10 questions to ask before choosing an ESG data management solution

This handy checklist aims to serve as a short guide to helping you assess each of the solutions you’re currently considering for purchase to make sure they can hold up to your needs. Make sure you take it with you the next time you’re evaluating a potential sustainability software, so you know for sure it can fulfill all your needs.

1. Does it simplify compliance with major frameworks and regulations?

Regulations like CSRD, ESRS, TCFD, and SFDR require specific, detailed reporting. The right ESG software should:

• Ensure reports are audit-ready, reducing risk and building stakeholder confidence.
• Automate compliance workflows to reduce manual effort.
• Provide ready-to-use templates and tools tailored to meet each of the regulatory requirements.

2. Can it centralize all ESG data?

Fragmented data leads to inefficiencies and inaccuracies, often requiring you to do additional, unnecessary work to complete your due diligence. A robust ESG solution should:

• Integrate seamlessly with existing systems (e.g., ERP, CRM, and data warehouses).
• Consolidate data from multiple departments, suppliers, and regions into a single platform.
• Offer real-time dashboards that present actionable insights across all ESG metrics.

3. Does it support carbon accounting across Scopes 1, 2, and 3?

Carbon emissions tracking is complex, especially across the supply chain as this requires you to incorporate data from outside of your organization. Ensure the solution:

• Covers Scopes 1, 2, and 3 emissions, providing full visibility of direct, indirect, and value-chain impacts.
• Includes a vetted library of emission factors and supports various calculation methods.
• Identifies hotspots, allowing you to focus on areas with the greatest impact potential.

4. Does the solution allow you to integrate with other tools in your reporting infrastructure?

With your own data from other reporting sources coming in multiple different formats, you need to make sure you know:

• If your solution allows for multiple data sources to be included and adapted to the platform.
• Whether the interface is intuitive and accessible for all stakeholders, including non-technical users.
• The availability of tutorials, in-platform guidance, or customer support for onboarding.

4. Does the system allow you to integrate with other tools in your reporting infrastructure?

With your own data from other reporting sources coming in multiple different formats, you need to make sure you know:

• If your solution allows for multiple data sources to be included and adapted to the platform.
• Whether the interface is intuitive and accessible for all stakeholders, including non-technical users.
• The availability of tutorials, in-platform guidance, or customer support for onboarding.

5. Does it provide materiality assessment tools?

Understanding what matters most to your organization and stakeholders is critical. Look for:

• Tools that help identify and rank ESG issues based on their materiality to your operations.
• Features like benchmarking and scenario planning to visualize long-term impacts.
• Alignment with standards like GRI or SASB for consistency in assessment.

6. Is it scalable to meet future needs?

Your ESG strategy will evolve as regulations change and your organization grows. A future-proof solution should:

• Support evolving goals, whether you’re just starting or refining a mature ESG strategy.
• Be flexible enough to incorporate new reporting frameworks or requirements.
• Scale easily with your organization’s size, complexity, or industry-specific needs.

7. How does it engage with your supply chain?

Your supply chain significantly impacts your ESG footprint. Similar to point 3, you need to be able to not just incorporate data from your suppliers but make it easy for them to contribute as well. A strong solution should:

• Offer tools for assessing and scoring suppliers.
• Enable traceability to track sustainability metrics at each step in the supply chain.
• Automate supplier assessments to streamline collaboration and ensure alignment with your goals.

8. Can it align ESG initiatives with business strategy?

Sustainability should be embedded in your organization’s overall strategy as a precursor to value creation across your organization. The right software can:

• Turn high-level strategic goals into actionable KPIs, targets, and project plans.
• Visualize progress with dynamic dashboards and real-time tracking.
• Link ESG initiatives with financial outcomes, demonstrating the tangible value of sustainability efforts.

9. Does it offer actionable insights?

Data is only as valuable as the insights they generate. This often comes in the form of qualitative data distilled from the vast array of data sources that supply your reporting software. Ensure the software provides:

• Benchmarks and simulations to evaluate risk, performance, and opportunities.
• Forecasting capabilities that support proactive decision-making.
• Customizable reporting options tailored for various audiences, from boards to investors.

10. Is there expert support and built-in guidance?

Successful ESG implementation often requires expertise from professionals who understand the frameworks and standards inside and out. Check for:

• Built-in guidance to help navigate frameworks and implement best practices.
• Access to a support team or advisory services to maximize your software’s potential.
• Resources like training programs, webinars, or ongoing customer success initiatives.

Access a solution that covers all your sustainability needs…

Position Green’s Sustainability Suite checks all these boxes, offering:

• Centralized ESG data management.
• Audit-ready compliance tools.
• Comprehensive carbon accounting.
• Expert-backed guidance and scalability.

Book a free demo today to see how Position Green can support your sustainability goals.