ESG Reporting Software Market Forecasts to 2030 - Global Analysis By Component (Software and Services), Deployment Mode (On-Premises and Cloud-Based), Organization Size, End User and By Geography

According to Stratistics MRC, the Global ESG Reporting Software Market is accounted for $0.91 billion in 2024 and is expected to reach $2.50 billion by 2030 growing at a CAGR of 18.4% during the forecast period. ESG Reporting Software is a digital tool designed to help organizations track, measure, and report on their Environmental, Social, and Governance (ESG) performance. It streamlines data collection, analysis, and reporting processes to ensure compliance with regulatory standards and sustainability frameworks, such as GRI, SASB, and TCFD. By providing insights into ESG metrics, the software enables businesses to monitor progress, identify risks, and improve decision-making.

According to the Global Reporting Initiative (GRI), over 8,400 companies across 120 states and regions use the Carbon Disclosure Project (CDP) framework for environmental reporting.

Market Dynamics:

Driver:

Rising consumer demand for sustainability

The growing consumer focus on sustainability has significantly driven the adoption of ESG reporting software. Businesses are increasingly expected to demonstrate their commitment to environmental, social, and governance (ESG) principles to attract eco-conscious consumers. ESG reporting software enables companies to track and disclose their sustainability initiatives, improving transparency and fostering trust. This rising demand aligns with global shifts toward responsible consumption and sustainable business practices, making ESG reporting an essential component of corporate strategies.

Restraint:

Complexity of ESG data collection

The complexity of collecting, aggregating, and standardizing ESG data across diverse sources poses a significant restraint for the market. Companies often face challenges in integrating ESG metrics into existing systems due to varying data formats and inconsistent reporting standards. This can lead to inefficiencies, higher operational costs, and delays in generating accurate reports.

Opportunity:

Growth in non-financial reporting

The increasing emphasis on non-financial reporting presents a lucrative opportunity for the ESG reporting software market. With investors and stakeholders demanding insights beyond financial performance, companies are adopting tools to measure their environmental and social impacts. ESG reporting software facilitates comprehensive non-financial disclosures, enabling organizations to align with global sustainability standards while enhancing their reputations. This trend is expected to drive innovation and the development of advanced solutions tailored to meet evolving stakeholder expectations.

Threat:

Changing regulatory landscape

The rapidly evolving regulatory environment surrounding ESG disclosures poses a significant threat to the market. Frequent updates to regulations require companies to continuously adapt their reporting processes, increasing compliance costs and operational complexities. Additionally, inconsistent regulations across regions can create challenges for multinational corporations.

Covid-19 Impact:

The COVID-19 pandemic accelerated the adoption of ESG reporting software as businesses prioritized sustainability amidst global disruptions. The crisis highlighted the importance of managing environmental and social risks, prompting organizations to enhance transparency through robust ESG disclosures. Additionally, remote work environments increased reliance on digital tools for data collection and analysis, further driving demand for cloud-based ESG software solutions during this period.

The software segment is expected to be the largest during the forecast period

During the forecast period, the software segment is expected to dominate the market due to its ability to automate complex ESG data collection and reporting processes. These solutions provide advanced analytics, real-time monitoring, and customizable dashboards that enable organizations to track their sustainability performance efficiently. The rising demand for scalable and user-friendly tools across industries underscores the segment's significant contribution to market growth.

The energy & utilities segment is expected to have the highest CAGR during the forecast period

During the forecast period, the energy & utilities segment is expected to grow at the highest CAGR as companies in this sector face mounting pressure to reduce carbon emissions and adopt sustainable practices. ESG reporting software helps these organizations monitor environmental metrics such as energy consumption and emissions while ensuring compliance with stringent regulations. This growing need for transparency and accountability drives rapid adoption within the sector.

Region with largest share:

Over the forecast period, the North America region is anticipated to account for the largest share of the ESG reporting software market due to its mature regulatory framework and strong investor focus on sustainability. The U.S., in particular, leads adoption rates as corporations comply with SEC mandates for enhanced ESG disclosures. The region's advanced technological infrastructure further supports widespread implementation of sophisticated reporting tools across various industries.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to register the highest growth rate due to increasing awareness of sustainability issues and supportive government initiatives promoting sustainable development. Countries like China and India are driving demand through regulatory incentives and growing investor interest in responsible business practices. The region's rapid industrialization coupled with a shift toward greener operations makes it a key growth area for ESG software providers.

Key players in the market

Some of the key players in ESG Reporting Software Market include Workiva, Persefoni AI, Novata, Greenly, Watershed, SustainIQ, Benchmark Gensuite, Microsoft Corporation, IBM Corporation, Normative AB, APLANET Solutions, Cority Software Inc., Coolset Inc., Sweep, Sustainalytics, EcoVadis, Enablon and Dcycle.

Key Developments:

In October 2024, Benchmark Gensuite has launched Responsio, an AI-driven platform that manages every stage of disclosure request handling for ESG and EHS data, enhancing efficiency and accuracy in response to increasing regulatory demands.

In June 2024, Workiva has been named a leader in the Verdantix Green Quadrant for ESG Reporting and Data Management Software, and Deloitte has launched new ESG accelerators for the Workiva platform to enhance ESG reporting efficiency and accuracy.

In March 2024, greenly announced that it has raised $52 million in a Series B funding round to enhance its suite of solutions enabling companies to measure and manage their carbon emissions, amidst growing demand for carbon accounting solutions due to new regulations.

In March 2024, Persefoni AI has launched Persefoni Pro; a free tool aimed at enabling businesses to measure and discloses their greenhouse gas emissions, enhancing climate data accuracy and accessibility.

Components Covered:

• Software
• Services

Deployment Modes Covered:

• On-Premises
• Cloud-Based

Organization Sizes Covered:

• Large Enterprises
• Small and Medium-sized Enterprises (SMEs)

End Users Covered:

• Banking, Financial Services, and Insurance (BFSI)
• Government
• Manufacturing
• Food & Beverages
• Retail & Consumer Goods
• Energy & Utilities
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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