Many companies try to manage their ESG data using Excel spreadsheets and manual processes. The result: inconsistent data collection and an error-prone process that is not much fun. But there is another way. iron supported Homann Holzwerkstoffe in selecting a suitable tool for the company's ESG data management – from analyzing the status quo to demo appointments with providers to the final tool selection. The conclusion: The market offers countless ESG tools, but not all of them are suitable for every company. In this article, you will learn why it is worth investing some time in making an informed selection of a suitable tool.
Manual collection of ESG data quickly reaches its limits. Homann Holzwerkstoffe also presented a picture that is still the norm for most medium-sized companies: data collection was previously based on Excel and manual email queries. This means that data is sometimes inconsistent and often read manually from different systems such as SAP or PowerPoint. There was no automatic consolidation of site data, which is another potential source of error. Added to this were language barriers at the sites abroad. This resulted in an enormous amount of work for the ESG manager, who had to compile the data on time and in the required quality.
What was still manageable under the previous voluntary reporting system will become even more difficult in view of the future CSRD reporting requirements. Without structured data management, ESG reporting becomes a Sisyphean task – especially when different requests from customers, banks, or for internal reports have to be answered. A professional ESG data management tool that not only collects data but also automates reporting can help. Automated processes, greater transparency, and higher acceptance. But which tool is right for your company?
From the status quo to the final tool selection
The iron team advised Homann Holzwerkstoffe on selecting the right tool. The first step was to conduct a status quo analysis: What is working well so far? Where are the weak points? What data is already available? And does the current data quality meet the requirements of the ESRS standards?
Based on this analysis, clear tool requirements were jointly developed: automated data collection, multilingualism, interfaces to existing systems, audit security, and an intuitive user interface were key criteria. iron presented an initial selection of potential tools, from which Homann Holzwerkstoffe selected three providers for initial discussions.
In the demos, the providers presented their solutions using concrete example key figures. Each tool had its strengths in different areas such as AI support, simultaneous translation of data entries, user-friendliness, or availability of interfaces.
The critical steps before and during tool implementation
But even a tool alone cannot solve all problems—without clear governance, defined processes, and methodological foundations, even the best system will remain ineffective. That is why iron developed a guide with three key components:
1. Governance & responsibilities: Who is responsible for which data? How is training organized? How is the ESG data management process linked to financial reporting? Clear roles provide structure and ownership. Continuous communication and feedback processes are also crucial to get everyone on board, especially at the beginning of implementation.
2. Data collection processes: How often is data collected? Which data sources are binding? How is completeness checked? Clear procedural instructions with deadlines, responsibilities, and plausibility checks create reliability and make the process audit-proof.
3. Data collection methodology: Which definitions apply to which key figures? Which emission factors are used? How are assumptions documented? So-called "indicator profiles" developed by iron create uniform standards. The application of recognized methods such as the GHG Protocol or ISO standards ensures comparability over time.
"The sheer number of ESG tools is overwhelming. Thanks to our many years of collaboration, iron knows our corporate structure very well and has helped us identify the right tool for us on this basis."
Christina Busch, Sustainability Manager at Homann Holzwerkstoffe
Conclusion: Solid ESG data management as the basis for efficient reporting
ESG tools are a dime a dozen – but not every tool is suitable for every company. The tool landscape is complex, and an ill-considered choice can cost a company a lot of time and money. A structured selection process, such as the one iron carried out for Homann Holzwerkstoffe, is worthwhile: it creates clarity, saves resources, and lays the foundation for solid ESG data management that is accepted within the company.
Starting in fiscal year 2027, companies in the so-called second wave will have to collect audit-proof data for CSRD reporting. This affects not only those who are themselves subject to CSRD reporting requirements, but also their customers and suppliers, from whom ESG data is requested due to the so-called "trickle-down effect." It is therefore advisable to use 2026 to set up the ESG data management process so that data can be collected smoothly and in an audit-proof manner from January 1, 2027.
Those who act now will not only gain regulatory certainty, but also a strategic advantage: structured ESG data management creates transparency, increases credibility with stakeholders, and significantly reduces the effort involved in reporting.
