Daato: Vendor Analysis — ESG compliance solution overview, competitors, user considerations, analyst summary

In this Spend Matters Vendor Analysis, we give an overview of Daato, an ESG compliance solution built to address the challenges companies face with complying to different reporting frameworks.

The regulatory landscape that procurement professionals have to navigate is constantly changing. New regulations are frequently being introduced, especially regarding sustainability.

For example, in March 2024, the EU Member States approved the updated text of the Corporate Sustainability Due Diligence Directive (CSDDD). However, the European Parliament still has to vote on it. If passed, the CSDDD would introduce new requirements for companies to conduct sustainability due diligence across their operations, subsidiaries and supply chain. The text introduces compromises in its scope of application. Thresholds for companies covered was raised to 1,000 employees and revenue exceeding €450 million (with a staged approach), approximately a two-thirds reduction of companies covered by the previous text. The CSDDD sets out requirements for large companies regarding human rights and environmental protection across their global supply chains. It follows and broadens Germany's "Lieferkettengesetz" (Supply Chain Due Diligence Act), which applied to companies with 3,000 employees or more in 2023 and extended to organizations with over 1,000 employees in 2024.

These new regulations can be a real challenge to grasp. They often require organizations to implement and understand complex practices, such as data collection, analysis and reporting.

A provider that was created to alleviate these challenges is Daato. The modular software is designed to meet various reporting needs, with a particular focus on the EU’s regulations. It's a solution that can help customers easily gather, analyze and report on their sustainability and ESG metrics, providing them with the confidence they need to navigate these new regulations.

This Vendor Analysis provides an overview of Daato, looks at the competitive landscape and users’ considerations and closes with an analyst summary.

Here’s why Daato matters:
To the market — Daato is an ESG compliance solution that provides a modular platform to help organizations comply with various reporting frameworks and regulations, particularly in the EU, by assisting with data collection, analysis and reporting.

To potential buyers — A regulatory landscape that is constantly evolving makes it difficult for organizations without a solution like Daato to understand requirements and ensure compliance.