What's the difference between ESG reporting software and sustainability tracking tools?

ESG reporting software is built around producing standardized disclosures — for a framework like CSRD or GRI — that satisfy an external audience such as investors or regulators. Sustainability tracking tools are more often internal-facing, measuring things like carbon footprint or energy use without necessarily formatting them for a compliance filing. Some products do both; check which one a listing is actually built for.

Do I need this if my company isn't legally required to report on ESG yet?

Depends on your customers, not just your regulator — many companies start tracking well before a legal requirement hits because a larger customer's procurement process asks for the data. If neither applies to you yet, lightweight tracking is usually enough; you don't need full reporting-grade software.

How reliable is the data these tools produce — is it audit-ready?

Varies a lot by tool and by how the underlying data is collected — estimated versus metered. Each listing notes whether it supports third-party assurance or audit trails, since that's the difference between "good enough for internal tracking" and "good enough to submit to a regulator."