The inaugural Green Quadrant: ESG Reporting and Data Management Software report shows Sphera differentiating itself with top scores for voluntary reporting and regulated and mandated frameworks, as well as high scores for vision and strategy and ESG and sustainability performance management
Sphera, a leading global provider of environmental, social and governance (ESG) performance and risk management software, data and consulting services, has been named a Leader in the ESG reporting and data management software market by Verdantix, an independent analyst firm, in its inaugural Green Quadrant: ESG Reporting and Data Management Software 2023 report.
The newest Green Quadrant report aims to help organizations better understand the market evolution of the ESG reporting and data management software ecosystem by taking a deep dive into the current software platform offerings. The benchmark report, based on the proprietary Verdantix Green Quadrant methodology, assessed 15 capability and 11 market momentum categories. The analysis was also based on a two-hour, live brief and product demonstration, vendor responses to 115 questions and customer interviews. This report is a follow-up to the January 2023 Verdantix Smart Innovators: ESG Reporting and Data Management Software—that provided a high-level overview of capabilities on the market—in which Sphera was named a featured vendor.
Sphera tied for the highest score for vision and strategy, which assesses how vendors address and achieve target market opportunities and meet target customer needs, as well as ESG reporting and data management product strategy. Sphera’s vision of Operational ESG—where everyday activities feed real-time ESG metrics—is a robust, future-proof solution for customers’ ESG ambitions. Operational ESG is delivered on SpheraCloud, which is an end-to-end ESG and risk management solution on a single, scalable SaaS Platform. It breaks down information silos to help companies make better business decisions and mitigate risk at the enterprise, operational and product levels. Additionally, as companies face heightened scrutiny on corporate ESG performance, Sphera’s solutions help businesses prepare for regulatory reporting requirements.
Sphera achieved the highest score in the voluntary reporting category. The report shows that Sphera offers additional value in this area through “pre-defined configurations and templates for numerous voluntary frameworks, including CDP, GRI and SASB.” Sphera also received the highest score for regulated and mandated frameworks for its tools that enable companies to comply with regulations such as the Task Force on Climate-related Financial Disclosures (TCFD), EU Taxonomy, the Sustainable Finance Disclosure Regulation (SFDR) and the German Supply Chain Law.
“We are proud to be recognized by Verdantix as a Leader in ESG reporting and data management,” said Paul Marushka, Sphera’s CEO and president. “Sphera is committed to helping customers operationalize ESG throughout their organization to have a holistic view of their ESG performance. In an ever-evolving global regulatory landscape, it is essential for companies to have tools that enable them to prepare for reporting requirements, set science-based net zero targets and disclose ESG performance based on data that is transparent, actionable and auditable. Bringing innovative ESG and sustainability performance measurement tools to market is critical to our mission of creating a safer, more sustainable and productive world.”
Additionally, Sphera earned high marks for ESG and sustainability performance management. The report highlights the Targets and Actions feature in SpheraCloud Corporate Sustainability software for enabling “customers to develop targets for any ESG metric at different levels within their organization” and allowing “customers to create reduction action plans to manage and track improvement projects related to these targets.” Sphera helps companies to operationalize their ESG programs through solutions that go beyond traditional ESG reporting to provide insight into operational data across the enterprise and improve ESG performance. Sphera received the highest score for user interface. The criteria assesses interface usability, support of enhanced user adoption, number of interface languages provided out of the box and cost and time to add an additional language.
Jessica Pransky, principal analyst at Verdantix, said, “The growing number of regulations and increased pressure from stakeholders have made reporting on ESG and sustainability metrics for environmental topics, as well as social and governance issues, an absolute necessity. ESG data management is also now crucial for companies in decision-making on how to drive sustainability performance across their businesses and value chains. As a result, ESG reporting and data management software has shifted from being a nice-to-have to a must-have for many corporates.”
The Green Quadrant report notes that “Sphera combines its software platform and data content with its consulting branch to help companies navigate and improve their sustainability programs, such as by supporting customers in setting net-zero targets, performing double materiality assessments and providing guidance on corporate sustainability strategies.” The report also highlights Sphera’s history of serving large global firms in high-risk industrial sectors and expansion to consumer services, financial services, and technology. According to the report, this all makes Sphera particularly well-positioned to serve “firms across a variety of industries seeking sustainability software and consulting from one provider.”
Sphera empowers companies on their ESG journeys by aggregating enterprise, operational and product-level data. The report points to strong Scope 3 emissions capabilities, Sphera’s Life Cycle Assessment (LCA) database and Sphera’s AI-based Supply Chain Risk Management (SCRM) solution as reasons that “firms looking to improve sustainability throughout their supply chain should consider Sphera on their shortlist.”
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