irst of all, you're not alone. Nearly all medium-sized European companies will need to navigate ESG regulations and sustainability reporting. This guide will help you choose the right CSRD software, ensuring you start with the best tool and implement effective reporting processes.
We also share insights from over 400 successful matchings for companies of various sizes, offering a software comparison tailored to your specific needs.
Are you already familiar with the key aspects of sustainability reporting and looking for recommendations on CSRD software providers that meet your criteria?
In the coming years, reporting obligations and ESG compliance will remain a constant focus for companies. The primary driver behind this is the European Union’s Corporate Sustainability Reporting Directive (CSRD). It is no longer enough to simply have good intentions; companies must be transparent about their sustainability efforts and comply with legal requirements.
There are numerous challenges to achieving a CSRD-compliant sustainability report: a shortage of personnel and time, insufficient data and data sources, and the complexity of the regulatory framework. The hurdles are many. CSRD reporting tools support companies in structuring their activities, collecting and analyzing data and creating well-founded reports. These tools and software solutions are not mandatory for most companies in the overall context of a CSRD software stack (i. e. all technical solutions for the sustainability sector) – they are, in most cases, indispensable. So much in advance: Meticulous creation of Excel sheets will not get you where you want to go with this topic.
The European market for ESG reporting software is currently experiencing strong growth and an increasing diversity of service providers. We estimate that there are currently up to 400 ESG software vendors, and the growing demand for solutions to comply with the Corporate Sustainability Reporting Directive (CSRD) indicates significant market momentum. An increasing number of software providers in Europe are developing specialized tools that are offered either as stand-alone solutions or as part of more comprehensive all-in-one suites. Finding the right provider requires a lot of insight – something Matchilla has gained through over 400 successful matchings.
During the reporting process, you’ll encounter many new challenges that you haven’t faced before. A software solution simplifies the following tasks:
Structured Introduction to Reporting
Many companies are overwhelmed by the new CSRD obligations. Many providers support the process with a software onboarding and/or by providing efficient advice until the first CSRD report. This structured support is one of the most important factors – especially for CSRD beginners!
Increased Efficiency and Cost Savings
Manual CSRD reporting can be time-consuming and prone to errors. Reporting tools automate processes by aggregating data, performing analyses and generating user-friendly reports. Especially in the case of annually recurring processes, you save a huge amount of time and resources that a sustainability manager can put to better use elsewhere.
Consistent Data
By using CSRD software, you minimize the risk of human error in data collection and processing. The automated processes ensure consistency and accuracy of the data, resulting in reliable CSRD reports. In some cases, tools start the process as soon as individual documents are being scanned.
Keeping Up with Reporting Standards
CSRD standards, such as Set 1 of the European Sustainability Reporting Standards (ESRS), will continue to evolve in the coming months and years. Properly selected software solutions will incorporate any necessary updates to ensure your reports remain compliant with the latest regulations.
Transparency and Building External Trust
Sustainability is an important factor for a company’s image. It can be assumed that “green KPIs” will become increasingly relevant for purchasing decisions. Transparent, standardized reports give stakeholders, investors and customers a constant insight into a company’s sustainability efforts. The consistency and uniform structure of the reporting strengthens trust and increases credibility.
Choosing the right CSRD tool provider is crucial for your future sustainability reporting. The first reporting will be a challenge. Both the software and the partner’s team will have a big impact on how efficiently your processes are set up. Here are some key criteria you should consider when choosing a suitable provider:
Pre-filter references/use cases
Providers of CSRD solutions have different focuses in terms of industries, company sizes, report types etc.. Filter out those providers that have already implemented reporting processes or an onboarding with companies similar to yours in order to draw on existing expertise for your challenges.
Data, visualisation and data protection
CSRD tools should be able to capture, manage and analyze large amounts of data/data points. In addition, dashboards to visualize the aggregated data will provide you with an important status quo. Speaking of data: Pay attention to the GDPR!
Integration/interfaces
The integration of the CSRD tool into existing systems such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) or ESG software that you already use (such as LkSG software – Act on Corporate Due Diligence Obligations in Supply Chains) should be an important criterion for the CSRD tech stack. Seamless data transfer and synchronization between different platforms simplifies the workflow and avoids redundant work. This also includes the integration of your various Excel sheets.
Compliance/reporting standards
As CSRD reporting is associated with specific legal requirements, the selected tool should ensure that its provider complies with legal requirements. In particular, check whether the software meets the current and upcoming reporting standards and offers audit trail functions.
Competence/vision
It is this criterion that we would like to emphasize at this point. Until now there is no valid CSRD reporting. The decision for a software and its provider will (have to) largely consist of trust that the service provider you have selected will master future challenges with its software solution and its team. Take this into account in your discussions!
To help you to identify those providers that fit your requirements, we ask about key criteria in our Match-Assistant for CSRD reporting tools at the end of this article.
One of the key innovations of the Corporate Sustainability Reporting Directive (CSRD) is the concept of double materiality, which significantly influences software selection. Double materiality requires companies to identify and prioritize sustainability issues that impact both the company and society (inside-out and outside-in perspectives). In order to determine which topics are relevant for you in terms of double materiality, a materiality analysis must be carried out for all European Sustainability Reporting Standards (ESRS). The results of this analysis form the starting point for an all-encompassing sustainability strategy.
Conducting a materiality analysis is very complex: sustainability issues must be considered across a company’s entire value chain. This is why external support, either in the form of ESG consulting or CSRD software that maps the double materiality individually for your company, is definitely useful and in most cases even necessary. Corresponding modules support you with the following four points:
Identification of material sustainability issues along the entire value chain
Prioritization of the material sustainability issues, taking into account the views of all stakeholders
Obligation to be transparent with regard to the methodology
Regular review and updating of the materiality analysis
If you’re new to sustainability reporting and haven’t conducted a materiality analysis yet, we can help you find the right provider through our Match-Assistant.
The market for CSRD software solutions is characterized by rapid development and the resulting lack of transparency. Even established listing platforms and software comparison providers lag behind a market overview and only show fractions of the relevant providers.
At Matchilla, we have been closely monitoring CSRD tools and providers, conducting direct discussions with vendors for over two years. From our research cycles in our home market, we create a quarterly history of the number of CSRD software providers currently available. Most providers work internationally and offer at least English as an additional language.
The development is impressive: the number of CSRD solutions (almost) tripled in just twelve months from 12 to 34 (2023). Our latest update cycle (from the end of Septembre 2024) even shows an increase to 51 software vendors just in Germany, Austria and Switzerland.
Graphic: Development of CSRD software vendors in the DACH area
In addition to the establishment of further start-ups, the significant increase is due to numerous finance and compliance software providers who have developed their own modules for CSRD reporting. The following current trend in 2024 is also worth mentioning: many software providers are currently working on LkSG or CSDDD, EU taxonomy, EUDR and CBAM modules in order to cover the entire spectrum of requirements in sustainability management as far as possible.
Since April 2024 we are also screening the whole European market with the most relevant vendors. A huge task for the Matchilla team: We already found and checked 96 CSRD tools over all European countries in the last months for our matchings.
How can we expect the CSRD software market to develop in the future?
We expect further software solutions to position themselves on the European market. The current leading CSRD tool providers (although there is no real market leader) will secure the largest market shares: The lead in terms of expertise and development in line with the still changing reporting standards is hard to catch up with. After all, those who have prepared their product for CSRD over the last two years and experienced the many ups and downs will also be better able to cope with future innovations.
The costs depend very much on the size of the company (employees and number of locations) and the areas of application (e. g. special features in the real estate or financial sector). The costs for a basic package from recommended providers start almost from as little as EUR 490 per month, but this could only be used in a self service.
Example: Costs for a midsized company with a CSRD reporting obligation
The evaluation from our previous matchings for over 400 companies (medium-sized companies in all branches), in which we excluded strong downward and upward swings, shows a range of an investment from EUR 9.500 to EUR 82.500 in the first year. In most cases bigger budget includes an initial consultation and personal support from the vendors for onboarding. Pure software license costs are calculated at between EUR 7.000 and EUR 25.000 per year.
From our latest 40 matchings (as of August 2024), the average cost for a CSRD software package was EUR 24,061, but actual costs depend on individual factors.
Our Advice: For a non-binding budget estimation, simply fill out our CSRD provider comparison!
To answer this question, let’s start with a quick fact: The Corporate Sustainability Reporting Directive commits companies to prepare reports that include around 1,200 data points (!) in accordance with the twelve European Sustainability Reporting Standards (Set 1 of the ESRS, ESRS software). For this reason, you should immediately put the “options” arround Excel sheets aside.
The use of CSRD tools and software solutions are the keys to meet reporting and compliance requirements efficiently. It doesn’t matter whether you see CSRD as an obligation or whether you want to take advantage of the opportunity to position yourself better than your competitors through sustainable measures. However, one thing is certain: Sustainability will be of great importance for all companies in the future.
At Matchilla, we’ve invested significant effort in researching CSRD reporting tools, carefully evaluating hard and soft factors such as functionality, reporting standards, interfaces, consulting expertise, and pricing.
You can benefit from our expertise, gained through over 400 successful matchings. We are happy to help you from the CSRD software criteria catalog to the final provider selection and save you a lengthy market research. Our matching service simplifies your provider search by offering a shortlist of the three best-suited solutions, saving you the time and effort of extensive research. You only have to invest a few minutes. If your challenges are more complex, we will provide you with an extensive catalog of criteria so that you can make an even more detailed selection.
This comparison service is non-binding, free of charge, and anonymous.
Would you like to find the best CSRD solution for your company? Simply fill out the Match-Assistant below. 
In this article, we have explained in detail how dynamically the CSRD software market is developing. The resulting lack of transparency makes the research of the options and of the selection process complex and complicated.
We have already successfully completed the structured matching process for more than 400 companies. We have the best maintained database of CSRD software solutions through many discussions with companies and relevant providers all over Europe. With this market overview and our personal expertise, you will gain an immense knowledge advantage that will save you weeks of research work and lead you to the right provider in a structured process.
Matchilla’s service is free of charge, non-binding and anonymous to the providers. The individual determination and the supply of extensive background information in order to select the best CSRD software for you is financed by the providers’ platform fees. In general, we do not have a paid contractual relationship with you and you can terminate the matching at any time.
In the next step, you can use Matchilla for a CSRD software tender and directly request presentations and price offers from those providers that meet your compliance regulations. Using the invite function, you can share the offers not only with procurement, but also with all decision-makers in your company.
Our selection process is based on an efficient interplay of data, algorithms and a good dose of personal expertise. No matchboard is released without the input of one of our CSRD experts. We even surprise people that have already spoken to several vendors with even more suitable options that have not yet been researched. And hey, we are located in Germany – the home of compliance 😉
Think of Matchilla as a neutral sparring partner in this software selection process. We would like your company to use the services of the Matchilla platform for many other searches for service providers in the future. That is why we are keen to ensure that you won’t only have access to an excellent procurement process, but that you ALWAYS find the best possible providers through us.
Try it out without obligation: We look forward to the matching with you.
Ulli Theves is Head of CSRD and ESG Matchings at Matchilla and an expert in technical solutions in the field of sustainability. He shares his expertise in our MatchZINE and publishes news and interesting facts about ESG.