How to Choose the Right ESG Reporting Tool For Your Organization

The threat of climate change isn’t going anywhere soon, and as a result, investors, consumers, and activists are expecting organizations to focus more than ever on sustainability, corporate social responsibility (CSR), and environmental, social, and corporate governance (ESG). Companies can answer stakeholder’s expectations by releasing an ESG report, but that’s where things get tricky. Manually assembling an ESG report is time consuming and tedious. Having an ESG reporting tool streamlines and centralizes the process.

In this article, we’ll explore in detail the benefits of using an ESG reporting tool, then list some things you should consider about your organization’s needs regarding ESG reporting. Finally, we’ll list 8 things to look for in an ESG reporting tool when considering if it is right for your organization.

Let’s dive in!

The Benefits of an ESG Reporting Tool

The alternative to an ESG reporting tool is the trusty old Excel spreadsheet. Notice how we didn’t say “efficient” there! When you are creating an ESG report for multiple buildings and facilities in different areas, an Excel spreadsheet is more of a hindrance than a help, unless you enjoy spending hours manually entering data into fields.

Besides for efficiency, an ESG reporting tool can help you:

Automatically gather your data from multiple buildings and facilities into one place
Process and analyze your energy and sustainability data so you can see how your organization measures up to standardized frameworks (like SASB, GRESB and TCFD) and your own sustainability goals
Make sure your energy and sustainability data is comprehensive complete, and correct

Consider Your Needs

To choose an ESG reporting tool that works for your organization, you’ll first want to do an internal assessment. Here are the top things you should consider:

What the scope of your budget is
What you want to achieve with the tool
Who in your organization will be using the tool
What type of industry-specific metrics you will be using
Who you will be reporting to and what information they will require (this includes frameworks, investors, and other stakeholders)

8 Things That Make Up A Strong ESG Reporting Tool

Choosing the right ESG reporting tool for your organization can feel daunting. We hear you – there are many different features and factors to consider. Each ESG reporting tool on the market differs slightly, so we can’t tell you exactly which one may be right for you – only you can make that decision based on your requirements. What we can do, however, is share 8 things that make up a strong ESG reporting tool.

1. The software should save time and make your reporting process more efficient.

The point of a good ESG reporting tool is to do what Excel can’t, i.e., dispense with manual work and save you time by cutting out tedious steps. In addition, a strong ESG reporting software should be able to assist you with your entire ESG reporting process, from data collection to report generation. That way, you don’t have to have multiple kinds of software to do one job. Finally, the platform should be easily accessible for auditors and rating agencies so they can quickly complete their ratings. The more efficient the reporting process is, the more effort can be put into your organization’s overall sustainability efforts.

2. The platform should be fully customizable to your needs.

A good ESG reporting tool should have the capacity to fully automate all processes. However, it should also allow you to upload important business KPIs or other qualitative energy and sustainability information manually. In addition, the platform should allow you to make customizations like specific data fields, KPIs, alerts, and custom views for different teams (accounting, engineering, sustainability, etc.).

3. The tool should ensure data quality.

It’s no use creating a fancy ESG report if the data has errors. A strong ESG reporting tool should verify your energy and sustainability data for completeness and correctness.

4. The platform should be able to consolidate data across multiple regions.

If your organization has buildings or facilities in different states or countries, you’ll need an ESG platform that can collect all energy and sustainability data from different utility regions and countries and convert it into metrics with common units of measurement.

5. The platform should be able to support users across your organization.

It won’t just be the head of sustainability who ends up using the ESG reporting tool. Your building and facility managers might need to access data to make sure they’re operating correctly to meet sustainability targets. Your marketing department may want access so they can showcase your company’s sustainability progress to the public. Thus, you should look for a platform that:

Lives on the cloud, so that it can be accessed by anyone in your organization
Has a user-friendly interface, and
Has a visual, interactive, & customizable dashboard that is easy to interpret and understand

‍6. The software should give you actionable insights, not just more data.

To truly stand out among all the organizations adopting sustainability commitments, your organization needs to look into the future. A strong ESG reporting tool give you clear, actionable insights into the trends showcased in your data so you can optimize operations.

7. The platform should integrate directly with major sustainability frameworks.

Of course, you want your ESG reporting to track your own custom metrics and the goals you have set for your organization. However, in order to comply with disclosure requirements and pertinent legislation, your ESG reporting tool should integrate directly with the data points needed for frameworks like TCFD, Energy Star Portfolio Manager, GRESB, SASB, and more.

8. The software provider should provide excellent customer service.

Having a good ESG reporting tool is all well and good, but if the software provider is MIA or unhelpful, that’s a problem. A good ESG software provider should:

Help you with the implementation of the software and provide an accurate timeline of implementation. This includes training for your staff and regular follow-up calls.
Answer your questions and feedback in a timely manner.
Quickly fix any issues that arise with the software.
Tell you about new features they are releasing (which should be frequent).

What Next?

Now that you know what to look for in an ESG reporting tool, where can you find one?

WatchWire is a fully integrated energy and sustainability platform that has all the features listed above. Interested in learning more about WatchWire? Check out these three articles, which answer 20 of the most commonly asked questions about WatchWire:

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