Report Overview
Global ESG Reporting Software market size was USD 778.454 million in 2023 and the market is projected to touch USD 1,959.63 million by 2030, at a CAGR of 14.10 % during the forecast period. The Global Environmental, Social, and Governance (ESG) Reporting Software Market refers to the sector that provides software solutions to help businesses and organizations manage, track, and report their ESG performance and compliance. ESG reporting is a crucial aspect for companies to measure their impact on environmental sustainability, social responsibility, and corporate governance. These software solutions assist businesses in collecting data, analyzing ESG metrics, and generating reports that adhere to regulatory standards and industry frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD). ESG reporting software plays an essential role in enabling businesses to disclose their sustainability efforts, attract investors, improve their reputation, and align with increasingly stringent government regulations and industry standards. As sustainability becomes a major focus for both governments and consumers, the demand for such software is growing rapidly, driving innovation and competition in this market.
Global ESG Reporting Software Market report scope and segmentation.
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Report Attribute |
Details |
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Base Year |
2022 |
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Forecast Years |
2023 – 2030 |
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Estimated Market Value (2023) |
USD 778.454 Million |
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Projected Market Value (2030) |
USD 1,959.63 Million |
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Segments Covered |
By Component, By Deployment type, By Organization Size, By Vertical, & By Region. |
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Forecast Units |
Value (USD Million or Billion) |
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Regions Covered |
North America, Europe, Asia Pacific, Rest of the World (Latin America, and Middle East & Africa) |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, among others. |
Global ESG Reporting Software Market dynamics
ESG, which stands for Environmental, Social, and Governance, has become a critical focus for businesses and investors in recent years. ESG reporting software plays a pivotal role in helping organizations effectively track, measure, and communicate their ESG performance to stakeholders. This software provides a comprehensive platform for collecting and analyzing data related to a company's environmental impact, social responsibility, and governance practices. Environmental aspects encompass areas like carbon emissions, energy consumption, water usage, and waste management. Social factors include workforce diversity, labor practices, community engagement, and product safety. Governance, on the other hand, delves into topics such as board composition, executive compensation, and overall corporate governance structure.
ESG reporting software allows companies to gather data from various sources, including internal operations, supply chain partners, and external databases, and then collate and analyze this information to generate detailed ESG reports. These reports are not only essential for regulatory compliance and transparency but are also a means of demonstrating a company's commitment to sustainability and responsible business practices. The benefits of ESG reporting software extend beyond mere compliance. It helps companies identify areas for improvement, set targets for sustainability goals, and benchmark their performance against industry peers. This data-driven approach aids in making informed decisions, enhancing corporate reputation, attracting socially responsible investors, and mitigating risks associated with ESG issues. Moreover, ESG reporting software enables businesses to engage with various stakeholders, such as investors, customers, and employees, by providing them with transparent and credible information about the company's ESG performance. This fosters trust and supports long-term sustainability goals. In a world where sustainability and responsible business practices are increasingly important, ESG reporting software has emerged as an indispensable tool for modern organizations seeking to thrive in the global marketplace.
Global ESG Reporting Software Market
- Drivers:
Consistent growth in corporate data volume
The global ESG (Environmental, Social, and Governance) Reporting Software Market is experiencing significant growth, with one of the key drivers being the consistent expansion in corporate data volume. In today's increasingly data-driven business landscape, organizations are inundated with vast amounts of information, much of which pertains to their ESG performance and reporting requirements. As companies worldwide recognize the importance of ESG factors in achieving sustainability, regulatory compliance, and maintaining a positive corporate image, the demand for ESG reporting software is on the rise.
The surge in corporate data volume can be attributed to various factors. Firstly, the digital transformation era has brought about a massive increase in data generation, as companies are now collecting and analyzing a myriad of information related to their environmental impact, social responsibility, and governance practices. ESG data encompasses a wide array of metrics, ranging from carbon emissions and water usage to diversity and inclusion statistics, board diversity, and ethical governance practices. The need to track and report on these data points accurately has led to a substantial accumulation of information that requires efficient management and reporting tools.
- Restraints:
Huge initial capital expenditure
Environmental, Social, and Governance (ESG) reporting has gained immense significance in the corporate world as businesses recognize the importance of sustainability and responsible practices. ESG reporting software has become a crucial tool for companies to streamline their ESG data collection, analysis, and disclosure. However, one significant restraint hindering the widespread adoption of ESG reporting software is the substantial initial capital expenditure required to implement and integrate these solutions into an organization's operations.
- Opportunities:
Climate stress testing to gain traction among financial services organizations
The global market for ESG (Environmental, Social, and Governance) Reporting Software is experiencing a notable opportunity as climate stress testing gains momentum within financial services organizations. This trend highlights the increasing importance of ESG factors in the world of investment and risk management. Climate stress testing involves the evaluation of a financial institution's exposure to climate-related risks and its ability to withstand various climate scenarios. It provides financial organizations with valuable insights into how climate change might impact their portfolios, operations, and overall financial stability. As governments, investors, and consumers place a greater emphasis on sustainability, ESG criteria, and climate change, the demand for climate stress testing solutions has grown significantly.
- Challenges:
Turning net-zero pledges into nearby-term action
The global ESG (Environmental, Social, and Governance) Reporting Software market is currently facing a significant challenge in translating net-zero pledges into near-term action. As organizations worldwide commit to ambitious sustainability goals, such as achieving net-zero carbon emissions by a certain target year, the need for effective ESG reporting and monitoring software has never been more critical. However, several key obstacles hinder the smooth transition from these pledges to concrete, actionable steps.
- Segment Overview
By Component: The Global ESG Reporting Software Market is primarily segmented into solutions and services. Solutions include the software platforms that automate and streamline ESG data collection, reporting, and analysis processes. These platforms allow businesses to measure their performance across environmental, social, and governance metrics and produce reports compliant with global standards. Services, on the other hand, include consulting, integration, training, and maintenance services provided by vendors to help businesses optimize their use of ESG reporting tools, ensuring alignment with specific regulatory requirements and sustainability goals.
By Deployment Type: ESG reporting software can be deployed either on-premises or via the cloud. On-premises solutions involve the installation of software on a company's local servers, offering higher levels of control and security. However, these solutions often require more IT resources and maintenance. Cloud-based deployment is increasingly popular due to its scalability, lower upfront costs, and remote accessibility. Cloud solutions are easier to update, offer real-time data processing, and can integrate with other cloud-based tools, making them more flexible for companies of all sizes.
By Organization Size: The market is also divided based on the size of the organization: Small and Medium-sized Enterprises (SMEs) and Large Enterprises. Large enterprises often have more complex ESG needs and regulatory requirements due to their scale, while SMEs may focus on more basic functionalities or cost-effective solutions that can be easily implemented. The growing importance of sustainability across all business sectors is driving both large corporations and smaller businesses to adopt ESG reporting software to manage their sustainability efforts and ensure regulatory compliance.
By Vertical: ESG reporting software is used across various industries or verticals. In the Banking, Financial Services, and Insurance (BFSI) sector, the focus is often on governance and transparency in reporting, as investors demand more sustainability-related disclosures. In IT, companies track their environmental impact and corporate social responsibility (CSR) efforts, while the Government and Public Sector prioritizes compliance with environmental regulations and the promotion of social equity. The Manufacturing sector uses ESG software to track waste management, energy usage, and labor practices. Retail and Consumer Goods companies focus on ethical sourcing and consumer-facing transparency. Healthcare and Life Sciences prioritize social responsibility and environmental impact in their operations. In Energy and Utilities, companies track their environmental footprint and sustainability initiatives. Other Verticals include sectors such as telecommunications, transportation, and agriculture, all of which also have specific ESG concerns related to their operations.
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Global ESG Reporting Software Market Overview by Region
The Global ESG Reporting Software Market is witnessing significant growth across various regions due to rising demand for sustainability and regulatory pressures. In North America, particularly in the United States, there is a high adoption rate due to stringent regulations such as the SEC's increased focus on ESG disclosures. The region also sees strong demand from large corporations that are incorporating ESG metrics into their core business strategies. Europe is another major market, driven by the European Union's regulatory initiatives such as the Corporate Sustainability Reporting Directive (CSRD) and the European Green Deal, which mandate increased transparency in corporate sustainability practices. In Asia-Pacific, countries like Japan, China, and India are starting to prioritize ESG factors, especially in response to growing environmental concerns and the rise of corporate social responsibility. While Latin America and Middle East & Africa have lower adoption rates, there is an increasing interest in ESG reporting driven by investor pressure and the need for companies to align with global sustainability trends. Regional variations in regulatory requirements, market maturity, and corporate governance practices influence the pace of adoption, with North America and Europe leading the market while other regions are catching up.
Global ESG Reporting Software market competitive landscape
The Global ESG Reporting Software Market is highly competitive, with key players offering innovative solutions to meet growing demand for sustainability and transparency. Normative focuses on carbon footprint automation, while Salesforce integrates ESG reporting into its CRM platform for businesses to track both customer data and sustainability metrics. Wolters Kluwer N.V. offers solutions geared towards regulatory compliance in financial services, while PwC provides consulting alongside reporting services, helping businesses navigate global ESG regulations. Workiva offers a user-friendly cloud platform for automating ESG data collection and reporting, while London Stock Exchange Group helps businesses disclose ESG data to investors. Diligent Corporation empowers corporate boards to oversee ESG initiatives, and Sphera specializes in environmental performance management. Other notable players include Cority, Industrial Scientific, Novisto, Nasdaq, Greenomy, Emex Software, and Plan A, each providing unique ESG reporting tools tailored to various industries and regulatory needs.
Global ESG Reporting Software Market Recent Developments
- December 2022, Wolters Kluwers teamed up with Caixa Geral de Depositos (CGD), a Portuguese state-owned banking corporation. Following this collaboration, CGD selected OneSumX software, Wolters Kluwer Finance, Risk and Regulatory Reporting’s (FRRs) for regulatory reporting obligations. This solution enables the former corporation to comply with central registration depository directives and capital requirement regulations.
- March 2023, PwC and Sphera joined forces to hasten the expansion of their market leading ESG management platform. By combining their technology and strategy consulting strengths, Sphera and PwC hope to rapidly grow their customer base, increase adoption of the Sphera platform's features, and build a more robust ESG digital ecosystem for their clients.
- December 2022, Workiva announced its partnership with Watershed, the enterprise climate platform. The partnership focuses on delivering a unified solution for consolidated, audit-grade carbon emissions reporting to joint customers. Watershed complements Workiva's ESG reporting platform by enabling joint customers to add Watershed's carbon data into Workiva. Therefore, Workiva's integrated reporting platform organizes the processes and integrated teams and data for allowing investor-grade, audit-ready reporting.
- December 2022, Refinitiv, a London Stock Exchange Group business announced a collaboration with Clarity AI, a sustainable data company. The collaboration aims to create a tool for reporting in line with the Sustainable Finance Disclosure Regulation (SFDR). The SFDR Reporting Professional features combined capabilities utilizing market-leading data coverage of more than 50,000 companies. It is complemented by LSEG’s comprehensive range of reported data on ESG, fundamentals, funds, and sovereigns
Global ESG Reporting Software report market segmentation
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By Component |
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By Deployment type |
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By Organization Size |
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By Vertical |
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Customization Scope |
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Pricing |
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