ESG for Software Development Agencies: What Tech Clients Are Asking
Whether you’re a small software development agency, a product studio, or a nearshore tech partner, ESG questions from clients are becoming more common. Some of your clients report under CSRD directly; others apply similar standards voluntarily across their supplier base.
Either way, software agencies are increasingly expected to explain how they work responsibly, not just what they deliver. This guide focuses on the ESG topics tech clients actually ask about—diversity, ethical coding, Green IT practices, and remote work—rather than generic IT reporting.
Why Tech Clients Are Asking ESG Questions
Under CSRD, large companies must understand risks and impacts across their value chains. For software development agencies, the focus is not factories or logistics, but people, governance, and digital sustainability.
Common triggers for ESG questions include:
- Enterprise procurement and RFP processes
- Vendor renewals or framework agreements
- Investor or audit-driven supplier reviews
Many agencies encounter this through supplier questionnaires, as outlined in CSRD supplier requirements: what small businesses should expect in 2025.
Diversity and Workforce Metrics Clients Expect
Workforce topics are often the first ESG area tech clients review.
Typical questions include:
- Team size and structure
- Gender diversity (overall and leadership)
- Inclusion policies or initiatives
Clients rarely expect perfect ratios. What matters is:
- Transparency
- Consistent tracking year-on-year
- Willingness to explain context
Even simple headcount tables and narrative explanations usually meet expectations. Broader workforce disclosure principles are covered in the own workforce topic hub.
Ethical Coding and Responsible Development Practices
Ethical coding is becoming a clear ESG topic for software agencies.
Clients may ask about:
- Secure coding standards
- Bias or fairness considerations in algorithms
- Human oversight of automated systems
- Responsible use of AI or data
Good practice does not require complex frameworks. A short internal statement explaining how ethical risks are identified and managed is often sufficient, especially for small teams.
Green IT and Sustainable Development Operations
“Green IT” is increasingly used as shorthand for how software is designed and delivered responsibly.
Common discussion points include:
- Efficient code and resource use
- Avoiding unnecessary data processing
- Awareness of cloud and infrastructure impacts
Agencies are not expected to measure server-level energy use. Instead, clients look for intentional choices and basic awareness of digital environmental impacts. For more detail on energy-related disclosures, see the energy & GHG emissions topic hub.
Remote Work and Carbon Footprint
Remote and hybrid work is common across software agencies and often viewed positively from a sustainability perspective.
Typical disclosures include:
- Percentage of remote or hybrid staff
- Reduced commuting and office space
- Travel policies for client work
Narrative explanations are usually enough. Overly detailed carbon calculations are rarely required at this stage.
Building Credibility with Enterprise Clients
For software agencies, ESG credibility comes from consistency, not volume of data.
Effective approaches include:
- Reusing the same ESG answers across clients
- Keeping short, clear documentation
- Updating information annually
Many agencies align loosely with CSRD or VSME language to make responses easier for clients to integrate. A broader introduction to this approach is available in CSRD for SMEs: the complete 2025 guide.
What Clients Usually Don’t Expect
It’s equally important to know what is not expected.
Most tech clients do not expect:
- Full carbon footprints
- Complex ESG software tools
- External assurance or consultants
Over-reporting can create unnecessary work without improving credibility.
Frequently Asked Questions
Do small software agencies need formal ESG policies?
Not always. Simple written statements covering workforce practices, ethics, and responsible development usually meet client expectations, especially for teams under 50 people.
Are diversity targets required?
No. Clients typically want transparency, not targets. Explaining current figures and any initiatives is sufficient.
Is Green IT reporting mandatory?
There is no standalone Green IT requirement under CSRD. However, explaining how digital sustainability is considered strengthens your ESG narrative with tech clients.
Can we manage this without dedicated ESG staff?
Yes. Most software agencies manage ESG responses alongside existing HR and operations work. The key is clear documentation, not dedicated roles.
Key Terms
- CSRD – Corporate Sustainability Reporting Directive
- ESG – Environmental, social, and governance
- Green IT – Environmentally responsible use of digital technologies
- Own workforce – Employees and contractors delivering services
- Business conduct – Ethics, integrity, and responsible practices
Next Steps for Software Agencies
Start by reviewing the ESG questions you already receive from clients. Document your workforce data, ethical development practices, and remote work approach in plain language. Keep everything in one place and update it once a year.
With a clear and proportionate approach, ESG becomes a credibility asset for software agencies—supporting client trust and long-term partnerships without adding unnecessary complexity.