Evaluating ESG Software Solutions for Sustainability Reporting in the Manufacturing Sector

Abstract The Corporate Sustainability Reporting Directive (CSRD) introduces stringent and standardised environmental, social, and governance (ESG) reporting obligations across the European Union, presenting significant challenges for manufacturing companies due to their resource-intensive operations and complex value chains. This study investigates the digital transformation of sustainability reporting by evaluating how ESG software tools support CSRD compliance. A comparative analysis was conducted on eight widely used ESG software solutions. Thirteen assessment criteria were applied, covering functionality, regulatory compliance, integration capabilities, cost transparency, and scalability. The role of artificial intelligence and advanced analytics in enhancing ESG data quality, automating reporting processes, and generating actionable insights is also explored as a critical enabler of reporting efficiency and accuracy. The findings show that while no tool meets all needs universally, specific solutions offer comprehensive capabilities for large manufacturers, while others are well-suited for SMEs. The study concludes with targeted software selection recommendations and outlines future research directions.