CSRD reporting: PwC study reveals the most popular software
CSRD software study by PwC reveals the most popular tools for CSRD reporting. And a guide to CSR tool selection.
- A 2023 PwC study surveyed 170 companies across Germany, Austria, Switzerland and the Netherlands on CSRD software adoption.
- Excel leads at 27%, followed by dedicated ESG software and ERP systems at 19% each.
- 53% of companies still need to study the differences between software options before deciding.
- Excel is familiar and cost-free but lacks audit-ready documentation and user role management.
- A structured five-step selection process helps you find the right tool for your reporting setup.
A CSRD software study published by PwC in October 2023 sheds light on whether the Corporate Sustainability Reporting Directive (CSRD) is already having an impact on companies. The consultancy also analyzes whether and to what extent dedicated software solutions for CSRD reporting are being used and provides revealing insights.
Key findings of the PwC CSRD study
- Over 70% of companies surveyed have drawn up a sustainability strategy and largely integrated it into their overall strategy. That is almost a threefold increase compared to 2021.
- 15% have not yet started implementing CSRD, while 61% are already collecting data for relevant KPIs.
- In 42% of companies, a sustainability department is primarily responsible for the technical, strategic and operational implementation of CSRD. Accounting (30%) is the next most common alternative.
- Every other company plans to use a reporting software solution. The most popular tool was Excel (27%).
The study covers how strategically companies approach CSRD, which implementation measures (such as a materiality analysis based on double materiality) have already been taken, which challenges lie ahead, and which departments are responsible.
This article focuses on the study's findings about software solutions for CSRD reporting.
Most popular CSRD software
The CSRD requirements for companies are set out in the European Sustainability Reporting Standards (ESRS). The ESRS cover 281 pages.
A market of CSR tools and software has grown to help companies meet those requirements and record their sustainability efforts in a structured way.
According to PwC, there is a great deal of uncertainty among companies about whether and which tool to use. While slightly more than half have decided to use software, 20% say they do not plan to use any software at all. The remaining 28% have not yet decided or did not specify.
The breakdown of preferred tools:
- Excel is the most frequently mentioned option at 27%.
- 19% of companies rely on dedicated sustainability solutions.
- A further 19% use ERP systems.
- Other tools, including disclosure management (7%), consolidation software (5%) and other solutions (4%), are used to a lesser extent.
Source: PwC study Corporate Sustainability Reporting Directive (CSRD) 2023
Excel is the preferred CSRD reporting tool
The high share of companies (27%) choosing Microsoft Excel for CSRD reporting stands out. Excel is widely used and offers real advantages:
- Cost: Usually included in existing Microsoft Office licenses, so no additional software spend.
- Familiarity: Most employees already know Excel, so no steep learning curve.
- Flexibility: Data can be organised, filtered and analysed in many ways; custom tables and formulas cover specific reporting needs.
- Compatibility: Integrates easily with Word, PowerPoint and ERP systems.
- Templates available: Many ready-made Excel templates exist and can be adapted to your requirements.
However, PwC notes that Excel is not necessarily the best solution. It does not provide secure documentation and lacks user role management. Because sustainability reporting requires an audit, PwC recommends companies consider alternatives.
This Excel template for the double materiality analysis guides you through the full process, including stakeholder analysis.
Dedicated software solutions for CSRD reporting
One in five companies plans to use a dedicated tool for managing and reporting on sustainability activities. Numerous platforms are entering the market.
Depending on your needs, dedicated ESG tools can offer significant benefits:
- Specialist functions: Built specifically for sustainability reports, with features that simplify the reporting process.
- Consistency: Ready-made templates and guidelines keep reports consistent across periods.
- Automated data integration: Many platforms can import data automatically from multiple sources.
- Compliance: Solutions are designed to align with current standards and updated regularly.
- Access management: Supports differentiated editing and view rights for different users.
Dedicated software also has potential drawbacks. Additional costs are involved, staff need training, not all tools integrate with existing systems, and you may become dependent on a single provider.
Categories of CSRD reporting tools
CSR software solutions fall into several categories:
- Sustainability management platforms: Comprehensive solutions for managing sustainability initiatives, including data collection, monitoring and goal tracking.
- GHG emissions calculators: Designed specifically to calculate and analyse greenhouse gas emissions and develop reduction strategies.
- CSR rating providers: Platforms that rate companies on social, environmental and economic performance for investors and customers.
- CSRD reporting software: Helps companies create, manage and publish CSRD reports, often with built-in templates aligned to reporting standards.
- CSRD training platforms: Provide training and educational resources on CSRD requirements and best practices.
Carefully assess your specific needs before settling on any solution. In another CSRD study by Ubirch, companies were also asked which ESG software they actually use.
Using existing ERP systems for the sustainability report
The PwC study found that 41% of companies want to use the same tools for financial and CSRD reporting, either exclusively (11%) or partially (30%). ERP systems are the most frequently mentioned option.
Advantages of using an ERP system:
- Data integration: ERP systems aggregate data from across the business, so CSRD-relevant data is often already available.
- Cost efficiency: No need to invest in separate software; many ERP providers offer ESG add-on modules.
- Customisability: Most ERP systems can be extended to meet specific CSRD reporting requirements.
ERP systems also come with drawbacks. They can be complex and hard to use. Adding CSRD reporting capabilities can further complicate things. Updates to CSRD requirements may require costly ERP adjustments. And employees unfamiliar with the ERP system need additional training.
Advantages and disadvantages of the main software options at a glance
| Option | Advantages | Disadvantages |
|---|---|---|
| Excel | Easy to use; widely available; no additional cost | Scaling problems with large data; prone to manual input errors; lacks specialised functions |
| Dedicated ESG software | Purpose-built for ESG reporting; integrated analytics and user management; regularly updated | Can be expensive; requires staff training; possible integration difficulties |
| ERP systems | Centralised data sources; cost-efficient; adaptable | Complex to operate; potential gaps in CSRD-specific functions; may require additional training |
Differences between CSRD software solutions still little known
The PwC study, covering 170 companies from Germany, Austria, Switzerland and the Netherlands, confirms that keeping an overview of CSRD software options is a real challenge.
An astonishing 53% of companies surveyed still need to deal intensively with the differences between solutions before deciding.
While 14% already feel well informed, a third (31%) do not have the topic on their radar at all. Two percent did not provide any information.
Source: PwC study Corporate Sustainability Reporting Directive (CSRD) 2023
The main priority for companies should be understanding what the various solutions offer, particularly their user-friendliness and level of detail.
How to find out more about CSRD software
PwC's study reveals that three out of four companies have already looked into software solutions for CSRD reporting. That leaves 26% who have not. PwC experts recommend that companies "urgently take action" to achieve efficiency and quality improvements in their sustainability reporting.
To give you a quick overview of the ESG tool landscape, CSR-Tools.com has compiled numerous software solutions with their functionalities and category classification.
In addition to blog posts and overviews, companies also use events and webinars (46%) to learn about software solutions. Exchanges with consultants and auditors (41%) are popular too. Surprisingly, only 6% discuss tool selection with peers. Eight percent conduct their own research or approach providers directly.
Get a comprehensive overview of the available software solutions to professionalise your CSRD reporting.
5 steps to CSRD reporting tool selection
When selecting CSRD reporting software, a structured approach helps you find the right fit. Here are the most important steps:
- Stakeholder analysis: Identify who needs to be involved in the selection so that all requirements are captured.
- Needs analysis: Define your specific requirements and objectives. What do you want the tool to do? What budget is available?
- Research: Review tools on the market. Read reviews, request customer references and compare features.
- Demo and test phase: Most providers offer demo versions or trial periods. Use them to check user-friendliness and fit.
- Make a decision: Evaluate solutions against your defined criteria and choose the most suitable tool.
Following these steps helps ensure you select a CSRD software solution that genuinely meets your needs.
Need to track which ESRS data points apply to your company? Our template gives you a structured overview to work from.
Frequently asked questions about CSRD reporting software
What does the PwC study say about the most popular CSRD software?
According to the 2023 PwC study, Excel is the most frequently mentioned tool at 27%, followed by dedicated ESG software and ERP systems at 19% each. The study covered 170 companies from Germany, Austria, Switzerland and the Netherlands.
Is Excel good enough for CSRD reporting?
Excel works well for smaller companies or early-stage reporting. It is familiar, flexible and costs nothing extra. However, PwC points out that it lacks audit-ready documentation and user role management, which makes dedicated software worth considering once reporting volumes increase.
What are the main categories of CSRD software?
The main categories are sustainability management platforms, GHG emissions calculators, CSR rating providers, CSRD reporting software, and CSRD training platforms. Each serves a different purpose, so your choice depends on whether you need full reporting support, emissions tracking, or a combination.
How do I choose the right CSRD reporting tool?
Start with a stakeholder and needs analysis to clarify requirements and budget. Then research available options, request demos, and run a test phase before making your final decision. A structured process saves time and avoids costly tool switches later.
