Two cover articles in iX heise magazine by Alexander Schatten
Alexander Schatten, senior researcher at SBA Research, published two cover articles regarding the ESG software market in heise iX.
The ESG reporting obligations are coming
In 2024 and 2025, many SMEs will be subject to new non-financial reporting obligations on the environmental and human rights impacts of their own business activities, in short: mandatory ESG reporting. An overview.
Environment, social and governance are the three pillars of sustainability in the business world. More and more companies have to account for this. Sustainability is also becoming increasingly important as an investment criterion. In addition to environmental aspects, the social dimension is now increasingly becoming the focus of politicians, consumers and stakeholders. The introduction of ESG into investment decisions and policy has resulted in the introduction of numerous data points, key figures and performance indicators that need to be defined, standardized, further developed, measured, monitored and published and that are incorporated into various ESG assessments and analyses. The recording, analysis and reporting of these indicators is only possible efficiently with suitable software. A whole range of ESG regulations as well as reporting and transparency standards must be taken into account. However, sustainability certification systems can also help with data collection and external presentation.*
The ESG software market
Anyone who has to introduce ESG reporting software in their company is not to be envied: They find themselves caught between new, highly complex requirements and a dynamic, heterogeneous market.
Young, dynamic, heterogeneous and growing: The current state of the market for ESG reporting software in no way simplifies the selection of suitable software. The players come from very different segments. There are providers of traditional corporate software, corporate and ESG consultants as well as start-ups and specialized companies. Due to the different origins of the providers, the focus of the software, its range of functions and its ability to be integrated into existing company software vary greatly. Before selecting ESG reporting software, all requirements, interfaces and processes that are essential for ESG reporting must be determined. Of particular importance for working with ESG reporting software is how internal and external data can be integrated.*
*Abstracts by iX-TRACT
Links
The ESG reporting obligations are coming | iX 2/2024, p44 | heise magazine