MetaCX provides a framework to manage every aspect of corporate environmental and social initiatives including the internal and external stakeholders involved, desired outcomes, corresponding action plans, and key performance indicators.
Navigating the ESG Software Market
Environmental, social, and governance (ESG) is a framework designed to promote sustainability on a holistic level and identify risks and opportunities related to business endeavors. ESG was founded on the idea that organizations should be environmentally, socially, and corporately responsible.
By investing in these three pillars, companies can expand enterprise value and set a higher standard for others in the business world. In essence, ESG encourages corporations to move beyond the old view of sustainability to this new framework in which sustainability is treated as a multifaceted strategy.
ESG software makes it easier for companies to monitor each of their ESG initiatives. It helps to streamline data collection, standardize reporting, and facilitate seamless communication between stakeholders. Different ESG platforms offer different tools, but they’re all designed to simplify ESG management. Sustainability software companies provide software for businesses to stay on top of their ESG-related tasks.
Some of these solutions partner directly with clients so that, even once they’ve got the software up and running, they can reach out to a team of professionals for help when they need it. Other platforms are installed and operated independently with little to no assistance from providers once the software has been successfully implemented.
With the number of options on the market today, choosing an ESG platform can be extremely difficult. However, by defining your needs and objectives ahead of time, you can more easily filter your options and determine the solution that’s right for your organization.
If you are particularly focused on the environmental aspect of ESG, for instance, you might look for corporate sustainability software that places a special emphasis on environmental responsibility. You should also consider your budget when choosing between platforms. How much can you afford to spend on ESG software? What is your desired ROI? Accounting for factors such as these is crucial to finding the right platform for your business.
Understanding the ESG Software Market
With an increased focus on sustainability throughout the business world, it’s no surprise that the ESG software market is rapidly expanding. In fact, the investor ESG software market is expected to reach an estimated value of $1.49 billion by 2028, up from $489 million in 2020. As more businesses seek solutions for managing ESG, they are turning to specialized software for help. The sustainability software market size is growing thanks in large part to this rising demand for automation and related tools to simplify ESG management.
The ESG software market size points to a bright future for these platforms, but finding the right one for your business can be challenging. There are so many things to consider when choosing between software. An ESG software market map can give you a better idea of the platforms that are currently on the market. Maps like these allow companies to visualize where each platform stands on the wider market and what each brings to the table. For example, some platforms prioritize analytics and insights, while others focus on reporting and disclosure. You can also see the regions where ESG software is having the biggest impact on the market.
Features of the Best ESG Software
When searching for the top ESG software, it's important to note that these platforms are typically divided into two categories: ESG management software and ESG reporting software. Finding the best ESG software for your business, then, depends on your specific ESG needs. For example, if you’re looking for an ESG SaaS platform for data management, you should look specifically at platforms with a focus on management. When it comes to ESG software, companies require different things, and so it’s important to outline your specific needs before settling on a platform.
Here’s a quick breakdown of management and reporting software to help you better understand the differences between ESG platform types.
ESG Management Software
ESG management software is designed to help businesses manage their ESG-related tasks. It serves as a centralized platform in which users can monitor their progress on initiatives, see what needs attention, and drive greater performance overall. ESG data management software is a type of management software that is specifically built to collect and manage data. Companies can use this data to make smarter business decisions.
Considering the ESG management software market size, it can be difficult to select the most appropriate management platform for your organization. Searching for the best sustainability management software can help you to narrow your options and filter through each platform more carefully. You can get a better idea of what’s available and which platforms are best suited for companies in your space.
ESG Reporting Software
ESG reporting software allows users to capture data and compile it into a single source of truth. They can then create detailed reports outlining their strategies and objectives, as well as their progress on critical initiatives. In this way, reporting software is less encompassing than management software, as it focuses solely on data and reporting rather than on broader business objectives like goal-setting and collaboration. The best ESG reporting software includes robust functionality and makes it easy for users to drill down into their data. It helps promote greater accuracy in reporting and standardize the way in which they utilize data.
The ESG reporting software market size is growing at an unprecedented rate. With a wide range of options for ESG reporting software, companies may struggle to find the platform that’s best for their business operations. Gartner offers valuable resources to help companies understand the ESG reporting software market. You can compare software and determine which platforms are most ideal for your particular business or industry.
MetaCX For ESG
MetaCX is a unique network that joins companies to manage the delivery of value. It is imperative that companies maintain alignment with their business partners, and MetaCX’s Business Value Network allows them to do just that. The platform fosters a secure space in which members can collaborate on shared initiates and track value delivery to ensure that agreements are upheld at all levels. This can be extremely helpful for both ESG management and reporting.
Within MetaCX’s network, companies can connect to their ESG partners through bridges, or co-owned digital spaces that allow organizations to align on common objectives. Because ESG success depends so heavily on the cooperation and alignment of the entire supply chain, companies need to be able to hold each other accountable for desired outcomes, and MetaCX makes it possible for them to do so. With MetaCX you can capture multi-directional data for reporting all while facilitating proper management by developing action plans and establishing open communication with your partners.
Gartner ESG Report
The Gartner ESG report can be a useful tool to explore software options. For example, a Gartner market guide for enterprise environmental, social and governance software can be incredibly valuable when trying to decide between ESG platforms. Guides like these outline the pros and cons of different types of software, how much each platform costs, and what kinds of businesses can benefit most from certain types of platforms. They also provide reviews and ratings so that users can gauge how well they have worked for other users and what pain points companies have experienced when implementing or using the software.
A Gartner market guide for enterprise ESG software can be especially helpful for enterprise organizations. Gartner’s Market Guide for Corporate ESG Ratings and Research is one of the most helpful resources for enterprises, as it goes into depth about the current state of the ESG market and includes vendor profiles so that users can learn more about the software providers that are shaping the ESG landscape today. You can access this guide by becoming a Gartner client or purchasing the document individually.
Gartner’s ESG Magic Quadrant can also be helpful when deciding between platforms. The ESG software Magic Quadrant places each software provider in a quadrant based on what they bring to the table. Each Magic Quadrant is divided into challengers, leaders, niche players, and visionaries, and users can easily see where different software platforms fall along this spectrum. This can help them understand what each platform brings to the table.
ESG software Gartner research papers and the ESG Gartner Magic Quadrant are all helpful resources for understanding the ESG market and the most significant players on the landscape today. Gartner makes it easy for companies to weigh their options and get a feel for what kind of software is best for them.
Verdantix Green Quadrant
The research and advisory firm Verdantix also provides helpful resources on ESG software. The Verdantix Green Quadrant is nearly identical to Gartner’s Magic Quadrant in that it divides platforms into four categories (innovators, leaders, challengers, and specialists) based on what they bring to the market. The Green Quadrant: Enterprise Carbon Management Software 2022 is among the latest pieces of research detailing the impact of the top carbon management software vendors on the ESG market today.
The Verdantix blog is another great resource for those that want to learn more about the ESG market. Verdantix events are also held to educate companies and empower them to enact meaningful change within their organizations. For example, they can participate in Verdantix webinars to interact directly with industry leaders to better understand ESG and the impact it’s having on sustainability efforts throughout the business world. Verdantix offers a plethora of resources on sustainability, such as carbon management. Verdantix carbon management resources can help you manage your carbon footprint while continually working towards your business objectives.
Overall, Verdantix ESG software resources can serve as a good starting point for those that are just breaking into the world of ESG.
While there’s no doubt that ESG is an important component of corporate business operations today, businesses should understand what they’re getting into before implementing management and/or reporting software. They should have a thorough understanding of the market and how different providers are transforming the landscape today.