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Sustainability Software Evolves for Compliance, ISG 2025 Guide


Sustainability Software Evolves for Compliance, ISG 2025 Guide
  • by: Source Logo
  • |
  • January 23, 2026

Enterprises are turning to advanced sustainability software to navigate stricter regulations, diverse stakeholder expectations, and the need for accurate environmental impact measurement and disclosure.

Quick Intel

  • Sustainability software demand surges as regulators and stakeholders require enterprises to measure, analyze, and report environmental data for compliance and resource monitoring.
  • Enterprises face challenges from divergent regulations, ambiguous definitions, inconsistent measurement methods, and limited data visibility, with half expected to lack sufficient tools through 2027.
  • Key needs include automated data collection, real-time tracking, audit-ready disclosures, risk analysis, AI-driven forecasting, and predictive analytics.
  • ISG evaluated 20 providers in Sustainability Management, Insights, and Compliance categories, naming Workiva, Salesforce, and Oracle as top Overall Leaders across multiple areas.
  • Emerging providers like Pulsora, Watershed, and Sweep lead in innovative, cost-effective sustainability software solutions.
  • Software platforms must adapt to double materiality, addressing both business impacts on the environment and environmental effects on business results.

Sustainability software has become essential for enterprises amid rising pressure from regulators and stakeholders to transparently measure and disclose environmental impacts. Global AI-centered technology research and advisory firm Information Services Group (ISG) highlights that organizations require reliable applications to collect, analyze, and report sustainability data effectively.

Companies prioritize consistent and accurate sustainability data not only for regulatory compliance but also to track resource usage across operations. A growing array of software platforms addresses these diverse and evolving demands, helping enterprises achieve transparent and auditable disclosures.

Challenges in Environmental Sustainability Measurement

The environmental aspect of sustainability proves the most complex, encompassing risks to business and mitigation strategies. Under double materiality principles, enterprises must assess how their operations affect the environment and how environmental factors influence business performance.

Despite emerging frameworks for uniform data and disclosures, many organizations struggle with ambiguous definitions, inconsistent methods, and poor visibility into environmental data. ISG predicts that through 2027, half of enterprises will lack adequate data and software to measure sustainability metrics for governance, risk management, and performance targets.

Regulatory Divergence Adds Complexity

Differing measurement and reporting standards across regions intensify challenges. The European Union's Corporate Sustainability Reporting Directive sets a strong mandate, while other governments and emerging U.S. state-level rules create variability. Multinational organizations face heightened complexity in aligning strategies.

Evolving Software Capabilities Meet Growing Needs

Enterprises seek sustainability software that automates data collection, enhances accuracy, and minimizes compliance risks. Demand rises for features like real-time tracking, audit-ready reports, risk analysis, AI-driven forecasting, and predictive analytics.

For the 2025 Buyers Guide for Sustainability Management, ISG assessed 20 providers across Sustainability Management, Sustainability Insights, and Sustainability Compliance categories: AMCS, AuditBoard, Benchmark Gensuite, Cority, Diligent, IBM, Microsoft, Nasdaq, Oracle, Persefoni, Position Green, Sage, Salesforce, SAP, ServiceNow, Sievo, Sphera, Tango, Wolters Kluwer, and Workiva.

Leadership in Sustainability Categories

In Sustainability Management, Workiva ranked as top Overall Leader, followed by Salesforce and Oracle, with all three designated Leaders in four evaluation categories and rated Exemplary.

For Sustainability Insights, Salesforce led overall, followed by Workiva and Oracle, with Salesforce achieving Leader status in five categories.

In Sustainability Compliance, Workiva again topped the list, followed by Oracle and Salesforce.

The 2025 Buyers Guide for Sustainability Emerging Providers evaluated 12 innovative providers: Datamaran, EcoOnline, Greenly, Green Project, Lucanet, Novata, Novisto, Plan A, Pulsora, Sweep, Watershed, and Worldly. Pulsora emerged as top Overall Leader, followed by Watershed and Sweep.

“Companies need consistent, accurate sustainability data to both comply with regulations and monitor how resources are used across the business,” said Robert Kugel, executive director, Business Research, ISG. “They have a growing number of software platforms to choose from that can meet diverse, evolving requirements.”

“Enterprises evaluate sustainability software based on multiple factors, including the platform’s adaptability to integrate with existing systems,” said David Menninger, executive director, software research, ISG. “This research provides a comprehensive set of software provider ratings based on our RFI (request for information) framework, which allows organizations to determine which products can best meet their current and future needs.”

ISG's Buyers Guides for Sustainability stem from extensive market and product research, offering independent insights to optimize technology investments.

About ISG

ISG  is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

  • Sustainability ManagementCompliance TechISG Research
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