How to Choose the Right ESG System

How to Choose the Right ESG System

When it comes to selecting an ESG system, finding the right fit can feel overwhelming. To help guide you through the process, we’ve turned to the expertise of Ellinor Axelsson, founder of Parilo, a company dedicated to helping organizations identify the best ESG software for their needs. In a recent webinar, Ellinor shared her top recommendations for evaluating ESG systems and ensuring they align with your company’s goals.

1. Level of Advisory and Support

Ellinor emphasizes that ESG systems aren’t just about the technology—they’re also about the guidance and expertise they bring to your organization. Here are her key considerations:

• In-house expertise vs. external support: Assess your team’s current capabilities. Do you need external advisory support to guide sustainability efforts or primarily technical help with data management?

• Sustainability vs. tech focus: Some ESG systems excel at strategic sustainability advice (e.g., setting emissions targets), while others focus on robust data architecture. Choose based on your immediate needs.

• Hidden costs: Consider how much support is included in the price plan. Will there be extra charges for additional guidance or troubleshooting?

2. System Complexity

A good ESG system should integrate smoothly with your organization’s existing structure, whether you’re a small business or a multinational. According to Ellinor:

• Scalability matters: Ensure the system can handle the number of subsidiaries you manage, whether it’s five or fifty.

• User management: Look at how many people—reporters, auditors, or viewers—will interact with the system. A system that’s too complex can slow collaboration.

• Ease of use: Simplicity is key. A user-friendly interface minimizes training and improves adoption across your team.

• Customization vs. ready-to-go: Decide whether you want a plug-and-play system or a customizable solution tailored to your needs but potentially requiring more technical expertise.

3. ESG System Scope

Finally, Ellinor highlights the importance of ensuring the system covers the right areas for your organization.

• Functionalities: Does your company need support for CSRD reporting, carbon calculations, or supply chain management? Identify the most pressing needs.

• All-in-one vs. modular systems: A single, unified platform can streamline processes, but specialized tools might provide higher-quality functionality for specific tasks. Decide which approach fits your workflow best.

By considering these three areas—advisory support, system complexity, and scope—you’ll be better equipped to make an informed choice that supports your organization’s sustainability goals. Interested in how SustainLabs software meets this criterias? Schedule a demo.

Want expert guidance on how to find the best ESG system fit for your company?

Reach out to Ellinor.