ESG Today reports that, according to Microsoft, the new solution is currently in preview, meaning that it could soon hit the market, and it aims to help organizations overcome reporting challenges. Brandon Potter, Director for Microsoft Cloud for Sustainability, said that "ESG disclosure reporting can be a complex and challenging process for companies. For example, there is no global standardization in ESG reporting, which makes it difficult to know what metrics to report and how to structure disclosures."

The tool will include reporting schemes according to various standards, such as EU's CSRD, as well as IFRS S1 and S2. It will also offer integration with Microsoft’s Sustainability Manager, another piece of software that allows organizations to optimize their internal operations using Excel to ensure ESG compliance.

Potter added that "with the new project ESG reporting (preview) tool, organizations can streamline the reporting process by collaborating on environmental, social, and governance (ESG) standards and frameworks at the same time."