Sustainability is no longer optional, it’s a mandate.
Regulatory bodies, investors, and even customers are increasingly demanding transparency around a company’s Environmental, Social, and Governance (ESG) practices. However, for most organizations, implementing an ESG Software is an overwhelming task, often plagued by disconnected systems, manual data entry, and inconsistent metrics.
Traditional ESG tools are often expensive, complex to implement, and require data to be stitched together from multiple sources, from accounting systems to employee records and carbon tracking tools. This not only leads to errors and delays but also fails to provide actionable insights for real improvement.
The Challenges Businesses Face without ESG Management Software:
- Data Silos: ESG data often lives in multiple departments- HR, Finance, Operations, etc., making consolidation time-consuming and error-prone.
- Manual Processes: Businesses rely heavily on spreadsheets and manual calculations to measure carbon footprints or track diversity metrics.
- Compliance Complexity: Aligning ESG reports with international standards like GHG Protocol or Bilan Carbone requires deep expertise and ongoing updates.
- Lack of Real-Time Insights: Without integrated analytics, identifying areas for emission reduction or social improvement becomes reactive rather than proactive.
- Cost of Existing Tools: Most ESG Reporting tools are either too expensive for SMEs or require extensive customization and external consulting.
Odoo 18.3 Introduces all new ESG App: Here’s all you need to know about it!
The new ESG app is a comprehensive module designed to help businesses measure and report their Environmental, Social, and Governance impact seamlessly.
It pulls data from other Odoo apps like Accounting, Employees, Fleet, and Payroll to automate data collection, ensuring ESG reporting is accurate, real-time, and standards-compliant.
Whether you’re looking to monitor emissions, evaluate social equity, or ensure transparent governance practices, ESG Management in Odoo has never been more streamlined.
Odoo’s ESG flow is designed to streamline data collection, calculation, and reporting by integrating tightly with your existing business processes. Here’s how the flow works from start to finish:
1. Data Collection from Source Modules
The ESG app doesn’t work in isolation, it pulls relevant activity data automatically from other Odoo modules, such as:
- Fleet: Fuel consumption, mileage, and vehicle usage
- Accounting: Purchases, vendor bills, and expenses by account
- Employees & Payroll: Gender, salary data, departments
- Timesheets & Projects: Time spent per activity or project
This integration ensures ESG metrics are grounded in real operational data; no extra data entry needed.
2. Activity Records Logged in ESG
Each tracked event or transaction becomes an activity line in the ESG module. For example:
- A vehicle trip logs fuel consumption from the Fleet module
- A supplier invoice tagged to an emission-sensitive product logs into ESG from Accounting
- Employee distribution and salaries are logged from HR & Payroll
These activity lines form the foundation for all ESG calculations.
3. Application of Emission Factors
Once activities are captured, Odoo automatically applies emission factors to calculate the associated greenhouse gas (GHG) emissions. Emission factors can be:
- Physical-based (e.g., kg CO₂/km or kWh)
- Monetary-based (e.g., kg CO₂ per euro spent)
You can define these emission factors manually or import them from certified databases. They can be assigned based on:
- Product categories
- Accounts
- Partners or vendors
4. Emission Calculations and Categorization
The system calculates emissions (in tCO₂e) and categorizes them into Scope 1, Scope 2, or Scope 3, aligning with GHG Protocol standards:
- Scope 1: Direct emissions (e.g., company vehicles)
- Scope 2: Indirect energy-related emissions (e.g., purchased electricity)
- Scope 3: Value chain emissions (e.g., suppliers, business travel)
This helps businesses get a full view of their environmental impact.
5. ESG Reporting & Analytics
Once calculations are in place, Odoo presents the data through:
- Graphs and charts by year, activity type, and scope
- Carbon footprint dashboards
- Social metrics visualizations (e.g., gender parity, pay gap)
The following screenshots are insights that help stakeholders quickly identify high-impact areas and track improvements over time.
6. Continuous Monitoring and Adjustments
As your team continues using other Odoo apps, the ESG app updates automatically, with no repeated configuration or duplicate entries. It’s a living system that evolves with your operations.
Why Choose Odoo for ESG Management?
- Integrated: No need for third-party tools. ESG data is pulled directly from your existing Odoo apps.
- Automated: Eliminate manual errors and reduce time spent on data gathering.
- Affordable: As with all Odoo apps, pricing is transparent and SMB-friendly.
- Compliant: Stay aligned with international standards for sustainability reporting.
Key Benefits: Odoo for ESG Management
- Carbon Analytics Made Easy
With built-in carbon analytics, you can visualize emissions by year, scope (Scope 1, 2, or 3), and activity type. The dynamic graphs help identify hotspots for reduction and inform better sustainability decisions.
- Comprehensive Carbon Footprint Reporting
Odoo ESG Software enables businesses to generate complete carbon footprint reports in tCO₂e, fully aligned with international standards like the GHG Protocol and Bilan Carbone. This ensures your reports are audit-ready and globally recognized.
- Smart Emission Factor Mapping
Convert activity data into greenhouse gas (GHG) emissions using both:
Physical methods: e.g., kg CO₂/km
Monetary methods: e.g., kg CO₂/€ spent
Assign emission factors based on product, partner, or account automatically, or import certified values from established databases. It’s flexible and built to scale with your reporting needs.
- Social Impact Metrics
On the social front, Odoo helps track critical indicators like:
Gender parity: Overall, by department, role, and location
Pay gap analysis: Between male and female employees, using data from Employees and Payroll apps.
Ready to elevate your ESG strategy? Talk to our experts to see how Odoo can work for your business.
