Top 10 Features to Look for in CSRD Software for 2025

In the evolving landscape of sustainability, the Corporate Sustainability Reporting Directive (CSRD) has set a new standard for Environmental, Social, and Governance (ESG) reporting. As organisations navigate these stringent regulations, the role of CSRD compliance software becomes paramount. By streamlining data collection, enhancing accuracy, and ensuring seamless adherence to reporting standards, this technology is reshaping how companies address ESG priorities, especially in environmental performance areas like carbon reporting. 

With environmental impact and carbon disclosures forming a critical aspect of CSRD compliance, businesses are now prioritising tools that align operational transparency with regulatory requirements. In this blog, we delve into the top 10 features every organisation should look for in CSRD compliance software—ensuring not just compliance, but a strategic edge in sustainability reporting. 

1. Comprehensive ESG Data Integration 

CSRD requires organisations to report on a wide range of Environmental, Social, and Governance (ESG) metrics, which often come from disparate sources—internal systems, suppliers, and third-party datasets. Comprehensive ESG data integration ensures all relevant metrics are captured in one platform. To explore how to select the right ESG software for seamless data integration and compliance, check out our blog on How to Choose the Best ESG Software. 

How does it relate to CSRD? 

The CSRD expands reporting requirements to include detailed disclosures on biodiversity, social impacts (e.g., labour practices), and governance (e.g., anti-corruption efforts). A robust software solution integrates these varied datasets, ensuring compliance with CSRD’s enhanced transparency expectations. 

2. Alignment with CSRD Standards and Frameworks 

CSRD mandates adherence to European Sustainability Reporting Standards (ESRS), which specify the structure, metrics, and methodologies for ESG disclosures. The software must be pre-configured to meet these standards while supporting global frameworks like GRI, SASB, and TCFD. 

How does it relate to CSRD? 

CSRD places a strong emphasis on harmonisation and comparability of data across industries. Software that aligns with ESRS ensures organisations can produce consistent and compliant reports while leveraging recognised frameworks to provide additional context. 

3. Multi-Layered Reporting Capabilities 

This feature allows organisations to generate various types of reports—detailed reports for regulatory filings, summary dashboards for leadership, and stakeholder-specific disclosures. Reports can be customised to meet different audience needs, including those required for assurance purposes under CSRD. 

How does it relate to CSRD?

The CSRD mandates public disclosure of sustainability information in the European Single Electronic Format (ESEF). Advanced reporting capabilities ensure that businesses can create ESEF-compliant reports and maintain transparency with diverse stakeholders, including investors and regulators. 

4. Double Materiality Assessment 

Double materiality requires businesses to evaluate both financial materiality (how sustainability factors affect financial performance) and impact materiality (how the company impacts the environment and society). 

How does it relate to CSRD? 

Double materiality is a cornerstone of the CSRD. Software with built-in workflows for double materiality assessments simplifies compliance by guiding users through the evaluation process and generating ready-to-submit disclosures that meet ESRS requirements. 

5. Automated Data Collection and Validation 

Automation helps organisations collect ESG data from various sources, including internal systems, IoT devices and supplier portals. Validation mechanisms ensure the data is complete, accurate, and aligned with CSRD expectations. 

How does it relate to CSRD? 

CSRD requires accurate, auditable ESG data for both mandatory and forward-looking disclosures. Automation reduces the risks of errors associated with manual processes, enabling faster and more reliable compliance. 

6. Scenario Analysis and Forecasting 

Scenario analysis involves modelling future impacts of climate change, regulatory shifts, and stakeholder expectations on business operations. Forecasting tools estimate future performance and risks under various scenarios. 

How does it relate to CSRD? 

CSRD emphasises forward-looking disclosures, requiring organisations to explain how they plan to manage long-term sustainability risks and opportunities. Scenario analysis tools align with these requirements, allowing businesses to assess potential outcomes and strategise accordingly. 

7. Audit Trail and Traceability 

Audit trails log every change to ESG data, including the source of the data, edits made, and the user responsible. Traceability ensures transparency and compliance during audits. 

How does it relate to CSRD?

The CSRD introduces mandatory assurance requirements for sustainability reports, meaning auditors will scrutinise the data. A robust audit trail provides the transparency needed to pass these audits with confidence, reducing compliance risks. 

8. Social and Governance Metrics Tracking 

The CSRD software tracks key social and governance metrics, such as employee well-being, labour practices, board diversity, and anti-corruption efforts. 

How does it relate to CSRD? 

CSRD significantly broadens the scope of sustainability reporting to include social and governance aspects. Software that can comprehensively track and report on these areas ensures organisations meet the directive’s requirements for holistic ESG disclosures. 

9. Regulatory Updates and Flexibility 

This feature ensures the software stays updated with the latest regulatory changes, such as revisions to ESRS or evolving CSRD requirements. Flexible configurations allow businesses to adapt to these changes without system overhauls. 

How does it relate to CSRD? 

As CSRD continues to evolve, businesses need tools that can adapt quickly to new requirements. Software that provides real-time updates and flexibility ensures organisations remain compliant without disruptions. 

10. Supplier and Stakeholder Collaboration Tools 

Effective ESG reporting often requires data from suppliers and collaboration with stakeholders. Features like supplier portals and shared dashboards enable seamless communication and data sharing. 

How does it relate to CSRD? 

CSRD emphasises supply chain transparency and stakeholder engagement. Tools that facilitate supplier collaboration help businesses gather necessary data for Scope 3 emissions reporting and align their sustainability strategies with stakeholder expectations. For a deeper understanding of how Scope 3 emissions are addressed in manufacturing, explore our blog on Scope 3 Emissions Examples in Manufacturing. 

How to Choose the Best CSRD Software? 

1. Understand Your Organisation’s Needs 

Begin by assessing your company’s specific CSRD compliance requirements. Consider factors like your industry, the size of your organisation, the complexity of your operations, and the data sources you’ll need to integrate. 

Why it matters? 

Every organisation’s sustainability journey is unique. Understanding your needs ensures the software you choose aligns with your business objectives and simplifies CSRD reporting. 

2. Research CSRD and Related Standards 

Familiarise yourself with the Corporate Sustainability Reporting Directive (CSRD), European Sustainability Reporting Standards (ESRS), and other related frameworks like GRI, SASB, and TCFD. Create a checklist of mandatory requirements, such as double materiality, forward-looking disclosures, and assurance readiness. 

 Why it matters? 

Knowing what CSRD entails will help you evaluate software options that comprehensively cover these standards. 

3. Identify and Shortlist Potential Vendors 

Search for vendors specialising in CSRD compliance or ESG software that explicitly mentions support for the directive. Shortlist solutions that align with your checklist from Step 2. 

Why it matters? 

Not all ESG software is tailored for CSRD compliance. Shortlisting relevant vendors narrows your focus to tools that cater specifically to your needs. 

4. Request Demos and Explore Trial Versions 

Contact shortlisted vendors and request product demos or trial versions. Test the software with real-world scenarios relevant to your organisation, such as uploading data, generating reports, or conducting a materiality assessment. 

Why it matters? 

Hands-on experience reveals how user-friendly, efficient, and compliant the software is. A demo helps you determine if it fits your operational needs. 

5. Evaluate Integration Capabilities 

Determine whether the software integrates seamlessly with your existing systems, such as ERP, HR, finance, and supply chain tools. Test its ability to gather data from multiple sources, including suppliers and third parties. 

Why it matters? 

CSRD compliance requires input from various departments and external stakeholders. Smooth integration prevents data silos and ensures comprehensive reporting. 

6. Check Vendor Reputation and Support Services 

Review the vendor’s reputation by reading case studies, testimonials, and independent reviews. Assess their customer support, including training resources, onboarding services, and responsiveness to queries. 

Why it matters? 

A reliable vendor ensures you get the support needed to navigate complex CSRD requirements and adapt to regulatory changes. 

7. Assess Cost vs. Value 

Request detailed pricing information from vendors, including implementation costs, subscription fees, and support charges. Evaluate the software’s ROI by considering how much it will save in compliance costs, manual efforts, and reporting accuracy. 

Why it matters? 

While cost is important, focus on long-term value. A slightly higher investment in robust software can prevent penalties and improve operational efficiency. 

8. Prioritise Scalability and Future-Readiness 

Choose software that can adapt to future changes in CSRD regulations or accommodate growing organisational needs, such as new reporting requirements or additional data sources. 

Why it matters? 

CSRD is likely to evolve over time. Scalable, future-ready software protects your investment and ensures compliance for years to come. 

9. Compare and Finalise 

Compare shortlisted solutions based on functionality, usability, compliance coverage, and pricing. Use a scoring system if needed to objectively evaluate each option. Involve key stakeholders in the final decision. 

Why it matters? 

This ensures you choose the software that offers the best balance of compliance, usability, and long-term value. 

10. Monitor and Review Performance 

After implementing the software, periodically assess its performance. Ensure it meets your reporting needs, adapts to updates in CSRD regulations, and provides value through efficiency and insights. 

Why it matters? 

Ongoing evaluation ensures the software continues to meet your organisation’s compliance and sustainability goals. 

Beyond the Features: Why CSRD Matters?

CSRD compliance is not just a regulatory necessity; it is a strategic opportunity. The directive’s emphasis on transparency and accountability fosters investor confidence and enhances an organisation’s reputation. To learn more about the nuances of CSRD and its implications, explore our detailed blog on carbon accounting software and CSRD. 

How Mavarick Helps? 

Mavarick offers an AI-driven ESG data management platform designed for organisations with complex supply chains. It simplifies sustainability data tracking, automates regulatory reporting such as CSRD, and provides actionable recommendations for achieving sustainability targets. This enables businesses to ensure compliance, improve efficiency, and enhance sustainability efforts seamlessly. 

Mavarick’s cutting-edge ESG platform is designed to simplify CSRD compliance while driving sustainability performance. With features like automated data collection, real-time analytics, and comprehensive Scope 3 management, Mavarick empowers businesses to meet their reporting obligations with ease.  

Wrapping Up 

Choosing the right CSRD compliance software is not just about meeting regulatory requirements—it’s about equipping your organisation to embrace transparency, accountability, and sustainability as strategic advantages. By carefully assessing your needs, understanding the directive’s complexities, and selecting a scalable, future-ready solution, you’re not only ensuring compliance but also laying the groundwork for long-term ESG excellence. 

With the Corporate Sustainability Reporting Directive raising the bar on ESG disclosures, the right software acts as more than a compliance tool—it becomes a catalyst for driving meaningful change, fostering stakeholder trust, and contributing to a more sustainable future. 

Your journey toward seamless CSRD compliance starts with making the right choice today. If you're ready to simplify your reporting processes and align with CSRD requirements, contact Mavarick to explore how our solutions can support your sustainability goals.