5 ESG Reporting Tools Built for Real-World Compliance

While ESG reporting tools bring structure to sustainability data, not all of them are built for long-term success. Some tools fall short when it comes to scalability, emissions coverage, or aligning with evolving global frameworks. With dozens of tools in the market—each offering different features, integrations, and pricing models—figuring out which one actually fits your business can be overwhelming.

What works for a large enterprise might be overkill for a mid-sized team. And what looks good on a feature list might not hold up in real reporting cycles.

With this in mind, we’ve filtered through the noise and shortlisted 10 best ESG reporting tools based on performance and scalability to help you make an informed decision.

Factors to Consider When Choosing ESG Reporting Tools

Choosing the right ESG reporting tool goes beyond checking a few feature boxes. Here are the most critical factors to evaluate before making a decision:

1. Compatibility with Global ESG Frameworks

The ideal ESG reporting tools must align with recognized global standards such as GRI, SASB, TCFD, BRSR, and CSRD. Without built-in framework support, your team will face hours of manual mapping, formatting, and cross-referencing. 

The tool should help you structure disclosures in the required formats while keeping pace with evolving regional regulations. This becomes especially important if your business operates in multiple geographies.

2. Emissions Coverage – Scope 1, 2, and 3

Sustainability and ESG reporting tools must support reporting across Scope 1, 2, and 3 emissions under the GHG Protocol. Many tools handle Scope 1 and 2 well, but fall short on Scope 3, which is often the largest and most complex to calculate. 

Accurate Scope 3 tracking is essential for organizations working toward net-zero targets or CSRD readiness. The platform should support category-level granularity, customizable emission factors, and full visibility across your value chain. Without this depth, your reports may be incomplete or misleading.

3. Data Ingestion and Integration Capabilities

Your ESG data likely lives across multiple platforms—ERPs, HRMS, utility dashboards, and spreadsheets. Manually consolidating this information leads to delays and errors. Carbon footprint reporting tools for ESG must integrate easily with your existing systems and automate data collection wherever possible. It should handle structured and unstructured data, allow bulk uploads, and support scheduled updates.

4. Automation and AI Capabilities

Modern ESG teams need more than data entry portals—they need automation to reduce effort and error. AI-powered ESG reporting tools can handle everything from auto-validating data and flagging anomalies to generating narrative summaries for disclosures. 

Automation also speeds up reporting cycles, enabling your team to focus on analysis rather than routine processing. A tool that intelligently recommends emission factors or pre-fills frameworks saves valuable time.

5. Decarbonisation Strategy Support

Beyond compliance, businesses are under pressure to actively reduce emissions and show progress. ESG reporting and data management tools should support strategy execution, not just data display. This means providing capabilities for emission hotspot analysis, net zero target setting, and tracking reductions over time.

Platforms that connect reporting data with actionable levers—like energy efficiency projects or supplier benchmarks—enable better decision-making.

6. Security, Privacy, and Data Governance

ESG reporting tools handle sensitive business data that must be protected from breaches, misuse, or compliance violations. Strong data security isn’t a bonus—it’s a requirement. Look for tools with enterprise-grade encryption, access controls, and recovery protocols. Regular backups, real-time monitoring, and multi-user governance are also important.

7. Scalability and Future-Readiness

Your ESG strategy today won’t look the same a year from now. As regulations shift, your business expands, or internal goals evolve, your reporting ESG reporting tool must keep pace. A scalable platform supports multiple business units, geographies, and reporting requirements without needing custom builds each time. It should be modular and allow you to add capabilities as your needs grow.

8. Usability and Team Adoption

No matter how advanced the features, ESG reporting tools will fail if it’s too complicated for teams to use. An ESG reporting platform should be intuitive, easy to navigate, and designed for real users—not just technical specialists. Features like role-based dashboards, guided workflows, and in-app help reduce onboarding time. It should empower cross-functional teams to collaborate without constant training or support.

9. Expert Support and Advisory Services

Software alone won’t solve ESG challenges—human guidance matters too. The best ESG reporting tools come with access to sustainability experts who can help you navigate frameworks, validate calculations, and refine your strategy. 

This is especially critical when tackling new regulations, performing materiality assessments, or preparing for audits. Look for platforms that offer onboarding, regular training, and ongoing access to advisory services. 

Top 5 Tools For ESG Reporting in 2025 

1. Breathe ESG

Breathe ESG is one of the best ESG reporting tools built specifically for businesses navigating complex disclosure mandates and emissions accounting. It’s designed to streamline the entire ESG reporting cycle—from collecting fragmented sustainability data to producing audit-ready reports aligned with global standards. 

What sets Breathe apart is its integrated approach: the platform doesn’t stop at compliance. It brings together reporting, carbon management, AI-powered automation, and advisory support into a unified, scalable solution. This makes it ideal for teams looking to reduce manual workload, improve data quality, and confidently manage evolving ESG requirements.

Key Features

• Unified Data Hub: Consolidates ESG metrics from multiple departments and systems, streamlining data ingestion, validation, and standardization into a central, auditable source.
• Multi-Framework Reporting Engine: Automatically maps reported metrics to global ESG standards such as GRI, SASB, BRSR, TCFD, and CSRD, eliminating manual reporting overlaps.
• Scope 1, 2, and 3 Emissions Accounting: Enables granular carbon footprint reporting tools for ESG, including Scope 3 category-level tracking based on configurable methodologies aligned with the GHG Protocol.
• AI-Powered Automation: Uses INARA AI to autofill disclosures, detect anomalies, and power predictive analytics for emissions trends and reporting gaps.
• Net Zero Pathway Integration: Through Breathe Zero, users can set targets, run emission hotspot analysis, and monitor reduction efforts—all tied to real-time ESG data.
• Stakeholder & Materiality Management: Helps assess stakeholder inputs, build materiality matrices, and track ESG maturity via built-in scorecards and analytics.
• Advisory & Regulatory Training: Offers expert-led guidance through Breathe Insight and Breathe Academy, supporting compliance, audit preparation, and internal ESG literacy.

Pros

• Seamless end-to-end ESG reporting workflow from data collection to final disclosure, with full framework coverage.
• Deep integration of reporting, emissions management, advisory, and education in one scalable platform.
• AI-backed automation significantly reduces manual effort, improves reporting accuracy, and accelerates compliance timelines.

Cons

• Some dashboards may require configuration support during onboarding.
• Integration with custom legacy systems may need additional setup time.

2. Greenomy

Greenomy is a renowned Europe-focused sustainability & ESG reporting tool designed to simplify regulatory compliance for businesses and financial institutions operating within the EU. It is best known for its strong alignment with frameworks like the EU Taxonomy, CSRD, and SFDR, offering tools that help companies turn complex requirements into structured reports. 

Greenomy is especially valuable for organizations that need to connect ESG disclosures with financial reporting and regulatory oversight in capital markets.

Key Features

• Automates EU Taxonomy alignment for environmental disclosures.
• Offers CSRD and SFDR-ready templates with pre-filled structures.
• Provides tailored modules for corporates, banks, and asset managers.
• Includes audit and reviewer portals for third-party verification.

Pros

• Excellent coverage of EU sustainability reporting frameworks.
• Strong regulatory reporting structure for financial institutions.
• Reduces manual effort with guided, regulation-specific workflows.

Cons

• Limited global framework support outside of the EU.
• Basic Scope 3 emissions tracking with minimal granularity.
• Less applicable for non-financial or non-European businesses.

3. Plan A

Plan A is a climate-focused ESG reporting tool that combines emissions accounting with sustainability performance management for mid-sized to large enterprises. It places strong emphasis on science-based decarbonisation and offers deep support for Scope 1–3 reporting, especially for companies aiming to meet net-zero targets. 

Plan A is well-suited for sustainability teams that want automated data flows, carbon analytics, and compliance reporting, all within a clean, modern interface.

Key Features

• Tracks Scope 1, 2, and 3 emissions in alignment with the GHG Protocol.
• Supports CSRD, GRI, and TCFD-aligned reporting templates.
• Offers decarbonisation planning tools tied to reduction pathways.
• Includes collaborative dashboards for team-based sustainability reporting.

Pros

• Strong science-based emissions tracking and reduction features.
• Intuitive UI and clean visualizations for internal and external reporting.
• Integrated support for carbon project tracking and benchmarking.

Cons

• Reporting flexibility is limited for non-EU frameworks like BRSR or SASB.
• Can be costly for smaller teams or companies on a budget.
• Fewer built-in training or advisory resources compared to competitors.

4. StepChange

StepChange is designed to help companies embed ESG into business strategy with a strong emphasis on data governance and impact measurement. It offers capabilities tailored to the Indian regulatory environment, including BRSR, while also supporting global frameworks. 

What makes StepChange distinct is its focus on driving continuous ESG improvement through materiality analysis, gap assessments, and strategic tracking, making it ideal for businesses building ESG capacity from the ground up.

Key Features

• Supports BRSR, GRI, and SDG-aligned ESG reporting.
• Includes tools for double materiality and risk mapping.
• Offers workflow management with audit trails and access controls.
• Provides maturity assessments and policy gap diagnostics.

Pros

• Strong focus on Indian ESG regulations and disclosure norms.
• Built-in guidance for companies early in their ESG journey.
• Offers both reporting and diagnostic tools to strengthen ESG programs.

Cons

• Limited automation or AI capabilities compared to global peers.
• Smaller feature set for Scope 3 emissions and carbon analytics.
• Less suited for multinational operations or EU/US-specific frameworks.

5. Watershed

Watershed is known for its enterprise-grade carbon accounting capabilities and close integration with investor and regulatory expectations. It focuses heavily on precision and auditability in emissions data, making it a popular choice among large corporations and fast-scaling tech companies. 

Watershed’s strength lies in Scope 1–3 emissions tracking, real-time dashboards, and deep analytics that support both reporting and decision-making. It also partners with firms like PwC for assurance readiness and has strong traction in the North American and European markets.

Key Features

• Offers detailed Scope 1, 2, and 3 carbon accounting aligned with GHG Protocol.
• Provides real-time dashboards with emissions breakdowns by business unit.
• Supports SEC, CDP, and TCFD-aligned ESG reporting.
• Integrates with procurement and travel systems for live Scope 3 data.

Pros

• High accuracy and audit-ready emissions tracking at enterprise scale.
• Robust integrations for real-time data capture across systems.
• Partnered with PwC and others for assurance and compliance support.

Cons

• Pricing is premium and less accessible for mid-market companies.
• Heavily carbon-focused—limited support for broader ESG topics like governance or DEI.
• Limited regional flexibility for India- or APAC-specific disclosure frameworks.

How to Successfully Integrate ESG Reporting Tools into Your Business?

Successful integration depends on more than installing software; it requires strategic intent, cross-functional buy-in, and a long-term mindset. Below are best practices that help ensure your ESG reporting solution is not only adopted, but actively drives value:

1. Anchor the Tool to Strategic Goals

Start by mapping the tool’s capabilities to your company’s ESG roadmap. Whether you're focused on net zero, regulatory compliance, or investor transparency, the tool should enable—not just track—your strategic priorities. If it’s not linked to outcomes, adoption will stall.

2. Adapt Internal Processes Early

ESG reporting tools often expose inefficiencies in data flow, roles, and responsibilities. Before rollout, take time to audit your current ESG workflows. Adjust data collection practices, centralize fragmented data, and establish clear responsibilities for data owners, reviewers, and approvers.

3. Get Stakeholders on Board Early

IT, sustainability, legal, procurement—multiple teams will interact with the ESG tool. Involve them early, explain how the tool benefits their work, and surface any operational or cultural barriers before they become resistance points. ESG success depends on cross-departmental collaboration.

4. Invest in Role-Specific Training

Different users need different levels of tool engagement. Tailor training by role: data contributors need clarity on input formats and timelines, reviewers need validation protocols, and leadership needs visual dashboards for insights. Training should also reinforce why ESG matters—not just how to use the platform.

5. Support the Human Side of Change

Switching from spreadsheets to an ESG platform involves behavior change. Build a clear transition plan that includes internal champions, a knowledge base, and accessible help. Make the shift feel like an upgrade, not an obligation.

6. Prioritize Data Governance

High-quality ESG reporting starts with trustworthy data. Use the tool’s validation, audit trails, and version control features to build a reliable data backbone. Define what “good” data looks like across the organization, and embed controls from the start.

7. Run a Controlled Pilot First

Before launching company-wide, pilot the tool with a small team or business unit. This lets you spot data gaps, usability issues, or integration problems. Use feedback from the pilot to fine-tune your processes, templates, and training materials.

8. Review and Evolve

Integration doesn’t end after go-live. Set quarterly reviews to check how the tool is performing, which modules are underutilized, and whether new regulatory needs require reconfiguration. A flexible tool should evolve with your business and ESG maturity.

9. Build a Feedback Loop

Encourage users to share ongoing experiences—both technical and strategic. This input can shape future updates, improve onboarding, and highlight recurring challenges. A feedback culture helps ensure continuous improvement and long-term engagement.

AI-Powered ESG Reporting Tools For Seamless Sustainability Compliance

While we’ve covered the best ESG reporting tools in 2025, shortcomings like limited automation and global reach, or a narrow ESG scope beyond carbon reporting can become serious roadblocks for businesses trying to align with long-term ESG goals and regulations.

That’s where platforms like Breathe can make a difference. 

Breathe ESG doesn’t just check compliance boxes—it offers end-to-end ESG management powered by AI, covering everything from automated data ingestion to multi-framework reporting, stakeholder materiality, and decarbonisation planning. 

It tackles limited automation with INARA AI, which streamlines disclosures, flags inconsistencies, and enables predictive insights, reducing manual work at every step.

Book a demo to explore AI-powered ESG reporting at your fingertips.

FAQs

What is the best ESG software?

The best ESG software is one that supports global reporting standards, automates data collection, enables Scope 1–3 emissions tracking, and scales with your business. AI-powered tools like Breathe ESG stand out for their end-to-end capabilities—from reporting and carbon management to AI automation and advisory support—all in one integrated platform.

How is ESG reporting done?

With Breathe ESG, reporting starts by centralizing data from across departments and systems using its Unified Data Hub. The ESG reporting platform then maps this data automatically to global frameworks like GRI, TCFD, BRSR, and CSRD. INARA, Breathe’s AI engine, validates, autofills, and detects anomalies to ensure accuracy. From there, users can generate structured, audit-ready reports and track progress against ESG targets—all within one integrated platform.

What are the pillars of ESG reporting?

The three core pillars are: Environmental (climate impact, emissions, resource use), Social (labour practices, diversity, community impact), and Governance (ethics, board structure, risk management). Breathe ESG supports all three by offering tools for emissions tracking, stakeholder engagement, policy reviews, and materiality assessments in one cohesive system.