Should you find yourself in the market for ESG software, either for the first time or as a repeat buyer, it’s important that you make an informed and confident decision. Neglecting to do so could lead you down an expensive path that also costs you a lot of valuable time.
Fortunately, when you answer the right questions before buying, you never have to worry about a mistake. You can be sure that you’re buying an affordable software solution that provides all the features you need. With all this in mind, let’s examine five of the most important questions to answer before buying ESG software.
1. Do you know the difference between ESG software and sustainability reporting software?
Many people believe that ESG software and sustainability reporting software are one and the same, but this isn’t true. There are some key differences that you must be aware of. This knowledge ensures that you choose the right solution for the challenge you’re facing.
While ESG software is a comprehensive solution, sustainability reporting software is more targeted. Instead, it’s used mainly to track environmental metrics — such as water use — and generate a report based on that data. You can even use ESG software alongside sustainability reporting software.
2. What features are most important to you?
It’s safe to assume that some features of ESG software will be more important to you than others. Making a list of must-haves will help you narrow your choices and make an informed buying decision. Here are some of the most common features:
- Data collection: ESG software typically includes tools for collecting data on various ESG metrics, such as carbon emissions, water usage, and employee diversity.
- Data analysis: ESG software may include tools for analyzing and visualizing data on ESG performance, such as dashboards and graphs.
- Reporting: ESG software may include tools for generating reports on an organization’s ESG performance, such as sustainability reports or corporate social responsibility (CSR) reports. With this feature, you don’t need to use a separate reporting solution.
- Risk management: ESG software generally includes tools for identifying and managing risks related to environmental, social, and governance issues, such as regulatory risks.
- Benchmarking: ESG software may include tools for comparing an organization’s performance to other organizations in the same industry or sector.
A solution with all of these features, among others, is generally best. But don’t expect every option to be the same. It’s important to compare shops so that you don’t miss out on something that you require.
3. How much experience do you have using ESG software?
Your level of experience will dictate which ESG software solution you purchase. For instance, if you’re an advanced user with many years of experience, you can probably manage any application on the market. Conversely, if you’re new to using ESG software, choose an application that is geared toward beginners.
4. What is your budget?
Features are important, but having a solid budget is a close second. You can find the best ESG software on the market, but if it doesn’t fit your budget, you’re going to be disappointed in the end.
Clearly define how much money you’re willing to spend and only shop for solutions within that price range. This will help you avoid choosing an application that doesn’t fit into your budget.
5. Have you read online reviews of the solutions you’re considering?
If the answer is no, now’s the right time to do so. You’re taking a big risk if you purchase ESG software before you read what other users have to say. Don’t believe everything you read, but search for common themes that can help you formulate an opinion.
It may take a few hours (or longer) to read enough reviews to feel comfortable, but it’s well worth it when you consider the impact it’ll have on your final decision. There’s no point in buying software before utilizing all of the information that is available to you.
The Final Word
Buying ESG software is a big decision. The wrong choice today can cost you time and money tomorrow. By answering these five questions, among others, you can be confident in the decision you make.
Do you have experience comparing and buying ESG software? Would you add any questions to the five above?
