Verimus, an Australian legal tech company, has unveiled Clear ESG, a new software package designed to address the growing need for environmental, social, and governance (ESG) compliance tools in the Australian market.
The launch comes as new research conducted by Verimus reveals a significant gap between global ESG software development and solutions tailored for Australian businesses.
The study highlights a worldwide boom in ESG technology, with over 188 new software packages introduced since 2020, accounting for more than 73 per cent of the total market offerings.
An overwhelming 83 per cent of these new products focus on carbon accounting, reflecting the increasing emphasis on mandatory climate reporting across developed economies.
Kate Lawson, General Manager of Verimus, emphasised the limited relevance of many global ESG solutions for Australian businesses.
“Less than 37 per cent of the newly launched products are accessible in Australia, and a mere 5 per cent have been created in or specifically tailored for the Australian market,” Lawson stated.
She warned that this disparity could lead to the use of foreign calculations that may provide misleading data, potentially resulting in accusations of greenwashing and litigation risks.
The launch of Clear ESG is particularly timely, as Australia has recently introduced amendments to the Corporations Act, mandating climate-related financial disclosures to be phased in from this year.
This legislative change aligns with global trends, as evidenced by the surge in ESG software development worldwide.
Clear ESG distinguishes itself as the first software solution developed in Australia to meet local regulations while complying with international requirements.
The package offers a unique combination of cutting-edge legal insights, developed in partnership with law firm Cowell Clarke, regulatory compliance features, access to world-class global databases, and financial system integration.
As companies worldwide strive to meet regulatory requirements and stakeholder expectations, the demand for robust carbon accounting tools is expected to continue its upward trajectory.
The introduction of Clear ESG represents a significant step in addressing the specific needs of Australian businesses in navigating the complex landscape of ESG compliance and reporting.
