compliance requires getting your head around a new set of concepts and terminology.Â
To make things easier, we created a dedicated CSRD glossary – your go-to resource for all the CSRD-related keywords and abbreviations out there, as listed in the ESRS.
For some businesses, CSRD isn’t optional. These companies shouldn’t hesitate before getting started with CSRD monitoring and reporting. Companies meeting two of the following three criteria must start reporting in line with the CSRD by 2025:
For listed small-to-medium enterprises (SMEs), CSRD reporting will become mandatory from 2026 onwards. Â
While this timeline for companies may seem far away, there are multiple reasons to start your sustainability efforts today.
Mapping your carbon footprint will enable you to create actionable and effective sustainability strategies, and it will show the results of your actions. It allows you to integrate these practices at your own pace, making sure they are a part of your organisation instead of a one-off project.
Additionally, your company can position itself as an industry leader and substantiate sustainability claims with data.
Want to know more about the CSRD, how to become compliant or how companies like Coolset can help you with this? Request a demo today.
Become compliant with Coolset's CSRD compliance platform
Become compliant with Coolset's CSRD compliance platform
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