ESG stands for Environmental, Social, and Governance. These are standards used to assess how well a company performs in areas related to the environment, social responsibility, and ethical management. ESG reporting is the process of sharing a company’s performance in these areas, offering a full view of how sustainable and responsible the business is.
To report ESG data effectively, companies need to gather information smoothly, process it properly, and present it clearly. Using ESG reporting software helps businesses follow rules, spot risks, and make informed choices that support long-term growth and responsibility.
Top 10 ESG Software Platforms in 2025
- Sweep
- Workiva
- Greenly
- Persefoni
- Watershed
- SustainIQ
- Benchmark Gensuite
- Microsoft Sustainability Cloud
- IBM Environmental Intelligence Suite
- Normative
These platforms provide tools to meet the varied needs of companies in the U.S.
Why ESG Software Is Important for U.S. Businesses
A large majority—87%—of CEOs believe ESG metrics should be part of regular business reporting. This shows how important these factors are in today’s business environment.
As expectations around ethical practices and sustainability rise, more companies are using specialized software to manage ESG efforts. It’s not just about meeting regulations—it’s about using ESG data to make smart choices, stay transparent, and build long-term value.
What ESG Involves
ESG focuses on three key areas:
- Environmental: Includes carbon emissions, how resources are used, managing waste, and how operations affect the climate.
- Social: Covers labor standards, involvement in the community, human rights, and diversity in the workplace.
- Governance: Involves how the company is managed, including board diversity, ethics, openness, executive pay, and handling risks.
Together, these give a clear picture of a company’s social and environmental impact and help investors decide whether to support them.
Why Tracking ESG Metrics with Software Is Essential
Managing ESG data has become a must. With regulations tightening (like the SEC’s climate rules and Europe’s CSRD), and investors focusing more on sustainability, companies need tools to manage and report ESG data efficiently.
ESG software helps with:
- Gathering data in one place
- Automating reports
- Meeting global standards
- Viewing and managing key sustainability metrics through dashboards
Main Challenges in ESG Reporting
Despite growing demand, companies often face these issues when using ESG software:
- Data quality: Especially with Scope 3 emissions and indirect impacts
- Lack of uniform standards: Different regions and industries use different metrics
- Manual work: Can be slow and prone to mistakes
- Pressure to customize reports: Different audiences need different types of reports
How ESG Software Solves These Problems
These platforms can:
- Automate data collection and checks
- Improve accuracy and speed
- Provide custom dashboards and reports
- Help businesses set goals and track progress more clearly
Using ESG tools helps companies meet rules, improve transparency, and better explain their sustainability efforts to others.
Does ESG Software Help with Compliance?
Yes, top ESG platforms are built to support the following:
- SEC rules on climate disclosures in the U.S.
- CSRD and SFDR in the EU
- Standards from GRI, SASB, and TCFD
These tools help gather and check data, and generate reports that meet legal and investor needs. Many platforms offer ready-to-use templates and accurate data sources to make compliance easier.
What to Look for in ESG Software
Flexible Features and Updates
Choose tools that can adjust to changing rules. Look for platforms with live tracking, risk tools, and support for several ESG frameworks.
Complete ESG Coverage
Good software handles all three ESG areas—environmental, social, and governance—and brings together data from across the company.
Automated Data Collection
Automation reduces mistakes and saves time. Look for platforms that collect data from many sources automatically.
Data Integration
Choose a tool that connects information from different parts of the company. This helps with full emissions tracking and better reporting on your overall ESG impact.
Easy Reporting Process
Look for platforms with dashboards and report templates that make it easy to share clear, custom ESG reports.
How ESG Connects with Corporate Sustainability
Corporate sustainability is a big part of ESG. It means managing environmental and social impacts without hurting the business’s financial health. ESG frameworks like the TCFD help guide how companies share their sustainability efforts.
By using a strong ESG reporting process, businesses can prove they are serious about sustainability, build stronger relationships with stakeholders, and improve their public image. ESG tools make this process smoother and help meet different reporting needs.
The Role of Carbon Accounting
Carbon accounting is a key part of ESG work. It involves tracking and reporting a company’s greenhouse gas emissions to understand and reduce its carbon footprint.
Following best practices ensures the data is accurate, which helps set clear goals and track progress. Software helps with this by giving deeper insight into how a company’s operations and supply chain affect emissions.
Best ESG Software for U.S. Companies in 2025
- Sweep
Overview: Uses AI to make sustainability data easy to manage and report.
Features: Custom surveys, emissions tracking, supply chain tools, follows CSRD and SFDR.
Why it works for U.S. companies: Simplifies ESG tasks and supplier tracking while meeting SEC and global standards. - Workiva
Overview: Cloud-based platform for full ESG data control and audit tracking.
Features: Supports ESG and financial reports, includes built-in frameworks.
Why it works for U.S. companies: U.S.-based and built for SEC needs, great for large firms managing both ESG and financial data. - Greenly
Overview: Helps track CO₂ and manage ESG data through simple tools.
Features: Real-time tracking, audit-ready data, shared decarbonization tools.
Why it works for U.S. companies: Though based in Europe, it’s easy to use and growing in the U.S., great for mid-sized businesses. - Persefoni
Overview: Focused on carbon management with AI features.
Features: Tracks carbon, engages supply chain, and supports reduction strategies.
Why it works for U.S. companies: Based in the U.S. and meets SEC standards, strong reporting for public companies. - Watershed
Overview: Helps reduce emissions with strong tracking tools.
Features: Live data, planning tools, third-party sources.
Why it works for U.S. companies: Built for American firms with a focus on real-time climate data and transparency. - SustainIQ
Overview: Offers real-time ESG insights and performance tracking.
Features: Auto/manual data capture, real-time updates, flexible dashboards.
Why it works for U.S. companies: Useful for companies needing clear, flexible reporting tools. - Benchmark Gensuite
Overview: Combines ESG, EHS, and risk management in one platform.
Features: ESG + EHS in one, AI analytics, and custom dashboards.
Why it works for U.S. companies: Good for American energy and manufacturing firms needing all-in-one tools. - Microsoft Sustainability Cloud
Overview: Gathers carbon data from across a company’s operations.
Features: Carbon tracking, audit workflows, strong data controls.
Why it works for U.S. companies: Easily fits into systems already used by U.S. businesses. - IBM Environmental Intelligence Suite
Overview: Combines environmental data with risk planning.
Features: Forecasts, emissions estimates, risk mapping.
Why it works for U.S. companies: Great for planning around U.S. climate risks and building stronger operations. - Normative
Overview: Focuses on carbon tracking and clear reporting.
Features: Scope 3 data, supplier support, emissions planning.
Why it works for U.S. companies: Strong carbon tracking features useful for U.S. firms aiming for net-zero.
Ensuring Accurate Data and Audit Readiness
To report ESG data confidently, companies need accurate, complete, and reliable information. They must have systems in place to collect and organize this data properly.
Using well-designed tools gives businesses the ability to show their commitment to honesty and responsibility. It also helps reduce reputational risks and prepares companies for audits. Understanding ESG metrics and what stakeholders expect is part of this process.
How to Measure the ROI of ESG Software
You can measure return on investment (ROI) through:
- Cost savings: More efficient data handling and less risk
- Investor trust: Clearer reports can lead to more support
- Better decisions: Real-time ESG data helps improve operations
Using ESG tools supports long-term success, protects against rule violations, and strengthens a company’s reputation over time.
