ESG Reporting Software Market by Component (Services, Solution), Deployment (On-Cloud, On-Premises), Organization Size, Vertical - Global Forecast 2024-2030

ESG Reporting Software Market by Component (Services, Solution), Deployment (On-Cloud, On-Premises), Organization Size, Vertical - Global Forecast 2024-2030

The ESG Reporting Software Market size was estimated at USD 1.42 billion in 2023 and expected to reach USD 1.62 billion in 2024, at a CAGR 15.38% to reach USD 3.86 billion by 2030.

The ESG reporting software market encompasses digital solutions designed to aid organizations in collecting, analyzing, and reporting on data related to their environmental, social, and governance (ESG) performance. These tools are pivotal for companies seeking to enhance transparency, comply with regulatory requirements, and demonstrate their commitment to sustainable practices to stakeholders. ESG Reporting Software finds its application across many sectors, including finance, manufacturing, energy, and technology. Such tools are essential for any corporation aiming to evaluate its impact on the environment, manage social relationships with employees, suppliers, and customers, ensuring good governance practices. The primary end-users are Corporate Social Responsibility (CSR) teams, compliance officers, and sustainability managers tasked with the reporting and analysis of ESG metrics. The scope of the ESG Reporting Software market is vast, given the increasing global focus on sustainability and responsible investing. Factors boosting the development of this market include stringent EHS regulations laid down by the government, rising prevalence of pollution and associated hazards to health and safety, expanding demand from investors for transparent and accountable ESG reporting, and growing emphasis on sustainability and CSR initiatives across industries. However, the adoption of ESG reporting software is hindered by high implementation and operation costs, difficulties with integration with existing systems, and data quality and standardization issues. On the other hand, integration of AI and Machine Learning for predictive analytics in ESG performance, expansion into emerging markets with burgeoning sustainability mandates, and offering cloud-based ESG reporting solutions for enhanced accessibility and collaboration present potential opportunities for the ESG reporting software market.

Regional Insights

In North America, particularly the United States and Canada, there is a robust adoption of ESG reporting software driven by regulatory changes and a heightened awareness of sustainability issues among investors. The market is characterized by the presence of established players and the emergence of innovative startups. South America is experiencing a growing interest in ESG issues, with Brazil paving the way in software adoption, partly due to increasing international investment requirements. Europe is a significant region in the development of the ESG reporting software market, primarily due to stringent regulatory frameworks and a highly environmentally conscious consumer base. The EU's Sustainable Finance Disclosure Regulation (SFDR) and the Non-Financial Reporting Directive (NFRD) have driven demand for sophisticated ESG reporting solutions. The ESG reporting software market in the Middle East and Africa (MEA) is at a nascent stage; however, it is poised for rapid growth. The increasing emphasis on sustainability, particularly in the Middle East's oil and gas sector, drives interest in ESG reporting. Africa's focus on sustainable development and economic diversification presents untapped opportunities for market expansion. China's ESG reporting landscape is rapidly evolving, with the government implementing stringent regulations to promote sustainable practices. Japan demonstrates a robust commitment to ESG principles, reflected in its stewardship and corporate governance codes. Japanese companies increasingly adopt ESG reporting software to enhance their reporting quality and attract global investors. India's ESG market is in a nascent stage but is expected to grow significantly. With increasing awareness and regulatory push towards sustainability, Indian companies are beginning to see the value in investing in ESG reporting tools for better investor engagement and compliance.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the ESG Reporting Software Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Stringent EHS regulations laid down by the government
Rising prevalence of pollution and associated hazards to health and safety
Growing emphasis on sustainability and CSR initiatives across industries

Market Restraints

High costs of implementation and operation

Market Opportunities

Emergence of AI and blockchain based ESG reporting software
End users investment for optimizing decision-making processes in ESG

Market Challenges

Difficulties with integration with existing systems

Market Segmentation Analysis

Component: Growing penetration of ESG reporting solutions for efficient data collection, management, analysis, and reporting
Vertical: Expanding application of ESG reporting software in IT industry for innovation in sustainability management

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the ESG Reporting Software Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the ESG Reporting Software Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Nasdaq Launches AI-Powered ESG Data Platform

Nasdaq unveiled its platform, Nasdaq Sustainable Lens, designed to empower businesses and investors to efficiently manage and interpret ESG (Environmental, Social, and Governance) data across an extensive network of over 9,000 companies. This innovative AI-powered Software as a Service (SaaS) platform aids in summarizing sustainability-related information, facilitates credible responses to stakeholders' inquiries and allows for comprehensive benchmarking against evolving reporting standards and peer companies.

Greenomy Partners With Swift to Streamline ESG Reporting for Global Financial Institutions

Greenomy forged a pivotal partnership with Swift's global financial communication network, marking a significant advancement in ESG data management and reporting. This strategic alliance aims to empower corporations worldwide by providing a streamlined avenue for measuring, reporting, and disclosing essential ESG metrics to Swift's expansive community, encompassing over 11,500 financial entities.

Cority Acquires Sustainability & ESG Reporting Software Provider, Greenstone

Cority, a provider of Environmental, Health, and Safety (EHS) software, significantly expanded its portfolio with the strategic acquisition of Greenstone, a UK-based software firm known for its innovative sustainability solutions tailored for enterprises, supply chains, and asset managers. This acquisition, following close on the heels of Cority's recent WeSustain and Reporting 21 purchases, underscores the company's committed drive towards enhancing operational and sustainable performance through advanced, people-first software solutions.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the ESG Reporting Software Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the ESG Reporting Software Market, highlighting leading vendors and their innovative profiles. These include Benchmark Digital Partners LLC, Brightest, Inc., Conservice ESG, Cority, Credible Innovations Inc., Dakota Software Corporation, Diligent Corporation, Emex Software Ltd, Fieldguide, Inc., Goodworld Inc., Greenly, HSI APAC PTY LTD, Hyperproof, Inc., International Business Machine Corporation, IsoMetrix Group, LogicGate, Inc., Microsoft Corporation, Novata, Inc., OneTrust, LLC, Onspring Technologies, LLC, Oracle Corporation, SAMETRICA, Sedex Information Exchange Limited, SmartHead Co. s.r.o., StarTex Software LLC, The Social Collective, VelocityEHS Holdings Inc., Wolters Kluwer N.V., and Workiva Inc..

Market Segmentation & Coverage

This research report categorizes the ESG Reporting Software Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component
Services
Consulting Services
Integration & Implementation Services
Solution
ERP Integrated Modules
Standalone ESG Reporting Software
Sustainability Management Platforms
Deployment
On-Cloud
On-Premises
Organization Size
Large Enterprises
Small & Medium Enterprises
Vertical
Banking Financial Services & Insurance
Energy & Utilities
Government & Public Sector
Healthcare & Life Sciences
Information Technology
Retail & Consumer Goods
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

USD 66.98 billion in 2023 and expected to reach

USD 77.89 billion in 2024, at a CAGR 16.90% to reach

USD 199.90 billion by 2030.

Please Note: PDF & Excel + Online Access - 1 Year