CSRD software selection: Guide for companies
CSRD software selection made easy with the guide for companies. Get to know the ESG market and use the tool selection guide.
- The CSRD requires companies to publish an annual sustainability report covering over 1,100 ESRS data points. This is hard to manage without dedicated software.
- The ESG software market is highly fragmented. Knowing the types of providers and software categories helps you narrow the field quickly.
- A structured 5-step selection process saves time and avoids costly mistakes.
- CSR Tools offers a ready-to-use evaluation model to compare software providers systematically.
- The new Omnibus thresholds (in force since March 2026) have reduced the number of companies directly obligated, but software still pays off for those preparing ahead.
The Corporate Sustainability Reporting Directive (CSRD) requires affected companies to publish an annual sustainability report as part of their management report. The specific requirements are set out in the European Sustainability Reporting Standards (ESRS).
Following the Omnibus package, the CSRD now applies only to companies with more than 1,000 employees AND more than €450 million in net turnover. Both criteria must be met. This replaced the previous "2 of 3" test. Companies currently planning their reporting should check whether they still fall in scope.
Why CSRD software can help
The 12 ESRS standards cover over 1,100 data points. Even after reading through the full documentation, many practical questions remain open. Those responsible for CSRD implementation often struggle to aggregate all required information and collect the underlying data. Conducting a double materiality analysis, including stakeholder engagement, can be very resource-intensive. On top of that, the sustainability report must be machine-readable and audited by an external auditor.
CSRD software can support companies in handling this workload:
- ESRS compliance: software maps the relevant subject areas and guides teams through the creation process step by step
- Efficiency gains: automated data collection replaces error-prone manual processes
- Stakeholder engagement: user permissions allow stakeholders to be involved directly and tasks delegated efficiently
- Audit readiness: most tools support documentation requirements for auditors and digital reporting with XBRL tags
A CSRD study by PwC confirms that every second company plans to use reporting software to fulfil CSRD reporting obligations.
Selection guidelines for CSRD software
The selection of CSRD software providers is usually more difficult than expected. There is no "standard software" in this space comparable to SAP among ERP providers. The ESG software market is dynamic and fragmented, as a CSRD study by Ubirch confirms.
When evaluating ESG software providers, start with two key aspects:
- The type of software provider
- The software category
Both are explained in detail below.
Types of CSRD software providers
The Sustainability Software Radar from Swisscom and Atlantic Ventures lists over 240 providers of sustainability software. Other sources cite figures above 700 tools. The total number is less important than understanding what kind of provider you are dealing with and which types suit your company.
The Sustainability Software Radar distinguishes between these provider types:
- Start-ups: young companies focused on innovation, often exploiting market gaps or creating new categories
- Independent Software Vendors (ISV) / SaaS: providers marketing independently developed software, often cloud-based
- Global tech groups: large established companies such as IBM, SAP and Salesforce that have entered the ESG market
- Professional service providers: consulting-focused firms, including the Big 4 advisory and auditing practices
- Open Source: organizations developing software with freely accessible source code
The Swisscom and Atlantic Ventures research shows that start-ups are the innovation engine of this industry. Thanks to the EU regulatory environment, European start-ups are leading the rapid development of new software tools. Overall, a clear trend away from isolated point solutions towards platforms for holistic sustainability management is emerging.
Software categories for ESG tools
Beyond provider types, the ESG software market can also be divided into functional categories:
| Category | What it does | Examples |
|---|---|---|
| Reporting software | Supports creation, management and publication of ESG and CSRD reports | Greenomy; Atlas Metrics; Luup |
| ESG management | Enables continuous monitoring and management of ESG data and initiatives | Workiva; CONSUST FramesCube; Daato |
| CO2 / GHG management | Supports measuring, setting and monitoring CO2 targets and energy efficiency | Global Climate; Code Gaia; Carbmee |
| Supply chain management | Addresses ESG challenges within upstream and downstream supply chains | osapiens; IBM Envizi ESG Suite; IntegrityNext |
| ESG ratings | Rates and ranks ESG practices to allow comparability between companies | EcoVadis; GRESB; Sustainalytics |
| Training platforms | Provides knowledge and skills in sustainability, ESG and CSRD | XU sustainable; Greenomy Academy |
Note that categories overlap and individual tools can belong to more than one.
The CSRD software selection process
CSR Tools has developed a 5-step process for CSRD tool selection:
- Needs analysis and objectives: Define objectives and create an evaluation model or specification sheet. Specify and weight the requirements for a software solution.
- Research and comparison: Conduct desk research using databases such as the ESG tool overview to build a longlist. Narrow down relevant providers and schedule demo appointments.
- Vendor evaluation: Assess providers based on available information and ask clarifying questions where needed.
- Negotiation and test phase: Run final contract negotiations with the 2-3 preferred providers. Request test access so relevant stakeholders can evaluate the tool hands-on. Select the preferred software and sign the contract.
- Implementation: Assign clear responsibilities and a tool owner. Involve and train relevant stakeholders, manage change where necessary, and integrate data and systems into the existing software landscape. Check whether the original objectives have been met.
Evaluation model for CSRD software selection
CSR Tools has developed an evaluation model that supports companies in selecting CSRD software. The model includes a step-by-step guide, predefined criteria that can be adapted as required, and a scoring logic with criteria weighting.
- Time savings: structured, ready-to-use assessment tool reduces preparation effort
- Adaptability: criteria and weights can be tailored to your own priorities
- Informed decisions: systematic process reduces the risk of choosing the wrong tool
Use the CSR Tools evaluation model to compare ESG software providers systematically. Step-by-step guidance, predefined criteria, and built-in scoring logic included.
Conclusion
Introducing software for CSRD compliance involves an upfront effort, but delivers significant efficiency gains in subsequent years. A structured software solution is also more robust than a collection of Excel files.
The range of ESG software providers and categories is large. With a clear objective and a structured selection process, you can find the right tool for your company's specific needs.
Frequently asked questions about CSRD software selection
Do I still need CSRD software after the Omnibus changes?
The Omnibus package (in force since 18 March 2026) raised the thresholds considerably. Only companies with more than 1,000 employees AND more than €450 million in net turnover are now directly obligated. If you fall in scope, dedicated software remains highly recommended given the volume of ESRS data points. If you are currently out of scope, software can still help you prepare and respond to value-chain reporting requests from obligated customers.
What is the difference between ESG reporting software and ESG management software?
Reporting software focuses on creating, managing and publishing CSRD or ESG reports. ESG management software focuses on the continuous collection, monitoring and governance of ESG data across the organisation. Many tools combine both functions, so it is worth checking which capability matters most to you before building your longlist.
How long does CSRD software implementation typically take?
Implementation timelines vary by provider and company size. Simple SaaS tools can be up and running within a few weeks. More complex platforms that require deep system integration and organisation-wide change management can take several months. Requesting a realistic implementation roadmap from each provider is a useful step during the evaluation phase.
What should be included in a CSRD software requirements specification?
A solid requirements specification covers: scope of ESRS standards to be supported, number of users and stakeholder groups, integration needs with existing ERP or data systems, audit and XBRL export requirements, language and localisation needs, support and training expectations, and budget range. The CSR Tools evaluation model provides a ready-to-use structure for exactly this.
