PUBLISHER: The Business Research Company | PRODUCT CODE: 1619565
PUBLISHER: The Business Research Company | PRODUCT CODE: 1619565
Environmental, social, and governance (ESG) rating services involve specialized agencies and organizations that evaluate and score companies based on their ESG practices. These ratings offer investors standardized assessments of a company's ESG performance, assisting them in making informed investment decisions that align with sustainability and ethical standards.
The main categories in the ESG rating services market include addressing ESG expectations, preparing ESG reports, assuring ESG data, communicating ESG strategy, and others. Addressing ESG expectations involves integrating ESG principles into company operations and decision-making processes. The market serves various organization sizes, including large enterprises and small and medium enterprises (SMEs), and covers applications across sectors such as the financial industry, consumer and retail, industrial manufacturing, energy and natural resources, real estate, and more.
The ESG rating services market research report is one of a series of new reports from The Business Research Company that provides ESG rating services market statistics, including the ESG rating services industry global market size, regional shares, competitors with ESG rating services market share, detailed ESG rating services market segments, market trends, and opportunities, and any further data you may need to thrive in the ESG rating services industry. These ESG rating services market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The ESG rating services market size has grown rapidly in recent years. It will grow from $9.98 billion in 2023 to $11.06 billion in 2024 at a compound annual growth rate (CAGR) of 10.9%. The growth during the historic period can be attributed to increased corporate transparency, a surge in sustainable development goals, heightened public awareness, changing consumer preferences, and greater investor scrutiny.
The ESG rating services market size is expected to see rapid growth in the next few years. It will grow to $16.83 billion in 2028 at a compound annual growth rate (CAGR) of 11.1%. The anticipated growth during the forecast period can be attributed to rising climate change policies, economic incentives for companies, a focus on transparency in supply chains, the growth of sustainability-linked loans, and increasing reliance on environmental impact assessments. Key trends expected to influence this period include the adoption of green technologies, innovation in ESG metrics, implementation of circular economy models, digital transformation initiatives, and real-time ESG monitoring.
The growing awareness of climate change is expected to drive the growth of the ESG (Environmental, Social, and Governance) rating services market in the future. As evidence of climate change impacts, such as extreme weather events and environmental degradation, continues to rise, along with widespread media coverage and advocacy, awareness is increasing globally. This heightened focus on climate change boosts the demand for ESG rating services by emphasizing environmental sustainability and risk management, prompting companies to assess their climate-related performance and resilience strategies. For example, in December 2022, the UK Parliament's House of Commons Library reported that 74% of the British population expressed being very or extremely concerned about climate change, up from 45% in 2021. As a result, growing climate change awareness is fueling the expansion of the ESG rating services market.
Leading companies in the ESG rating services market are increasingly developing AI-enabled platforms to improve the accuracy and efficiency of ESG assessments, streamline data analysis, and offer more actionable insights for investors and stakeholders. These platforms leverage AI to automate the analysis of large data sets, delivering precise, real-time assessments and actionable insights on environmental, social, and governance factors. For instance, in February 2022, ERM, a UK-based consulting firm, introduced ESG Fusion. This AI-driven platform offers rapid, customized ESG ratings for privately-owned companies, helping investors make informed decisions with current insights. ESG Fusion integrates real-time data and expert analysis to facilitate ESG due diligence and performance measurement.
In September 2022, ACA Group, a US-based provider of a comprehensive suite of GRC (Governance, Risk, and Compliance) solutions to the financial services industry, acquired Ethos ESG for an undisclosed amount. This acquisition enables ACA Group to expand its offerings by providing robust ESG solutions, leveraging data to assist firms in mitigating risks, making informed decisions, and tackling greenwashing. Ethos ESG, a US-based provider of ESG ratings and analytics for financial advisors, complements ACA's portfolio with its specialized expertise in environmental, social, and governance criteria.
Major companies operating in the environmental, social and governance (ESG) rating services market are Deloitte Touche Tohmatsu Limited, PricewaterhouseCoopers International Limited, Ernst & Young Global Limited, KPMG International Limited, S&P Global Inc., Deutsche Borse AG, Thomson Reuters Corporation, LSEG Data & Analytics, Bureau Veritas, Moody's Corporation, UL LLC, MSCI Inc., Morningstar Inc., CRISIL Limited, EcoVadis Inc., Institutional Shareholder Services Inc., Sustainalytics B.V., Confluence Technologies Inc., US Green Building Council, RepRisk AG, Vigeo Eiris, Clarity AI Inc., Arabesque S-Ray GmbH, Truvalue Labs Inc.
North America was the largest region in the ESG rating services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the environmental, social and governance (ESG) rating services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the environmental, social and governance (ESG) rating services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The ESG rating services market includes revenues earned by entities by providing services such as comprehensive ESG data collection, analysis, and reporting, as well as benchmarking companies against industry standards. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Environmental, Social And Governance (ESG) Rating Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on environmental, social and governance (ESG) rating services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for environmental, social and governance (ESG) rating services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The environmental, social and governance (ESG) rating services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.