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With the rise of advanced CSRD software, keeping up with the CSRD (Corporate Sustainability Reporting Directive) requirements got much easier — even though expectations to meet its demands are still high.
The CSRD calls for organizations to better track their ESG and transparently disclose their metrics. However, meeting these standards doesn’t have to be overwhelming or time-consuming. The right CSRD-focused software can collect ESG data, analyze it, and report as per requirements on your behalf.
To get you started, we’re guiding you towards choosing the best CSRD tools for your needs, taking into account constantly changing demands as well as the actual capabilities of these tools.
What is CSRD software?
CSRD software allows organizations to comply with the Corporate Sustainability Reporting Directive (CSRD) through automated or intelligent data gathering, management, analysis, and reporting. In most cases, the tool you choose will offer a more comprehensive approach to ESG reporting in general, with CSRD being one of its strongest assets, but not the only one.
In general, CSRD software will also help your organization stay compliant without your team having to put in the manual work. By automating data collection, speeding up metric analysis, and creating reports, you can use these tools to stay transparent, improve sustainability reporting, and meet investor expectations — beyond the CSRD.
Why invest in CSRD software tools?
Let's zoom in on how CSRD software tools can help you keep up with sustainability requirements even when disclosure updates seem more frequent than ever.
CSRD compliance is mandatory
CSRD reporting is not voluntary. All companies that meet the eligibility criteria need to provide transparent, standardized sustainability reports to avoid penalties. CSRD software tools ensure that your organization meets these requirements on time and without human errors.
You won’t have to keep doing things manually
At present, CSRD reporting mandates only large enterprises to disclose their impact. Large enough to get lost in their data, even if you hire an army of human resources to keep up with it. CSRD tools automate data work and reporting. Plus, it’s all done in real time so you can access the relevant data at any point.
You’ll be preventing human blunders and inconsistencies
It’s not just the CSRD. You also need to keep up with requirements from the CSDDD, CDP, and TCFD. This diversity of directives and frameworks you need to respect puts your organization at a higher risk of error. With the right tools in place though, this won’t be the case.
CSRD software is not costly
When you factor in all the penalties you’re not paying for mistakes and delays, CSRD software platforms don’t cost much and bring you a very high ROI. Automating also saves you a lot as you won’t need as many people focusing on labor-intensive manual work.
It helps manage and prevent risks
48% of companies that need to comply with the CSRD say the directive helps them mitigate risks. An efficient CSRD reporting software reduces the risk of overlooking critical ESG factors such as environmental impact, social responsibility, or governance. It can also help you to stay on top of emerging risks, such as supply chain problems or non-compliance.
Key functionalities to look for in CSRD software
Here are the top features you’ll want to have when it comes to reporting for CSRD purposes.
CSRD-specific reporting templates
Ready-made templates that are built for the CSRD make it easier for you to update reports using automated data formats. Templates in general prevent manual formatting errors and keep your reports compliant with CSRD regulations.
Automated data collection and management
Automation takes the stress away by pulling in millions of data points from multiple internal and external sources. At this point, you'll want to consider if the CSRD tool integrates with data solutions you're already using to make this process easier.
Real-time data tracking and analytics
Monitoring CSRD KPIs can be done through dashboards that automatically get updated whenever new metrics are added so you can identify and address performance gaps in time for new reporting deadlines.
Compliance management and regular updates
Look beyond the tools that offer compliance with the CSRD only so you can keep up with other directives and frameworks using a single solution. Your next tool should send you regular updates and reminders whenever a change happens to a regulation and help you stay compliant by automatically adjusting its reporting to meet these new requirements.
Stakeholder and full audit trail for CSRD reporting metrics
CSRD software will do more than just reporting. They'll help you track stakeholder communications and provide them with an audit trail, making it easier to verify the accuracy of your reports.
Customizable reports for different stakeholders
Every stakeholder is likely to want to see something else. You should be able to customize reports depending on their needs and expectations.
Risk management and materiality assessment options
Look for a tool that lets you conduct Double Materiality Assessments (DMA) to identify the most critical CSRD factors for your company. The perfect software will give you even more insights into risks your company is exposed to, such as climate change impacts or social risks.
Top 8 CSRD reporting software to investigate this year
We've compiled a list of the top CSRD software options that cater to a wide range of teams, company sizes, and industries.
1) ESG Flo – top-tier CSRD software for enterprises
ESG Flo is the best CSRD software solution you can use to ensure efficiency and keep your reporting under control. The tool allows you to instantly turn raw data into audit-ready CSRD metrics and stay compliant with the directive and other reporting guidelines from the SEC, GRI, SASB,TCFD, etc.
Its native AI technology automates data collection and processing from diverse sources such as HR systems, ERP extracts, supplier data, or geospatial data. It then automatically generates reports tailored to any framework, including CSRD.
Use cases and AI
- ESG Flo’s AI pulls data from utility invoices in multiple formats and languages, using Large Language Models and Optical Character Recognition for higher accuracy and consistency in the final financial disclosures.
- The tool scans documents to identify and extract the relevant sections that address CSRD disclosure requirements so you can gather qualitative data faster.
- The AI looks at data trends in real time, highlighting anomalies or inconsistencies so you can create accurate, reliable reports and spot potential issues early.
- ESG Flo’s AI gives you recommendations on the most appropriate emission factors while also calculating your Scope 1, 2, and 3 emissions.
‘We’ve automated a very manual process, saving time and resources for other projects. It’s been better tracking, a single source of truth, and much higher visibility,’ says Samuel Shiroff, Senior Director Global Sustainability at EnerSys.
Besides extensive CSRD functions, ESG Flo also provides expert support with things like double materiality assessments, gap analysis, and CSRD-specific submissions.
‘This is a one-stop-shop for us. We don’t have to go to multiple data owners to get information. The tool does exactly what we need it to.’- Sonali Samani, Head of Environmental, Social and Governance at IWG.
2) Ecocharting – Best for companies that only need CSRD reporting
Ecocharting is a sustainability data platform with a focus on CSRD only. It helps you conduct double materiality assessments and conclude which ESG topics need to be addressed first for CSRD reporting. The tool pulls both quantitative ESG metrics and qualitative feedback on current sustainability practices.
It's important to note the tool was built for the CSRD so it doesn't extend to many other international directives and frameworks. While it does a good job at calculating Scope 1-2-3 emissions and keeping your company compliant with the EU Taxonomy criteria, this is where this CSRD management software’s capabilities end.
💡Related: The 12 best ESG software platforms for 2024 + why you need to invest
3) Pulsora – Best CSRD software for simple reporting
Pulsora is a sustainability management platform that is often praised for its clarity and simplicity.
At a feature level, users appreciate how easily the tool collects sustainability data from various company departments. Its built-in carbon accounting tools also make it easier to track emissions and report on sustainability.
However, users say that the simplicity of Pulsora’s reporting, although built for enterprise teams, can also be a limitation at times. Despite expectations, report generation is limited: "Speaking of reporting, it seems to be somewhat constraining. For instance, I can’t tailor trends that pertain to sustainability and coordinate them to the various departments or branches", says one Pulsora user on G2.
4) Workiva – Best for streamlined financial and general ESG reporting
Workiva is an all-in tool, which is great for reporting on both financial and sustainability aspects. Most users like its ability to keep all ESG data collection in a single place. The CSRD compliance software’s native audit trail and real-time document tracking features make reporting straightforward and efficient.
As one user shared, “CSRD reporting is easy and logical to handle. Workiva listens to feedback and helps to improve,” indicating just how responsive the team is to user asks.
However, some users say they need flexibility from their pricing plans, particularly the smaller organizations or those just beginning their CSRD journey. Nadia L., Corporate Strategy Manager and Workiva user, points out that a "CSRD lite" version could provide a more accessible price point to understanding the full benefits of the platform before committing to a higher-tier plan.
💡Related: 5 best Workiva alternatives to try for all things ESG management
5) Watershed – Best for enterprise sustainability programs
Watershed is an enterprise sustainability platform designed to help companies build and execute comprehensive sustainability strategies aligned with their broader business goals. This platform lets you track and manage your climate impact, report on sustainability metrics, and ensure compliance with the latest environmental regulations, including the CSRD, CDP, and more.
With 60+ pre-built integrations, Watershed connects to existing business systems so you can bring your data into the platform. You can use this CSRD tool to track data in real time and get granular information into the status of your data. Once your data is in Watershed, its machine learning technology works behind the scenes to automatically identify gaps and flag anomalies.
💡Related: 5 best Watershed alternatives for ESG reporting and carbon accounting + user reviews
6) Greenly – Best for SMBs and startups
Greenly is a carbon accounting platform, but it can also double as CSRD monitoring software. It helps you collect relevant ESG data and supports you with things like the double materiality assessment.
Eleonora A., a Greenly user, shares that she likes the tool’s ‘ability to convert emissions data into quantifiable measurements improved my understanding of our footprint.’
Similarly, Vikas R., a Data Analyst, mentions that ‘The platform is easy to navigate, and the carbon footprint tracking process is simple and straightforward.’
At the same time, there are a few key areas that need improvement. Eleonora A. herself points out that there should be more customization options for the platform's reporting tools: ‘The pre-built reports are not customizable and only include the most basic stats,’ she says. Similarly, users like Ignacio L. reported sporadic inconsistencies in calculations.
7) Normative – Great for collecting carbon data for CSRD
Normative is a carbon accounting platform that lets businesses track, reduce, and optimize their climate impact with precise data and expert insights. Although this tool can’t function independently as a CSRD platform, it will help you collect a lot of the data you will need to have to report.
Users praise Normative for its intuitive interface and excellent customer support. Still, one user warns the tool might be difficult to set up: ‘It was a bit more manual work than expected to enter data into the platform via their templates.’ Another Normative user remarks that the current overview of results can be impacted by new releases and ‘it can be difficult to track which data has been processed already and which is still in progress.’
8) Novisto – Good for comprehensive ESG reporting
Novisto is a comprehensive ESG data collection tool, part of which is CSRD work. It facilitates standardized disclosures and supports you throughout the whole compliance journey.
Users praise its ability to simplify complex reporting tasks, with many highlighting how the platform integrates various ESG standards and frameworks like the CSRD, allowing businesses to manage and leverage their data across multiple reports and agencies. The tool’s collaborative features make it easy for teams to work together, collecting and validating data from different business units.
While Novisto excels in functionality and ease of use, some users note that it still has room for improvement. Exporting data can be clunky, and less tech-savvy users may find submitting information unintuitive at times. However, users say the Novisto team is responsive to feedback, continuously working to enhance the platform.
💡Related: 5 Novisto alternatives for carbon management and ESG reporting
Want more out of your CSRD software?
If you've already made the case for investing in CSRD software solutions, there are a few steps to take before choosing the best solution for your needs:
- Create a list of the top environmental reporting software for CSRD (like our list of 8 tools above).
- Decide on what your most common use cases will be and what current pain points you want to fix.
- Write down your must-haves and nice-to-haves, including factors like the ability to integrate with existing tools, how much detail the CSRD requires from you, and how quickly you can set up and use the tool.
- Pick one or two of your top choices to try them out to see which ones work best for your own workflows and goals.
ESG Flo is the best option you should try first for measuring, managing, and reporting ESG data in line with CSRD standards. It also comes with tools for calculating carbon footprint and improving sustainability practices. Book a free demo to get a free tour of its CSRD functionality!
