11 Key Questions to Select the Best ESG Reporting Solution for your Organisation

Note: While the ESG reporting landscape is expected to evolve with the official publication of the Omnibus regulation, these questions remain relevant to prepare for any sustainability reporting framework.

For many companies under CSRD/EU Taxonomy's scope—most of which must publish their first reports in 2026—ESG reporting is uncharted territory. Sustainability teams may be newly formed or lack prior experience with such frameworks, which are often evolving, intricate, and difficult to interpret. These challenges not only complicate compliance efforts but also place additional pressure on employees, who must quickly adapt to new requirements while managing tight deadlines. Choosing the right ESG reporting solution can alleviate much of this burden, offering the guidance and structure needed to streamline the process and ensure compliance.

Among others, a robust solution should simplify compliance, support transparency, and help you navigate the increasing complexity of frameworks like the CSRD and EU Taxonomy. In this article, we share insights gathered from working with companies across various industries on their ESG reporting journey, condensing them into key questions to help you find the best solution for your needs. Let’s dive in!

Why the Need for an ESG Reporting Solution?

It is important to first evaluate whether you need specialised software or if continuing with Excel is still viable. In most cases, a dedicated tool proves to be a game-changer. Managing sustainability data is complex; collecting, consolidating, and ensuring the accuracy of large volumes of data from multiple sources while meeting reporting and audit requirements is nearly impossible without the right technology. 

An ESG reporting solution streamlines these processes, significantly improving efficiency and accuracy while providing valuable insights into sustainability performance, allowing your company to focus more on making meaningful progress toward its sustainability goals. Let’s explore in this article how to select the best ESG reporting solution for your organisation.

Before Selecting an ESG Reporting Solution

Involve the Right Stakeholders

Building the right ESG team is essential for selecting and implementing an effective reporting solution. Since ESG reporting spans a wide range of topics—from GHG emissions to social equity—it requires input and collaboration from multiple departments to ensure accuracy and compliance. Breaking down silos and integrating expertise from different areas will help create a more complete and strategic report.

• Project Lead: Manages the project and ensures timelines are met.
• Data and Topic Owners: Collect and validate the required data.
• Sustainability Team: Aligns reporting with the company’s sustainability goals.

Additionally, involving a finance representative in the selection process can help clarify budget allocations and reinforce the strategic value of the investment.

Get Started on CSRD Well in Advance

Many companies underestimate the time needed to prepare for CSRD compliance, often assuming that FY 2025 will be a flexible trial year. This misconception can result in rushed reporting and missed deadlines. For a mid-sized company, solely completing a DMA aligned with EFRAG standards typically takes three to four months. To stay on track, begin preparations early and ensure your team has the time and resources needed to meet regulatory requirements.

Discover how to create your ESG reporting strategy in 10 steps.

11 Questions to Choose your ESG Reporting Solution

Now that you have established your strategy, it is time to select your ESG reporting software. Although it may vary depending on your specific context, here are 11 questions to help you choose the option that best aligns with your organisation's unique requirements:

1. Does the ESG Reporting Solution Fit your Budget?
2. Does the Solution Meet Current and Future Regulatory Requirements?
3. Is the ESG Reporting Solution User-Friendly?
4. Can the ESG Solution Easily Integrate with Existing Systems?
5. What is the Scope of its Data Collection and Consolidated Reporting Capabilities?
6. Does the ESG Solution Offer Automation Features?
7. Is the ESG Reporting Software Customisable?
8. What Level of Support does the ESG Reporting Solution Offer?
9. How Secure is the ESG Reporting Software?
10. Does the ESG Reporting Software Provide Audit-Ready Reports?
11. Is the ESG Reporting Solution Scalable?
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1. Does the ESG Reporting Solution Fit your Budget?

The first step is to determine whether the ESG reporting solution aligns with your organisation’s allocated budget for sustainability reporting. If additional funding is needed, you may need to make a strong case to your finance team and key stakeholders, emphasising the strategic benefits of ESG reporting and the risks of non-compliance.

Notably, CSRD reports for FY 2025 will undergo limited assurance audits before transitioning to reasonable assurance in subsequent years. Furthermore, many countries have already implemented penalties for non-compliance, ranging from fines to imprisonment, depending on the jurisdiction. Once the budget is approved, the next step is to evaluate whether the ESG solution offers the right features to meet your organisation’s needs.

2. Does the Solution Meet Current and Future Regulatory Requirements?

The regulatory landscape for ESG reporting is constantly evolving, driven by the demand for greater transparency and standardisation. Keeping up with these frequent and complex changes can be challenging for companies, as it requires specialised expertise and dedicated resources. 

To navigate this dynamic environment effectively, your team must remain proactive, vigilant, and well-versed in the latest regulatory developments. The solution you choose will empower your organisation to adapt to such adjustments seamlessly, minimising the time and effort required from your team.

An example is the discussion around the Omnibus Regulation, which aims to streamline ESG reporting by harmonising key frameworks such as CSRD, the EU Taxonomy, and CSDDD. While some businesses may feel uncertain about how these changes will impact their reporting efforts, delaying preparation comes with significant risks. ESG reporting requirements are here to stay, and companies that take proactive steps now will be in a stronger position to adapt seamlessly, ensuring long-term compliance, financial stability, and a competitive edge.

Greenomy’s regulatory team closely monitors these developments, ensuring that our solution remains aligned with evolving requirements. Paired with a reporting solution designed for adaptability and leveraging granular data points aligned with XBRL requirements, Greenomy ensures that organisations are equipped with the tools needed to navigate an evolving regulatory landscape.

3. Is the ESG Reporting Solution User-Friendly?

ESG reporting involves multiple stakeholders across various departments, entities, and often different countries and regions. Many of these stakeholders may not have a background in sustainability or a deep understanding of the frameworks they need to contribute to. 

As our partner PwC highlights, the process is further complicated by the need for cross-departmental collaboration, such as sustainability, finance, HR, risk management, and commercial, who often don’t "speak the same language". For this reason, it is important to choose a solution that is intuitive, easy to navigate, and accessible to all users.

Here are a few features to prioritise to improve your team’s user experience:

• User-friendly Interface: A user-friendly solution will offer clear, step-by-step pathways to help users complete their tasks, regardless of their level of expertise.
• Workflow Feature: Advanced ESG softwares offer interactive workflows that enhance collaboration among team members and enable validation from superiors, ensuring secure and seamless information sharing while minimising delays and preventing data loss in the reporting process.
• Regulatory References and Background Information: The ESG reporting software should provide comprehensive, context-specific information on relevant legislation directly within the interface. By eliminating the need to search for clarifications externally, users can save time and focus without being overwhelmed by the abundance of information available online.
• Multilingual Support: Given that many companies operate across multiple countries, multilingual support is an essential feature. Advanced tools accommodate a range of languages, allowing employees to work in their preferred language, making it easier to understand and navigate legislation while contributing to the reporting process.
• Standardised Reporting Language: While the ESG reporting software may support multiple languages for ease of use, it should also ensure a standardised reporting language for the final output to maintain consistency and coherence across the organisation.
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4. Can the ESG Solution Easily Integrate with Existing Systems?

For many mid-size and large companies, data collection is already well-established with tools like ERP and CRM systems managing large volumes of information. Most sustainability reporting standards require the accurate reporting of hundreds of data points, such as Scope 1, 2, and 3 emissions required under ESRS E1. 

Manually transferring the 1,200+ data points covered in the Directive into a new ESG reporting software is not only inefficient but also prone to errors and duplications. A complete ESG reporting software should offer seamless integration with your current systems, enabling automated data imports and updates. This capability ensures that emissions data, HR-related inputs, and other key ESG metrics are accurately captured and consolidated. Integration is particularly valuable for managing annual changes, where manual adjustments would otherwise require significant time and effort.

Adopting a data lake architecture is a good way to address the challenges of collecting, standardising, and managing vast amounts of ESG data. This approach provides flexibility, data quality, and traceability across structured and unstructured data sources, such as employee data or energy consumption records.

Recognising these needs, Greenomy developed its ESG Data Library, embedded within the reporting platform. The ESG reporting solution allows companies to integrate granular data seamlessly using customisable import templates or a wide array of connectors, facilitating efficient, centralised data management.

5. What is the Scope of its Data Collection and Consolidated Reporting Capabilities?

A robust ESG reporting solution is designed to handle the complexities of consolidated reporting, especially for organisations with multi-tiered structures. It should support the configuration of intricate hierarchies, such as "groups of groups," while also allowing for detailed data management at the level of individual sites or business units. This flexibility ensures that all relevant data can be accurately captured, consolidated, and reported.

In line with regulatory guidance, such as ESRS 1, paragraph 62, the scope of entities included in the ESG report should align with the financial statements. For example, the sustainability statement for a parent company preparing consolidated financial statements should cover the entire group, including subsidiaries and entities under operational control for specific data points. In areas like Scope 1 and Scope 2 emissions, pollutants, and site-level impacts, operational control is key to determining the extent of reporting, ensuring consistency and compliance.

6. Does the ESG Solution Offer Automation Features?

One of the key advantages of a well-designed ESG reporting solution is its ability to automate complex requirements while improving data quality and accuracy. Automation can take various forms, such as 

• AI-generated responses based on data provided, 
• automated consolidation of quantitative data from multiple sources (as discussed earlier), 
• features that enable the reuse of consistent qualitative data across reporting cycles.
  
  

These capabilities allow stakeholders to reproduce previous work with minimal effort, freeing up time for other tasks that may be more time-consuming and require direct manual engagement.

AI tools significantly streamline the collection and processing of data, saving time and resources while reducing the risk of human errors. For example, with Greenomy’s Write from File feature, powered by its AI advisor, Artemis, users can upload relevant documents, such as past ESG reports, directly to specific data points. The system scans the uploaded file, interprets the content, and generates an answer tailored to the requirements of the selected data point, while also referencing sources to ensure audit compliance.

AI tools also enhance scalability by allowing organisations to efficiently review and reuse previous responses. For example, Artemis, allows users to assess answers provided in earlier reporting cycles, make necessary updates where applicable, or retain the same input if no changes are needed. This granular review process supports accuracy while minimising redundancy and effort.

While automation offers clear advantages, it should be complemented by human validation processes. AI-powered tools can streamline reporting and reduce errors, but stakeholders remain responsible for verifying outputs to uphold the accuracy and reliability of the final report. This balanced approach ensures both efficiency and integrity in the ESG reporting process.

7. Is the ESG Reporting Software Customisable?

While regulators continuously update ESG reporting guidelines to reflect market feedback, it is impossible to cover every sustainability topic relevant to every organisation. This is why the ability to customise reporting frameworks is an essential feature for many companies striving to be thorough and fully transparent in their ESG reporting.

Tailored questionnaires and frameworks allow organisations to address their unique complexities and specific requirements. While out-of-the-box solutions may work well for many organisations, companies with intricate operations or niche focus areas often need additional flexibility. 

“A bank may face cybersecurity threats that could impact the social factor if sensitive data is stolen—a risk that may not be as relevant for other industries,” explains Lieselotte Suys, Sustainability Analyst at Greenomy.

This highlights the importance of customisation in accommodating industry-specific risks and opportunities. An effective ESG reporting software will balance ready-to-use templates with robust customisation options. This ensures that all relevant topics are captured without overwhelming users, enabling organisations to generate detailed, accurate reports while addressing their unique needs.

8. What Level of Support does the ESG Reporting Solution Offer?

Before selecting an ESG solution provider, assess how much support your organisation requires and to what extent. Does your team already have experience with ESG reporting and may not need support beyond updates on the regulation? Or are you just beginning your ESG reporting journey and in need of more hands-on guidance?

Since ESG reporting involves multiple departments, most stakeholders will need some level of training on the regulation before the project begins. This ensures they understand reporting requirements, the objectives, and how their role fits into the broader compliance process. Investing in training early on can help foster collaboration and prevent roadblocks down the line.

Support can vary significantly—from simply reviewing and validating your team’s work to helping build the entire report from scratch. Consider whether you will need ongoing assistance, such as guidance from a customer success manager, access to expert advisors, or more intensive involvement throughout the project. 

It is also worth asking if the support offered is designed to empower your team over time. Greenomy involves your team throughout the process to ensure you reach ESG reporting autonomy for years to come. Collaborating with sustainability experts like Greenomy offers valuable guidance and support, ensuring your organisation not only meets regulatory requirements but also utilises its sustainability reporting as a strategic asset. Such a tailored offering that meets your specific needs is key to ensuring both short-term success and long-term self-sufficiency.

9. How Secure is the ESG Reporting Software?

Much of the data processed in an ESG report is highly confidential and needs to be handled with high-security measures. A breach of this confidentiality could have severe consequences, not only damaging the reputation of the company doing the reporting but also taking a toll on customer trust. In addition to implementing robust security processes and controls to help clients comply with industry standards, regulations, and certifications, the provider must ensure that all data is carefully safeguarded.

Additionally, access to sensitive information should be strictly limited, ensuring that only authorised individuals have access to the data they need. Access rights must be carefully managed to protect privacy and maintain the integrity of the information being handled.

Greenomy’s ESG reporting solution ensures robust data protection by adhering to ISO 27001 and ISO 27701 certifications, as well as achieving SOC 2 compliance. Hosted on Microsoft Azure, the platform benefits from reliable infrastructure that ensures scalability, stability, and security. These measures provide a strong foundation for information security and privacy.

10. Does the ESG Reporting Software Provide Audit-Ready Reports?

To produce reliable, audit-ready reports, the ESG reporting solution should align with auditor expectations. As mentioned earlier, the CSRD serves as a prime example as it introduces demanding assurance to enhance the credibility of sustainability disclosures. Starting with limited assurance engagements from the first year of reporting, the CSRD emphasises the importance of transparent, reliable, and auditable reporting practices.

To meet these rigorous expectations, a robust ESG reporting solution should enable users to attach supporting justifications throughout the reporting process. This allows auditors to easily trace the sources of provided answers and verify the accuracy of disclosures. Additionally, maintaining a detailed audit log ensures that all changes are trackable, fostering accountability and compliance with standards like the CSRD.

Furthermore, some auditors may prefer to be involved early in the reporting process. To accommodate this, a solution that offers a "read-only" access option is a plus, enabling auditors to observe progress and ensure compliance without the ability to make changes. 

11. Is the ESG Reporting Solution Scalable?

As ESG regulations evolve and businesses grow, a reporting solution must be able to scale seamlessly. This means not only handling larger volumes of data but also adapting to regulatory changes, and supporting increasingly complex organisational structures. A scalable ESG reporting platform should ensure continuity and efficiency, regardless of company size or industry.

Many of the key scalability factors have been covered in the previous sections, so to summarise:

1. A scalable platform must accommodate companies of all sizes, including those experiencing rapid growth and increasing reporting complexity. It should support detailed data consolidation across intricate organisational structures while maintaining granular control at the level of individual sites or business units. This ensures accurate, efficient data management without requiring added manual effort.
2. The ESG reporting landscape is continuously evolving, with new frameworks and requirements emerging regularly. A scalable solution should not only help companies remain compliant today but also adapt to future regulatory updates without major disruptions. Since staying up to date with these changes can be resource-intensive, the platform should provide tools and guidance to help organisations adjust without requiring in-depth regulatory expertise in-house.
3. AI enhances scalability by automating key aspects of the reporting process, such as data consolidation, validation, and target tracking. As reporting demands increase, AI ensures the platform can handle large volumes of data without additional manual effort.
4. A truly scalable platform facilitates collaboration across large organisations with complex internal structures. It ensures that multiple teams across the company can easily contribute to and oversee reporting efforts without creating bottlenecks. As the platform grows, these collaborative efficiencies ensure it continues to support diverse reporting needs while maintaining a streamlined, user-friendly experience.
   
   

By addressing these elements, a scalable ESG reporting solution not only meets your current needs but is also well-equipped to evolve alongside your organisation and the regulatory landscape.

Take the Next Step in Your ESG Reporting Journey

ESG reporting is complex, and every organisation has unique requirements, which is why it is important to choose the right reporting solution. Greenomy was designed to tackle ESG reporting challenges outlined in this article, drawing from hands-on experience and close collaboration with organisations navigating compliance. Book a call to discover how Greenomy supports your specific needs.