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MatchZINE – ESG tech magazine

ESRS software – best tools for the CSRD reporting standards

Does your company have to prepare a CSRD report in the future – in accordance with the European reporting standards ESRS? In order to optimize data collection, reporting and processes, you should use suitable ESRS software. We provide an overview and help you choose a provider.

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cross Europe, corporate sustainability reporting is being strengthened, with a focus on integrating environmental, social and governance (ESG) information. This step aims to provide clearer and more understandable information on the environmental, social and corporate aspects of corporate activities.

Since 2023, the European Commission has been working on developing the European Sustainability Reporting Standards (ESRS). But what exactly does this initiative entail? In this article, we take a closer look at the new standards and support you in selecting the right tools for reporting according to ESRS.

Are you already familiar with the topic and want to go straight to the provider comparison? 👉 Click here for ESRS software matching

  • This article was updated on October 6, 2024

Guide ESRS software

What are the European Sustainability Reporting Standards?

Companies should and must become more sustainable across Europe. Sustainability reports are necessary to monitor this and measure measures: Companies have to document in black and white what their measures, their status quo and their ESG strategy for the future look like. But so that not every company creates the report “just any way” and a comparison (e.g. with regard to development or between two companies from the same industry) is possible, standards are needed – of course! Transparent standards.

The European Sustainability Reporting Standards (ESRS for short) are a collection of guidelines and directives developed by the EU Commission with the aim of optimizing sustainability reports of European companies and collecting and presenting all ESG information that must be included in the reports in an orderly and systematic manner.

The Federal Environment Agency provides further information on the standards.

CSRD and ESRS: How are they related?

The ESRS and the Corporate Sustainability Reporting Directive (CSRD) build on each other and, as a duo, specify how you as a company should report in the future. The CSRD is an EU directive that specifies sustainability reporting, so it is in a sense the legal framework for the ESRS.

Matchilla - ESRS software CSRD = Legal framework for companies

Matchilla - Matching platform and marketplace ESRS = Implementation requirements of the CSRD

The directive stipulates that all reporting companies in Europe must carry out their ESG reporting based on the ESRS so that reporting is expanded, improved and, above all, standardized. In this way, ESG information from companies now has the same value as traditional financial reporting.

The CSRD drastically increases the number of companies that are required to report – from around 50,000 companies across Europe.

A reporting obligation already exists (exactly: the preparation of a report for the 2024 financial year next year) for larger medium-sized companies. For the 2025 financial year, other companies that are not yet subject to the directive must report in 2026, if they meet at least two of these three points:

Matchilla - Matching-Plattform und Marktplatz mehr als 50 Millionen Euro Umsatz

Matchilla - Matching-Plattform und Marktplatz mehr als 25 Millionen Euro Bilanzsumme

Matchilla - Matching-Plattform und Marktplatz mindestens 250 Beschäftigte

Captive insurance companies, small credit institutions and capital market-oriented small and medium-sized enterprises (SMEs) must comply with the new standards in their reporting from the 2026 financial year if they meet at least two of these three points:

Matchilla - Matching platform and marketplace more than 700,000 euros in sales

Matchilla - Matching platform and marketplace more than 350,000 euros in total assets

Matchilla - Matching platform and marketplace at least ten employees on average per year

You can find more tips on CSRD and CSRD software here.

GRI & ESRS: How do the reporting standards correspond?

The GRI (Global Reporting Initiative) are, like the ESRS, reporting standards. Many internationally active companies already base their sustainability reports on the “GRI guidelines”. In order to enable reporting and disclosure obligations in accordance with both standards in the future and to simplify the effort involved in both reporting, the EFRAG (European Financial Reporting Advisory Group) and the GRI are working on a digital correspondence table. This means that it is documented at which points the same data that is subject to disclosure and is required for both standards is synchronized.

If you want to report according to both standards in the future, you should make sure that a software provider incorporates this index into the tool’s data management when selecting an ESRS tool.

We have listed GRI as an example here. Other standards that are already in use, such as DNK, SDGs & Co., are currently being synchronized with the new ESRS structures.

The five most important steps for implementing the ESRS

For companies that have to prepare ESRS-compliant reports in the future, the question of “how” naturally arises. Practice shows the following five process phases:

ESRS steps The ESRS (pdf downloads on europa.eu) and the related measures must be understood and be known. The connection between procedures, goals and key figures must be established.

ESRS step double materiality The operational start then takes place with the analysis of double materiality. This involves identifying and prioritizing the key sustainability issues. To determine which topics are important to you, you have these double materiality analysis for all ESRS. On the one hand, external developments (opportunities and risks) on the financial situation and future viability of your company, on the other hand, you have to disclose the effects your business activities have on society and the environment (so-called “impacts”).

Matchilla - Matchilla - Matching platform and marketplace The results of this analysis will be used to check where there are gaps in documentation and evidence in the previous reports (gap analysis with regard to data and information) and where key figures need to be aggregated.

Matchilla - Matching Platform and Marketplace The ESRS data collection is then implemented into your ESRS tool. To achieve this, responsibilities must be defined in the individual ESG areas, a process plan for data collection and management must be created, and a system for efficient data collection and control must be set up.

ESRS steps Once the structures and processes are in place, ESRS-compliant report templates must be created and adapted. It is essential to document the data collection and data analysis process and to ensure that they both meet ESRS requirements and can be reused in future reports .

Is the use of ESRS software mandatory?

There is no legal requirement to use a tool and the five steps described do not look complex at first glance. But that is deceptive. As of May 2024, there are almost 1,200 (!) data points in the ESRS (see also EFRAG’s List of Data points), which must be updated annually with your internal information.

A real story from the product development of an ESRS software provider: Eight sustainability experts spent two months full-time just implementing the data fields in their software so that customers can use the tool in a legally compliant manner in the future. This immense investment of time and know-how is difficult to achieve with your own sustainability team or officer. You should also note that regulatory adjustments can be made at any time, which will be included in future reports as part of an update cycle.

ESRS reporting includes key components such as quantitative and qualitative data, file management but also external data collection from stakeholders or suppliers within the framework of the LkSG/CSDDD. Clean interface solutions and structured ESG management are extremely important efficiency factors for reporting right from the start, so that ultimately there is no way around suitable ESG software.

The use of ESRS software is not required by law for you, but from an operational or procedural point of view it is an unavoidable investment in order to different sustainability topics.

What benefits do you get from using reporting software?

In principle, all of the “implementation steps” described above are much easier and more structured to manage if you invest in the right ESRS software.

ESRS Software individual points Significant saving of resources – through predefined structures and systems (both when familiarizing yourself with the CSRD/ESRS topic, when analyzing double materiality and in the reporting processes themselves) you save yourself immense time and coordination effort.

ESRS Software individual points Professional support with ESRS data management – software providers already have experience from previous projects in how relevant data from external systems can be effectively integrated into reporting. In addition, synchronization with other reporting standards is already implemented in many tools.

Matchilla - Matching platform and marketplace Qualified report templates – many software providers offer various design formats so that the result (i.e. the sustainability report) is not only legally compliant, but also visually presentable and can be used for marketing and sales.

Und natürlich: Unternehmen, die die ESRS professionell umsetzen und reporten, werden einen klaren Wettbewerbsvorteil gegenüber der Konkurrenz erlangen, da sie durch Nachhaltigkeit und Verantwortungsbewusstsein langfristig das Vertrauen ihrer Stakeholder wie Kund:innen, Mitarbeitenden und Investoren gewinnen und stärken.

ROI: How much does ESRS software cost?

Are you planning to use software for CSRD/ESRS reporting and management needs proof of the financial benefit of this investment? You should clearly consider how much time and resources will be spent on manually creating the first sustainability report. How many employees are involved and how long does this process take? In addition, you should estimate how much effort it will take to adapt to possible changes in the law and how much work future reports will require.

It is also important to consider qualitative aspects, such as the content of the templates, the design and the usability for external communication. Your successes in the area of sustainability are a valuable resource for marketing and sales. The content generated from this can have a positive effect on your target group and thus further increase the value of the investment.

Regarding investment costs: The price range for CSRD/ESRS solutions is in the license cost range of around €9,000 to €35,000 per year. These are the values from our over 400 matches for medium-sized companies and corporations. There are also optional, one-off consulting costs, e.g. for the analysis of double materiality and the integration of the results into the tool.

With regard to the budget range mentioned, there has been a continuous increase in license prices in recent months. More and more companies have to use ESRS software. This has created a huge boom in demand, which is causing providers’ existing resources for onboarding & Co. to melt away. Tool providers can basically choose their customers very quickly. The longer you delay the selection, the weaker your negotiating position becomes in the provider discussions.

Tip: You can get an initial price indication for your individual situation via our matching process.

 

Consulting or software: What suits your situation?

There are two options for approaching the first reporting according to ESRS with external service providers: Firstly, you can commission a consulting company to support you in analyzing the situation and selecting a tool that suits your processes. Or you can – and this is our recommendation – hold initial discussions directly with relevant software providers who have their own or external consulting specialists in their partner landscape.

Since the ESRS will play an important role for you in the future, a software comparison for the best possible selection is one of the most important tasks. The more thoroughly you know which features and functions are necessary, the better the software will fit your requirements. Appropriate test or demo versions from the respective software provider will help you with your selection.

ESRS software comparison: Selecting the right provider

As you can see from this summary, we at Matchilla are intensively involved with the topic of CSRD/ESRS reporting. We screen the software provider market for our platform gradually and carefully. Our database contains over 40 CSRD or ESRS reporting software providers active in German-speaking countries – backed up with hard and soft factors such as functions, reporting standards, interfaces, Consulting and industry expertise, pricing, etc.

This market overview and our expertise from over 400 CSRD and ESG matchings.

The best thing: This comparison of providers is non-binding, free of charge and anonymous to the providers.

Would you like to know which ESRS software best suits your needs? Just fill out the Match Assistant! 👇

ESRS software matching

Vendors in database: 51 (last Update: 05th Oct. 2024)

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    Match assistant: CSRD software & tools

    Please note: The more detailed your specifications, the more individual the matching results. If you have any questions, please contact us at [email protected] or +49 (0)221 - 292 5676-0.

    from the reporting year 2024from the reporting year 2025from the reporting year 2026Later or not at allSkip question
    No, we are starting from scratchYes, we are looking for additions to an existing systemSkip question

    CSRD Solution Specifications

    Features and requirements for the software.

    Global Reporting Initiative (GRI)German Sustainability Code (DNK)Sustainable Development Goals (SDGs)UN Global Compact (UNGC)Other standardsSkip question
    YesNoSkip question
    EnglishGermanFrenchSpanishAdditional languages
    CSR Goals Tracking / KPI ManagementCO2 Reduction TrackingCSR Measures ManagementReports in Corporate Design / Interactive ReportsLegally compliant reporting for auditorsData review for plausibility and completenessHotspot AnalysisReal-time calculationsWorkflow / Task ManagementMessaging, Chat, and Comment functionSkip question

    CSRD in your company

    Your current status on sustainability and other important information for selecting providers.

    We are just starting and are developing a strategy.Our strategy is set and we are already operational.CSR has been a focus topic for years, and we want to optimize our processes.Skip question
    No, the CSRD software should support that.Yes, we are ready to import the results in the software.Skip question
    Monitoring suppliers for sustainabilityCreation of CSRD reportsMonitoring CO2 emissionsAssessing the environmental impact of our products (LCA)Building or expanding our sustainability strategySkip question
    That's very interesting for usA good onboarding is enough for usWe handle everything ourselvesSkip question
    Domestically onlyIn EuropeGlobaly

    How many employees does your company have in total?

    For materiality determination: In which industry are you active?

    To which existing systems do you need an API to aggregate data? (e.g., for data import and export)

    What budget range have you planned per year?

    Why are you currently looking for a CSRD software? What goals do you want to achieve with it? What other criteria are important to you?

    Your Contact Details

    Thank you for the information. Based on this, we will start the matching process with the relevant vendors and create an individual matchboard with the appropriate CSRD software solutions.

    Picture of Our ESRS expert
    Our ESRS expert

    Ulli Theves is Head of CSRD and ESG Reporting Matching at Matchilla and an expert in technical solutions in the field of sustainability. In MatchZINE he shares his expertise and regularly publishes current information and interesting facts on the subject of ESG.

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