CA Technologies, CarbonSystems, Cloudapps, Credit360, Enablon, IHS, PE International, Schneider Electric and Verisae lead the global sustainability management software market, according to a report by independent analysis firm Verdantix.
The Green Quadrant Sustainability Management Software report, which provides a detailed benchmark of 15 software suppliers, aims to help chief sustainability officers, vice presidents of environmental health and safety, and corporate social responsibility directors short list preferred software and make purchase decisions. The analysis combines product benchmark data from 15 suppliers, responses to an 87-point questionnaire and interviews with an independent panel of 15 customers across 11 industries.
Enhanced data quality is the dominant reason firms purchase sustainability management software. Some 93 percent of the customer panel rated enhanced data quality as a very important benefit (see graphic).
The analysis found the market for sustainability management software shows strong growth in customer numbers despite facing downward pressure on software license fees. The increasing financial materiality of sustainability issues is pushing firms such as Adidas and Chevron to invest in software that enhances data quality, saves processing time, drives executive engagement and improves mandatory and voluntary reporting, said Verdantix analyst Samantha Price, who authored the report.
By 2016, pressure from regulators, stock exchanges, rating agencies, lenders, customers, competitors and nonprofits to disclose more data on material risk linked to environmental, social and governance issues will drive a major increase in demand for sustainability data management, the analysis says. Firms will increase spending on sustainability initiatives as global economic growth improves.
A separate Verdantix study released in January says CA Technologies, CarbonSystems, IBM, Schneider Electric and Verisae lead the global market for energy management software. The study compares 14 enterprise-class energy management software applications to help corporate buyers save time, reduce cost and mitigate risk in supplier selection.