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If your business falls under scope of the Corporate Sustainability Reporting Directive (CSRD), understanding the European Sustainability Reporting Standards (ESRS) is a must. These are the mandatory guidelines your company must follow to comply with the new directive.
While the framework does wonders for standardizing sustainability reporting and improving transparency across Europe, it’s also extremely complex. With 10 topics, 37 subtopics, and 72 sub-sub-topics—adding up to over 1,100 potential data points to report—getting your head around the ESRS is a significant time investment.
Compliance isn't just time-consuming, it can be expensive too. Audit costs alone are estimated to range between 0.013% and 0.026% of revenue—roughly €13,000 to €26,000 annually for every €10 million in revenue. That, paired with penalties for non-compliance reaching up to €10 million in Germany, getting it right is crucial.
Despite the high stakes, 55% of finance executives still admit to relying on outdated methods like spreadsheets to manage environmental, social, and governance (ESG) data. But with data quality reportedly the biggest barrier to ESG investing, it's clear that legacy technology is failing to keep up with today’s stringent reporting requirements.
That’s why many forward-thinking businesses are turning to specialized ESRS software tools to take some of the burden off their shoulders. These platforms automate complex tasks, ensure compliance, and help to keep costs in check.
In this article, we’ll explore the top five ESRS software tools currently available to help you determine the best fit for your business. You’ll get to know the ins and outs of:
The ESRS are the detailed guidelines companies in Europe must follow to comply with the CSRD. Developed by EFRAG, these standards help businesses report on ESG impacts in a standardized way, improving transparency and comparability.
Covering a broad array of sustainability topics, the ESRS enables companies to provide comprehensive disclosures that are crucial for investors, customers, and regulators to make informed decisions.
Below is an overview of the ESRS’s ten topical standards covering ESG topics, as well as two cross-cutting standards covering general requirements and disclosures, applicable to all CSRD-affected companies.
Now that we’ve got some background, let’s compare the top five ESRS software tools available right now to help you choose the one that’s right for your business.
As the publishers of this comparison, we want to be transparent about including Coolset on this list. We believe our platform is a great option for mid-market companies looking for an all-in-one sustainability management and compliance solution.
Whether your focus is on carbon management or achieving ESRS and CSRD compliance, Coolset provides tools and support throughout your entire sustainability journey.
Website: www.coolset.com
Ideal for: Mid-sized businesses
Key features:
Sweep is an ESG data management platform that helps large companies track, disclose, and act on their carbon emissions. Designed to streamline compliance with standards like the ESRS and CSRD, Sweep consolidates data from across the organization, reducing reporting time with automated controls and real-time progress tracking.
Website: www.sweep.net
Best for: Companies of all sizes
Key features:
Position Green is an ESG management platform that supports global enterprises in tracking, reporting, and improving their sustainability performance. With built-in best practices and a focus on reducing manual tasks, it helps companies transform their ESG data into a competitive advantage.
Website: www.positiongreen.com
Ideal for: Large enterprises across various sectors
Key features:
Emitwise is a carbon management platform that helps businesses to measure, track, report, and reduce their environmental footprint, with a focus on Scope 3 emissions. From automating data processing to supporting smarter procurement decisions, Emitwise takes on the heavy lifting, allowing companies to focus on carbon reduction effectively.
Website: www.emitwise.com
Ideal for: Companies with complex supply chains or significant Scope 3 emissions
Key features:
SmartTrackers is a versatile sustainability platform that enables businesses to measure their environmental impact, safety practices, and CO2 emissions. It provides clear insights to support accountability and compliance with industry standards and regulations. With a focus on customizability and flexible data entry, SmartTrackers adapts to various reporting needs.
Website: www.smarttrackers.nl
Ideal for: Organizations of all sizes across various sectors
Key features:
Now that we’ve got an overview of the top tools on the market, let’s take a look at the key factors to keep in mind when selecting ESRS software:
While it might sound obvious, it’s important that your software supports ESRS and CSRD compliance. Look for features like double materiality assessment support, adaptive ESRS disclosures, and audit-ready reporting in .XBRL format.
Choose software that automates Scope 1, 2, and 3 data collection and validation. Make sure it integrates with your existing systems to reduce manual work and minimize errors.
Look for adherence to standards like the Greenhouse Gas Protocol (GHGP) to ensure data reliability. You should also check if the software itself is certified. For example, Coolset’s carbon management methodology is TÜV Rheinland certified for Scope 1-3 measurements under the GHGP which can boost the credibility of your data.
Opt for ESRS software with built-in audit trails. Being able to track data changes and user actions can simplify the verification process and reduce audit costs.
Look for software that automates the most time consuming tasks like data collection and report generation.
Choose scalable software that adapts to your business growth and evolving regulations, with customizable reporting options.
Look for tools that provide real-time data on key sustainability metrics, allowing continuous progress monitoring and informed decision-making.
Ensure the software integrates with your current systems (like energy management, supply chain, and finance) to unify data flow and enhance accuracy.
Pick a solution that fits your budget, offering scalable features that can expand as your needs grow.
Choose platforms with solid support—blog posts, webinars, and a knowledgeable team—so you stay ahead of new requirements.
When it comes to complying with the EU’s new sustainability reporting standards, using the right ESRS software is crucial. We hope this guide has given you the insights you need to choose the best tool for your business.
Coolset’s ESRS software offers all of the essential features discussed above—from automating data collection to producing audit-ready reports—making ESRS compliance simpler and faster while minimizing the chance of errors.
Want to see how it works? Check out our interactive demo below or request a personalized walkthrough to see how Coolset can help you stay ahead of ESRS requirements and keep your sustainability efforts on track.
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