ESG Software Market Size, Share & Trends Analysis Report By Type, By Organization Size, By Deployment, By Vertical, By Region, And Segment Forecasts, 2024 - 2030

ESG Software Market Size, Share & Trends Analysis Report By Type, By Organization Size, By Deployment, By Vertical, By Region, And Segment Forecasts, 2024 - 2030

ESG Software Market Size & Trends

The global ESG software market size was estimated at USD 940.7 million in 2023 and is expected to grow at a CAGR of 17.3% from 2024 to 2030.The market is experiencing robust growth, driven by increasing regulatory requirements, heightened investor scrutiny, and a growing corporate focus on sustainability and ethical governance. Companies are required to disclose their ESG metrics and demonstrate transparency, prompting the adoption of specialized software that facilitates data collection, reporting, and analysis. In addition, the rising awareness of climate change, social justice issues, and the need for robust corporate governance frameworks further propels the demand for comprehensive ESG solutions that help businesses mitigate risks.

Governments and regulatory bodies around the world are implementing stricter regulations that mandate more detailed and frequent ESG reporting by companies. For instance, on January 5, 2023, the Corporate Sustainability Reporting Directive (CSRD) became effective. This directive ensures that investors and other stakeholders can access crucial information to evaluate the impact of companies on both people and the environment, as well as to identify financial risks and opportunities related to climate change and other sustainability issues. In addition, by standardizing the information that companies must provide, the CSRD aims to reduce reporting costs for companies in the medium to long term. Companies falling under the CSRD's scope are required to report in accordance with the European Sustainability Reporting Standards (ESRS).

The complexity and breadth of ESG regulations necessitate robust software solutions capable of handling large volumes of data and diverse reporting requirements. Companies need to collect data from various sources, including internal operations, supply chains, and external stakeholders, and then process this data into coherent, compliant reports. ESG software platforms streamline this process by offering integrated solutions that automate data collection, ensure accuracy, and provide real-time analytics. This not only helps companies stay compliant but also allows them to identify and mitigate potential risks associated with non-compliance, such as fines, legal liabilities, and reputational damage.

The integration of AI and Big Data is a significant growth driver in the ESG software market, transforming the way companies manage and report their ESG metrics. AI and machine learning algorithms enhance the capabilities of ESG software by automating data collection, improving data accuracy, and enabling advanced analytics. This automation reduces the manual effort involved in gathering ESG data from diverse sources, such as internal reports, third-party audits, and public databases.

By streamlining these processes, AI-driven ESG software saves time and resources and minimizes the risk of human error, ensuring more reliable and consistent ESG reporting. For instance, in October 2023, C3.ai, Inc., an Organization AI application software company, announced a new partnership with ESG Book, a sustainability data and technology company. This collaboration merges C3 AI’s advanced AI-enabled ESG application with ESG Book’s extensive sustainability data suite. Therefore, sustainability teams within enterprises are expected to benefit from enhanced data-driven analytical capabilities.

As the frequency and severity of climate-related events increase, businesses are expected to assess, mitigate, and disclose their exposure to climate risks. ESG software solutions are becoming crucial tools for companies to identify potential climate-related threats to their operations, supply chains, and financial performance. These solutions offer refined modeling and analytics capabilities that enable organizations to simulate various climate scenarios, understand their potential impacts, and develop robust risk mitigation strategies. By integrating climate risk assessments into their broader risk management frameworks, companies can make more informed decisions, protect their assets, and enhance their resilience against climate-related disruptions.

In addition, the process of gathering, verifying, and managing ESG data can be labor-intensive and prone to human error. Automation technologies streamline these tasks, significantly improving efficiency, accuracy, and reliability. Automated systems can continuously collect data from various sources, including IoT devices, corporate databases, and third-party providers, ensuring real-time updates and comprehensive coverage. This automation only reduces the administrative burden on companies and enhances the precision of ESG reporting, which is critical for regulatory compliance and stakeholder trust.

Global ESG Software Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global ESG software market based on type, deployment, organization size, vertical, and region.

• Type Outlook (Revenue, USD Million, 2018 - 2030)
• Environmental Management Software
• Social Management Software
• Governance Management Software
• Others
• Organization Size Outlook (Revenue, USD Million, 2018 - 2030)
• SMEs
• Large Enterprises
• Deployment Outlook (Revenue, USD Million, 2018 - 2030)
• On-premise
• Cloud
• Vertical Outlook (Revenue, USD Million, 2018 - 2030)
• BFSI
• Energy and Utilities
• Manufacturing
• Healthcare
• Retail
• IT and Telecommunications
• Government and Public Sector
• Others
• Regional Outlook (Revenue, USD Million, 2018 - 2030)
• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Latin America
• Brazil
• Middle East & Africa
• Kingdom of Saudi Arabia
• UAE
• South Africa

Please note The report will be delivered in 4-8 business days upon order notification.