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The 10 best software solutions to comply with SDR regulations
Updated on
26/11/25
The 10 Best Software Solutions to Comply with SDR Regulations
Talking About Sustainable Reporting in the UK: The Role of SDR
How SDR Software Helps Companies Meet Obligations
Advantages of Implementing SDR Software
Turning SDR Compliance into a Competitive Advantage
Dcycle: The ESG Solution for Any Use Case
Frequently Asked Questions (FAQs)
These are the 10 best software solutions to comply with SDR regulations in 2025:
Complying with the SDR (Sustainability Disclosure Requirements) has become a priority for companies that want to maintain market trust and avoid greenwashing risks.
Having a software solution to comply with SDR regulations allows you to structure ESG data, ensure its traceability, and guarantee that all disclosed information is coherent, verifiable, and aligned with regulatory criteria.
This UK regulatory framework demands clarity, consistency, and real evidence in all sustainability communications.
General promises or vague commitments are no longer enough. Companies now need solid ESG collection, control, and reporting processes capable of linking metrics to results and demonstrating with data what they publicly declare.
Businesses moving in this direction are transforming sustainability into a competitive advantage, using ESG management as a tool for continuous improvement, transparency, and internal efficiency.
Failing to adapt to these new requirements means losing visibility, opportunities, and even access to financing.
Below, we will explore how to implement a reliable system, which technical requirements it must meet, and which digital solutions make reporting under the SDR framework easier, so your organization can face this process with rigour, speed, and control.
Dcycle is an ESG solution for companies that want to automate compliance with SDR and other obligations related to sustainability management.
We are not auditors or consultants; we are a SaaS platform that centralizes all ESG data, allowing companies to collect, validate, and report information with total traceability and control.
Our approach is based on simplifying data management and minimizing manual processes.
We integrate internal company sources to consolidate the necessary information and distribute it across various use cases: SDR, CSRD, Taxonomy, ISOs, or EINF reports.
Everything is managed from a single environment, ensuring consistency and accuracy.
With Dcycle, companies can perform double materiality, calculate their Carbon Footprint, and export XBRL reports without relying on spreadsheets or fragmented processes.
In this way, we turn ESG management into a strategic tool that drives competitiveness and transparency.
Main advantages:
In summary, Dcycle transforms ESG management into a structured, scalable, and frictionless process, helping companies comply with SDR regulations efficiently and confidently.
Greenly stands out for offering an ESG measurement and tracking platform focused on agility.
Its approach is designed for companies that want to comply with SDR regulations quickly and efficiently, without the need to implement complex systems.
The system allows users to collect and normalize sustainability data, making it easier to generate reports aligned with different regulatory frameworks.
It also includes KPI monitoring and progress-tracking features, making it a valuable tool for organizations that need to demonstrate tangible results.
Main advantages:
Futureproof is a cloud-based solution designed to structure ESG information for mid-sized companies, enabling compliance with SDR, CSRD, or ISO frameworks with ease.
Its proposal focuses on operational simplicity and data traceability, helping reduce errors and maintain coherence across all ESG communications.
It includes an internal verification system and progress control, ideal for teams that seek visibility on sustainability goals and regulatory compliance progress.
Main advantages:
StepChange offers a guided-workflow platform for decarbonization and ESG compliance, with tools that help prepare reports consistent with SDR requirements.
Its system facilitates data collection and action-plan generation based on real results.
The goal is to guide the user throughout the entire reporting process—from identifying sources to the final presentation—reducing dependence on external consultants and accelerating compliance.
Main advantages:
Persefoni has established itself as a corporate-level carbon accounting and climate reporting platform, useful for organizations that must comply with SDR and align their disclosures with other global frameworks.
Its strength lies in the depth of ESG data analysis and the ability to connect financial indicators with sustainability metrics.
This helps companies understand how environmental and social factors impact their business performance.
Main advantages:
Together, these solutions represent different approaches to achieving SDR compliance, adapting to the needs and ESG maturity level of each company.
Watershed is an ESG management platform focused on data collection, consolidation, and climate analysis.
Its structure allows compliance with SDR regulations, combining carbon footprint measurement, goal tracking, and automated reporting in one digital environment.
It offers a high degree of integration with internal systems, facilitating data flow between departments and ensuring consistency between operational data and regulatory reports.
Main advantages:
Workiva focuses on the orchestration and control of ESG and financial reports, enabling companies to consolidate all their information within a single workflow.
Its approach aligns with SDR compliance by offering traceability, internal control, and auditability across every stage of the process.
The system is designed for finance and sustainability teams that need to collaborate in real time and maintain a single, consistent version of their data.
Main advantages:
VelocityEHS Accelerate ESG combines sustainability management with EHS (environment, health, and safety) modules, making it particularly useful for industrial companies seeking to align their operations with SDR requirements.
Its integrated approach consolidates environmental, social, and governance indicators, providing dynamic visualizations and automatic compliance alerts.
Main advantages:
Cority provides an ESG suite focused on data governance and risk management, tailored for organizations that want to integrate SDR compliance into their broader corporate strategy.
Its modular system covers the entire data lifecycle, including collection, validation, analysis, and reporting.
It stands out for its emphasis on traceability and internal control, which simplifies audits and ensures consistency in sustainability disclosures.
Main advantages:
Emitwise is a platform specialized in emissions management and supply-chain visibility, focusing on Scope 3 measurement and compliance with SDR or CSRD regulations.
Its goal is to provide transparency over indirect emissions and enable better-informed decisions.
Through its calculation engine and traceability features, it links emissions to suppliers and categories, automatically generating reports ready for official sustainability disclosures.
Main advantages:
Together, these solutions offer different levels of depth and specialization, but they all share the same goal: helping companies comply with SDR regulations through digitalization, automation, and traceability of ESG data.
The SDR (Sustainability Disclosure Requirements) is the new regulatory framework developed by the UK Financial Conduct Authority (FCA) to standardize how investment products with sustainability objectives are communicated and labeled.
Its purpose is clear: to prevent greenwashing and provide investors with reliable, comparable, and verifiable information on each fund or entity’s ESG commitments.
In practice, SDR requires asset managers and distributors to classify their products using defined criteria, establishing official labels that objectively describe the type of sustainable strategy they follow.
This directly affects how financial products are named, promoted, and reported, raising the bar for transparency and traceability.
From our perspective, this regulation not only affects the financial sector but also sets a global trend toward standardized ESG reporting, reinforcing the need for robust systems for data collection, control, and analysis.
Without a reliable information base, it is impossible to coherently demonstrate what is being communicated to the market.
For us, the SDR represents an opportunity: automating and digitizing ESG traceability becomes a competitive advantage.
Those who manage their data in a structured way will find it easier to adapt not only to SDR, but also to CSRD, Taxonomy, or any future regulatory framework.
An essential reference when aligning ESG commitments with measurable targets is the SBTI, which provides science-based pathways for emissions reduction and long-term sustainability goals consistent with SDR expectations.
The implementation of SDR has been planned in stages between 2024 and 2025, with different phases covering labeling, naming rules, and disclosure obligations.
The anti-greenwashing rule has been in force since May 2024, applying to all entities regulated by the FCA.
This rule requires that all sustainability claims be fair, clear, and not misleading, meaning each message or indicator must be backed by documented evidence.
Starting in July 2024, UK-based asset managers can voluntarily apply SDR labels, classifying their funds into four categories: Sustainability Focus, Sustainability Improvers, Sustainability Impact, and Sustainability Mixed Goals.
Each label must be accompanied by detailed documentation, metrics, and measurable objectives.
The second major phase began in December 2024, when the rules on naming, marketing, and reporting came into force, with gradual adoption continuing through 2025.
During this period, companies must adapt their marketing materials, product sheets, and public reports to reflect the new structure and terminology approved by the FCA.
Throughout 2025, the British regulator will continue fine-tuning the framework and publishing additional guidance to help asset managers and distributors adjust, especially regarding consistency between internal data and public reporting.
In summary, SDR has become a key standard within the sustainable reporting ecosystem.
It demands precision, traceability, and consistency, and complying with it requires a technological infrastructure capable of automating data capture, validation, and publication, ensuring that everything communicated is supported by real, verifiable information.
The SDR framework establishes four official labels for investment products with sustainability goals: Sustainability Focus, Sustainability Improvers, Sustainability Impact, and Sustainability Mixed Goals.
Each defines a specific strategy type and requires measurable evidence of alignment with declared ESG objectives.
To use one of these labels, products must demonstrate that at least 70% of their assets are aligned with the stated sustainability purpose.
This demands precise control over fund composition, methodology, and data traceability.
In practice, this means having automated monitoring and verification processes to ensure criteria are met over time.
The FCA has set specific rules regarding naming and commercial communication, aiming to avoid misleading terms or unverifiable claims.
A product without an SDR label cannot include words such as “sustainable,” “green,” or “impact” in its name unless it can justify them with technical documentation.
These rules require companies to review all promotional materials, data sheets, and public descriptions, ensuring that every claim is backed by real data and internal approvals.
Consistency between naming, evidence, and ESG strategy is essential to avoid noncompliance and penalties.
The regulation defines two standardized disclosure levels:
Both documents must be updated periodically and reflect any progress or changes in the sustainability strategy.
Having version-controlled templates, change tracking, and content traceability ensures consistency between consumer-facing information and the technical documentation behind it.
Since May 2024, the anti-greenwashing rule applies to all entities under FCA supervision.
It requires that all sustainability statements be fair, clear, and not misleading, both in technical documentation and public communications.
To comply, organizations must maintain a direct link between claims and documented evidence, ensuring that each statement is verified and traceable.
This prevents misinterpretation and strengthens credibility with investors and regulators.
An SDR software solution enables automatic assessment of label eligibility, calculating the percentage of aligned investments and verifying compliance with the minimum 70% threshold.
It also documents data sources and provides traceability, avoiding manual errors or inconsistencies.
The software allows each sustainability claim to be registered and linked to its supporting evidence, creating review and approval workflows.
This ensures all claims are auditable, complying with anti-greenwashing requirements and reducing reputational risk.
A specialized system can automate the creation of both consumer sheets and detailed disclosure reports, applying version control, internal validations, and update alerts.
This maintains coherence across report versions and guarantees full traceability of the content.
The system can monitor marketing materials and corporate documentation, verifying that all terms comply with FCA naming rules.
Approval workflows and compliance alerts help detect any deviation before publication.
One of the main advantages of SDR software is its ability to interoperate with other regulatory frameworks such as SFDR and CSRD.
This allows companies to reuse the same ESG data across different reports, eliminating duplication and ensuring consistency across jurisdictions and aligning with broader sustainable finance frameworks.
Overall, SDR software provides control, traceability, and efficiency throughout the compliance process.
By digitizing reporting management, organizations can save time, reduce errors, and respond quickly to new regulatory demands without losing accuracy or coherence.
Managing SDR compliance without a dedicated tool means facing challenges that go far beyond preparing reports.
The Financial Conduct Authority (FCA) requires traceability, evidence control, and consistency between what is communicated and what is actually managed.
Doing this manually or through spreadsheets multiplies the risks and slows down the process.
The first major challenge is maintaining coherence between strategy, portfolio, and messaging. When ESG information is managed in a fragmented way, it becomes very easy for financial data, sustainability objectives, and marketing communications to become misaligned.
This can lead to contradictions or inconsistencies between what is published and what the FCA requires to be backed by evidence.
Another recurring issue is the difficulty in controlling regulatory risk. The SDR includes strict rules for labels, naming, and claims.
Without a centralized system verifying each element, companies are exposed to compliance errors, misinterpretations, and potential sanctions.
In addition, manual work often leads to excessive time consumption in legal and compliance reviews.
Every document, communication, or report must go through several teams and approval rounds, creating bottlenecks and delays if there is no automated validation workflow.
The lack of traceability of evidence is also a critical problem. The FCA requires that each piece of data be demonstrable and linked to its origin.
Without a system that archives, links, and versions all evidence, it becomes nearly impossible to maintain the level of documentation control required.
Finally, adapting to regulatory updates from the FCA poses an ongoing challenge.
The SDR evolves over time, with new guidance and technical adjustments being published.
Without a digital environment that automatically reflects these updates, companies are forced to manually rebuild processes, increasing the risk of misalignment.
Having specialized software for SDR turns a complex compliance process into an automated and traceable workflow, aligning strategy, data, and reporting in a single environment.
A centralized system ensures that ESG information, assigned labels, and public materials remain synchronized.
This avoids contradictions and ensures that the company’s sustainability narrative is consistent with its real product structure.
By automating validations and pre-checks, the software helps detect deviations before they reach the FCA or the public.
This reduces human error and maintains complete traceability of the compliance process.
The system provides automated approval flows, integrating legal, compliance, and communications teams in one environment.
This shortens review cycles and avoids delays caused by duplicate tasks or unstructured processes.
All information is recorded, versioned, and linked to its original sources, making both internal and external audits easier.
In case of inspection or regulatory request, each claim or indicator can be demonstrated with verifiable documentation.
A digital environment ensures that all regulatory requirements remain up to date, automatically adapting templates, ratios, and labels according to new FCA guidelines.
This avoids rework and guarantees that the company remains compliant without interruption.
In summary, implementing SDR software not only ensures compliance but also enhances efficiency, transparency, and response capability.
It allows organizations to move from a reactive approach to a strategic one, where ESG management becomes a real tool for competitiveness and governance control.
A robust SDR software goes beyond simply generating reports.
Its true value lies in structuring ESG management so that the company gains control, traceability, and efficiency, transforming compliance into a strategic advantage.
The goal is for data to flow coherently, remain up to date, and be reusable across different regulatory frameworks.
The eligibility evaluation for SDR labels is one of the most critical components.
The system must automatically calculate whether a product meets the 70% threshold of assets aligned with its declared sustainability objective.
It must also maintain a continuous record showing how this ratio is calculated and updated over time.
This avoids calculation errors and facilitates FCA reviews with solid evidence.
Any SDR-oriented tool must include internal controls ensuring that all sustainability claims are verified, approved, and archived.
Each claim should be linked to its documented evidence, supported by a review workflow connecting ESG, compliance, and communications teams.
This ensures alignment with the anti-greenwashing rule, guaranteeing that every statement is technically supported and fully traceable.
The software should provide customizable templates for both levels of disclosure required by the FCA:
These templates must be versionable, include commenting features, and allow internal approval before automatic report generation.
Having structured approval workflows prevents delays and keeps all communications consistent with official reports.
A strong SDR reporting system must connect seamlessly to the company’s internal data sources, from financial databases to ESG indicators and portfolio records.
This enables automated data extraction, reduces manual work, and ensures that reported values accurately reflect reality.
The fewer manual steps, the more reliable and auditable the data becomes.
Today, ESG data is rarely used for one framework alone.
That is why SDR software should be interoperable with SFDR and CSRD, enabling data reuse without duplicating efforts.
It should also include a data governance layer, with defined roles, traceability, and quality controls.
This ensures reports are consistent, auditable, and valid across multiple jurisdictions.
Complying with SDR should not be seen as a burden but as an opportunity to professionalize ESG management and gain competitive edge.
When data is well structured and automated, organizations can respond faster to regulatory demands and prove with evidence what they communicate to the market.
Traceability, consistency, and data interoperability are becoming key factors of competitiveness.
A company that measures, manages, and reports systematically not only complies with the FCA but also strengthens its reputation and attracts investors, partners, and clients.
An effective SDR software allows companies to shift from a reactive view to a strategic management model, controlling data, anticipating regulatory changes, and consolidating sustainability as a real lever for growth and business efficiency.
Adopting SDR software is not just about installing a tool; it is about aligning strategy, processes, and ESG data within a structured and traceable framework.
The goal is to make technology work for the company, reducing manual workload and ensuring that every public message is supported by real data.
The first step is to analyze your product portfolio and its connection to the company’s ESG objectives.
It is essential to identify which products can qualify for an SDR label and how they align with the corporate sustainability strategy.
This exercise provides a solid base for connecting business and regulatory criteria, avoiding future inconsistencies.
It is equally important to determine which financial, environmental, and social data must be collected, and from which internal or external sources.
The clearer the data structure, the easier it will be to integrate it into the software and automate monitoring.
Choosing the appropriate SDR label must be based on objective evidence, not on marketing aspirations.
Before assigning a category, it is advisable to run an eligibility test verifying compliance with the minimum 70% alignment requirement.
SDR software simplifies this analysis automatically, calculating ratios and documenting justifications.
This guarantees coherence between strategy, portfolio, and communication, minimizing regulatory risk.
A key step in preparation is defining how sustainability claims will be reviewed and approved.
Each statement must have its associated evidence and go through a controlled validation process.
Implementing structured and traceable review flows maintains control over marketing materials, reports, and product sheets, preventing contradictions and ensuring compliance with the anti-greenwashing rule.
SDR compliance requires the creation and continuous updating of two document types: the consumer sheet and the detailed disclosure pack.
Well-deployed software should automate these templates, enabling version control, approval, and publication from a single interface.
It should also include internal controls ensuring data traceability, from its origin to the final report.
This reduces manual errors, speeds up compliance review, and provides security during audits or FCA inspections.
SDR is a dynamic regulation, constantly evolving with new guidance and interpretations.
To remain compliant, companies must plan regular reviews and ensure that teams receive training on the latest updates.
An effective approach combines automation and internal education: the software adapts templates and calculations, while teams gain the knowledge to manage ESG information responsibly.
Preparing for SDR implementation means treating ESG data as a strategic asset, not as an administrative burden.
The sooner companies consolidate data control, the easier it will be to adapt to future regulations and leverage sustainability as a true competitive advantage.
In a context where regulations are multiplying and deadlines are getting shorter, Dcycle emerges as an ESG solution designed for any use case, from SDR reporting to CSRD, SFDR, EU Taxonomy, or ISO standards.
We are not auditors or consultants; we are a SaaS platform built to automate the collection, normalization, and distribution of the ESG data your company already generates, connecting it to all regulatory frameworks without manual effort.
With Dcycle, we centralize all ESG information within a single environment.
We collect data from multiple internal sources, normalize it to ensure consistency, and distribute it automatically across different use cases — such as SDR reports, CSRD templates, or SFDR disclosures.
This ensures data coherence and drastically reduces administrative workload, allowing every metric and figure to be audit-ready at all times.
Our platform enables companies to orchestrate the entire evidence and approval cycle, from the creation of a claim to its final validation.
Every communication or reported figure is linked to its supporting documentation, maintaining a complete record of reviews, versions, and approvals.
This guarantees full traceability and eliminates risks related to the anti-greenwashing rule, which demands consistency and documented proof behind every message.
The system includes configurable templates for SDR and CSRD reports, equipped with automatic naming and marketing controls.
This means that every term, label, or message is validated before publication, ensuring internal coherence between product strategy and corporate ESG communication.
In addition, approval workflows guarantee that no document is published without validation from the appropriate stakeholders.
Dcycle connects directly to financial and operational systems to automatically assess the 70% asset eligibility required by SDR regulations.
The calculation is performed with complete traceability and documented for future reviews.
This allows companies to save time, avoid errors, and maintain consistency between strategy, portfolio, and ESG objectives — without relying on spreadsheets or manual processes.
The entire system is based on a solid data governance model, ensuring control, security, and traceability at every step of the ESG data flow.
Each indicator can be traced back to its origin, every approval is logged, and every change is documented.
This provides a complete end-to-end audit trail, ready for regulatory or internal reviews.
With Dcycle, we turn compliance into an advantage.
We automate ESG management, reduce operational workload, and improve data quality, helping companies transform sustainability into a true strategic lever.
Because measuring, controlling, and reporting with precision is not just about compliance — it’s about progress, resilience, and competitiveness.
The SDR (Sustainability Disclosure Requirements) is the UK regulatory framework that defines how financial products with sustainability goals must be labeled, named, and communicated.
Its purpose is to ensure transparency and prevent greenwashing, establishing a system of official labels, naming rules, and disclosure obligations.
It primarily applies to asset managers and distributors marketing investment products in the United Kingdom, but it also affects companies providing ESG data to these funds.
Any organization seeking to demonstrate traceability and consistency in its ESG indicators should consider SDR requirements, especially if it works with UK investors or is listed on the UK market.
The anti-greenwashing rule has been effective since May 2024, applying to all entities regulated by the FCA.
It requires that all sustainability-related statements be fair, clear, and verifiable, both in official reports and marketing materials.
The SDR labels — Sustainability Focus, Sustainability Improvers, Sustainability Impact, and Sustainability Mixed Goals — became voluntarily available for UK asset managers starting in July 2024.
Meanwhile, the naming and disclosure requirements entered into force in December 2024, with a progressive rollout throughout 2025, according to FCA guidance updates.
The FCA requires that any product carrying an SDR label must have at least 70% of its assets invested in line with the declared sustainability objective.
This means conducting an eligibility and traceability analysis of all assets to verify that they meet the specific criteria of the assigned label.
A specialized software like Dcycle can automatically calculate this ratio and update it in real time as portfolio positions or ESG data change.
This continuous control guarantees alignment between strategy, holdings, and public communication, helping prevent compliance breaches.
The SDR regulation requires two standardized levels of documentation:
Both must be kept up to date and versioned, ensuring that any change in composition, strategy, or results is reflected in the latest version.
Having automated templates and approval workflows ensures that all versions are aligned with real data and approved internally before publication.
The most efficient way is to work from a single, centralized ESG database.
This enables the information collected for SDR reporting to be reused for other frameworks such as SFDR and CSRD, reducing effort and ensuring cross-jurisdictional consistency.
When data is well structured and traceable, reports can be adapted to multiple regulatory formats without reprocessing, ensuring alignment of indicators, methodologies, and evidence.
Thus, complying with SDR becomes part of a global ESG data strategy, making sustainability reporting more efficient and strategically integrated.
Even though the SDR is a UK regulation, it is rapidly becoming a reference model for ESG transparency worldwide.
Its approach, centered on labels, measurable objectives, and anti-greenwashing controls, is being studied and mirrored by other regulators in Europe, Asia, and Australia.
Many asset managers operating internationally already apply SDR-style processes to align their marketing claims and reporting structures globally.
This convergence makes interoperable ESG software crucial, as it allows companies to adapt once and remain compliant across multiple jurisdictions.
The SDR complements the CSRD (Corporate Sustainability Reporting Directive) and the ISSB standards by focusing on financial products rather than corporate entities.
While CSRD governs how companies disclose sustainability data, SDR governs how financial institutions use and communicate that data in investment products.
Both frameworks share the same principles: transparency, traceability, and evidence-based reporting.
Companies that already apply CSRD or ESRS reporting will find the transition to SDR much smoother, especially if they use a platform that ensures data interoperability and XBRL-ready structures.
Non-compliance with SDR can lead to regulatory penalties, market restrictions, or reputational damage.
The FCA has explicitly stated that greenwashing or false sustainability claims will be treated as serious violations, subject to investigation and public disclosure.
Beyond fines, failing to meet SDR expectations can result in loss of investor confidence, reduced access to capital, and market exclusion from sustainability-focused funds.
Because manual ESG management is no longer sustainable under the new reporting demands.
With SDR, companies must demonstrate data consistency, traceable evidence, and auditable approvals across multiple departments.
Automation ensures that data flows seamlessly, validations are continuous, and reports remain aligned with the latest regulatory templates.
It also enables real-time monitoring, alert systems, and continuous improvement cycles, turning compliance into a proactive, data-driven process.
Yes. Dcycle is designed to integrate directly with a company’s financial, operational, and ESG systems, through native APIs or custom connectors.
It can pull data from ERP, CRM, BI platforms, or sustainability databases, ensuring that ESG indicators reflect the real operational performance.
This integration capability eliminates silos and enables a single source of truth for all sustainability reporting needs.
Dcycle serves a broad range of mid-market companies across Spain, Portugal, and Italy, as well as expanding into Germany and the UK.
Its flexible architecture adapts to organizations that need to automate ESG reporting without building complex internal infrastructures.
From industrial and financial firms to tech and service companies, any business required to report sustainability data can benefit from Dcycle’s automated workflows and regulatory alignment features.
Because transparency and credibility are now competitive factors.
Companies that can demonstrate evidence-backed sustainability claims gain investor trust, operational efficiency, and brand strength.
The digital transformation of ESG management enables them to turn compliance into performance, making sustainability a measurable business asset.
With tools like Dcycle, SDR reporting becomes simpler, faster, and strategically aligned, turning regulatory requirements into a driver of innovation and value creation.
Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.
The most recognized methodologies are:
Digital tools like Dcycle simplify the process, providing accurate and actionable insights.
Some strategies require initial investment, but long-term benefits outweigh costs.
Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.
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