ESG Reporting Software Market Research Report Information By Offering (Software (Environmental ESG Reporting Software, Social ESG Reporting Software, Governance ESG Reporting Software) and Services (Consulting, Integration & Deployment, Support & Maintenance)), By Deployment Mode (On-premises and Cloud), By Organization Size (Large Enterprises and SMEs), By Vertical (BFSI, Government, Public Sector & Non-Profit, Manufacturing, Food & Beverages, Retail & Consumer Goods, Energy & Utilities, Other Verticals), And By Region (North America, Euro

ESG Reporting Software Market Overview

The ESG Reporting Software Market size is projected to grow from USD 1.2 billion in 2024 to USD 4.87 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.00% during the forecast period (2024 - 2032). Additionally, the market size for ESG Reporting Software was valued at USD 1.1 billion in 2023.

The increased regulatory requirements, investor and stakeholder demand for transparency, and the need for companies to demonstrate their commitment to sustainability are expected to be significant market drivers for the ESG Reporting Software Market. 

Figure1: ESG Reporting Software Market, 2018 - 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

ESG Reporting Software Market Trends

Market CAGR for ESG Reporting Software is driven by the growing demand for ESG reporting software to navigate and mitigate ESG risks. Effective ESG reporting software plays a crucial role in assisting companies in navigating and mitigating ESG risks, which are increasingly pivotal in today's business landscape. This software enables organizations to identify and monitor diverse ESG risks such as climate change impacts, supply chain disruptions, labor practices, and regulatory compliance. It achieves this through robust data analytics and reporting capabilities. Companies can prioritize and address the most significant ESG risks by conducting comprehensive risk assessments, thereby enhancing resilience and sustainability. According to a 2021 Verdantix survey of 400 senior executives worldwide, a notable percentage highlighted GHG emissions management IT systems as their primary focus. This growing demand indicates a projected surge in the ESG software industry.

Additionally, ESG reporting software facilitates proactive risk management strategies by enabling companies to establish thresholds, benchmarks, and targets for ESG performance metrics. Real-time monitoring and alerts assist organizations in swiftly responding to emerging risks and implementing corrective measures to mitigate potential impacts. This proactive approach helps reduce operational and reputational risks while enhancing long-term business continuity and stakeholder confidence.

As a result, it is anticipated that throughout the projection period, demand for the ESG Reporting Software Market will increase due to the Growing demand for ESG reporting software to navigate and mitigate ESG risks. Thus, driving the ESG Reporting Software Market revenue.

ESG Reporting Software Market Segment Insights

ESG Reporting Software Market Offering Insights

The ESG Reporting Software Market segmentation, based on Offering, includes Software (Environmental ESG Reporting Software, Social ESG Reporting Software, Governance ESG Reporting Software) and Services (Consulting, Integration & Deployment, Support & Maintenance). The Software segment dominated the market, accounting for 58% of market revenue. Investors are increasingly factoring in ESG considerations when making investment decisions. They demand transparent and reliable ESG data to evaluate the sustainability and ethical impact of their investments. ESG reporting software equips companies with the necessary tools to efficiently gather, analyze, and report this data, making it an essential asset for fulfilling investor expectations.

Figure 2: ESG Reporting Software Market, by Offering, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

ESG Reporting Software Market Deployment Mode Insights

The ESG Reporting Software Market segmentation, based on Deployment Mode, includes On-premises and Cloud. The Cloud segment dominated the market, accounting for 58% of market revenue. Cloud-based ESG reporting software is accessible from anywhere with an internet connection, facilitating remote work and collaboration across geographically dispersed teams. This accessibility is especially valuable in today’s increasingly remote and hybrid work environments. Multiple stakeholders can access and work on the same data in real-time, enhancing collaboration and ensuring that all relevant parties have the most current information. This collaborative capability improves the efficiency and accuracy of ESG reporting processes.

ESG Reporting Software Market Organization Size Insights

The ESG Reporting Software Market segmentation, based on Organization Size, includes Large Enterprises and SMEs. The Large Enterprises segment dominated the market, accounting for 60% of market revenue. Large enterprises have a broader and more diverse investor base. Investors increasingly demand transparency and reliable ESG data to evaluate the sustainability and ethical impact of their investments. To meet these expectations and maintain their appeal to potential investors, large enterprises require robust ESG reporting software. Moreover, due to their visibility, large enterprises face greater public and consumer scrutiny regarding their ESG practices. Effective ESG reporting software enables these companies to demonstrate their commitment to sustainability and ethical practices, enhancing their public image and customer loyalty.

ESG Reporting Software Market Vertical Insights

The ESG Reporting Software Market segmentation, based on Vertical, includes BFSI, Government, Public Sector & Non-Profit, Manufacturing, Food & Beverages, Retail & Consumer Goods, Energy & Utilities, and Other Verticals. The Government, Public Sector & Non-Profit segments dominated the market, accounting for 60% of market revenue. Climate change has sparked unprecedented public interest, and sustainability reports enable governments to showcase their progress in reducing emissions. As the largest economic sector in most countries, the public sector significantly impacts the environment. It serves two primary functions: providing essential services such as the armed forces, healthcare, public transportation, and waste collection, all of which contribute to climate change. Additionally, it acts as a regulator and standard setter, establishing an environmental regulatory framework. This dual role means the public sector, alongside private companies, is crucial in achieving net-zero goals.

ESG Reporting Software Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the ESG Reporting Software market in North America can be attributed to several key factors. North America's ESG reporting software market is experiencing significant growth due to regulatory requirements, investor pressure, and stakeholder expectations. Businesses across Canada are increasing their investment in sustainability initiatives, with average annual budget growth expected to rise from 5.6% (2018-2020) to 11.9% (2025-2030). The top two sustainability initiatives pursued by Canadian businesses are energy-oriented and technology-enabled: 77% are using digital tools to enhance operational efficiency, and 62% are generating energy through sustainable means such as solar panels. Companies recognize the importance of ESG reporting for compliance, reputation management, attracting investors, and risk mitigation. Consequently, there is a growing adoption of ESG reporting software across various industries. The market is becoming increasingly competitive, with established software providers and new entrants vying for market share by offering innovative features, user-friendly interfaces, and customizable solutions to meet the diverse needs of companies aiming to enhance their ESG performance and reporting capabilities.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: ESG REPORTING SOFTWARE MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe ESG Reporting Software Market accounts for the second-largest market share as the European companies, especially those listed on major stock exchanges, place a strong emphasis on robust corporate governance practices. According to Vena's Industry Benchmark Report, Europe leads in ESG adoption, with 93% of organizations identifying themselves as users, compared to 79% in North America and 88% in Asia-Pacific. ESG considerations are now pivotal in shaping corporate governance, influencing high-level board decisions and strategic planning. ESG reporting software is essential for companies, enabling them to transparently and effectively measure, manage, and report their ESG performance. Further, the German ESG Reporting Software Market held the largest market share, and the UK ESG Reporting Software Market was the fastest-growing market in the European region.

The Asia-Pacific ESG Reporting Software Market is expected to grow at the fastest CAGR from 2024 to 2032. Governments throughout the Asia-Pacific region are increasingly enacting regulations and policies aimed at promoting sustainability and encouraging ESG practices. For example, Japan and South Korea have implemented frameworks to encourage corporate transparency regarding ESG issues. In India, the Securities and Exchange Board of India (SEBI) has mandated that the top 1000 listed entities must disclose ESG information under the Business Responsibility and Sustainability Reporting framework starting from the financial year 2022-23. Recent reports indicate a significant increase in ESG investments in India, rising from USD 330 million in 2019 to USD 1.3 billion by 2023, underscoring the growing importance of ESG considerations. Moreover, initiatives such as China's Green Finance policies and India's Corporate Social Responsibility (CSR) regulations are compelling companies to adopt ESG reporting software to meet these requirements and enhance transparency. Moreover, China’s ESG Reporting Software Market held the largest market share, and the Indian ESG Reporting Software Market was the fastest-growing market in the Asia-Pacific region.

ESG Reporting Software Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the ESG Reporting Software market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the ESG Reporting Software industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global ESG Reporting Software industry to benefit clients and increase the market sector. In recent years, the ESG Reporting Software industry has offered some of the most significant advantages to the global corporate landscape. Major players in the ESG Reporting Software Market, including Wolters Kluwer (Netherlands), Nasdaq (US), PWC (UK), Workiva (US), LSEG(UK), Greenstone (UK), Diligent (US), Sphera (US), Cority (Canada), and Intelex (Canada) are attempting to increase market demand by investing in research and development operations.

Wolters Kluwer NV is a company specializing in information services and publishing. It provides a range of services, including education, research, practice management, transactional support, risk management, and compliance. Its solutions assist customers in making crucial daily decisions across diverse sectors such as healthcare, tax, accounting, audit, risk, compliance, corporate services, financial services, legal, and regulatory affairs. Headquartered in Alphen aan den Rijn, the Netherlands, Wolters Kluwer operates globally, serving markets in North America, Europe, Asia Pacific, and Latin America. In December 2022, Wolters Kluwer collaborated with Caixa Geral de Depósitos (CGD), a Portuguese state-owned banking corporation. This partnership led to CGD adopting Wolters Kluwer's OneSumX software for regulatory reporting, ensuring compliance with directives for central registration depository and capital requirements.

Nasdaq Inc (Nasdaq) is a global technology company specializing in capital markets, offering platforms and services essential for financial operations. The company provides a comprehensive range of solutions, including data, analytics, software, exchange services, and client-centric offerings to support business strategies. Its portfolio encompasses trade management, data products, trading, and clearing services across various asset classes and financial indexes. Nasdaq also delivers corporate solutions, capital formation services, and market technology solutions. The company enhances trading efficiencies with market-agnostic smart routing and improved connectivity to dark pools, ensuring optimal execution for clients. Operating in North America, Asia-Pacific, Europe, and the Middle East, Nasdaq is headquartered in New York City, New York, USA. In February 2022, Nasdaq expanded its collaboration with Notified, a business segment of Intrado Corporation specializing in technology-enabled services. This partnership empowers Notified customers to streamline the management and reporting of Environmental, Social, and Governance (ESG) efforts, simplifying processes for tracking, gathering, approving, and disclosing ESG data.

Key companies in the ESG Reporting Software Market include

• Wolters Kluwer (Netherlands)


• Nasdaq (US)


• Workiva (US)


• PWC (UK)


• LSEG(UK)


• Greenstone (UK)


• Diligent (US)


• Sphera (US)


• Cority (Canada)


• Intelex (Canada)

ESG Reporting Software Industry Developments

November 2022: Refinitiv, an LSEG Business, agreed with Capital.com to provide traders and investors with access to environmental, social, and governance (ESG) data. This collaboration allows users to directly access ESG scores and financial data on the Capital.com platform, aiding them in making informed, sustainable investment and trading decisions.

November 2022: Wolters Kluwer initiated a technology partnership with Quandantics Group as part of its expansion strategy in Southeast Asia. The partnership focuses on introducing Wolters Kluwer's CCH Tagetik Corporate Performance Management (CPM) platform to corporate entities across Asia, facilitating improved organization of their data collection, processing, and reporting efforts.

ESG Reporting Software Market Segmentation

ESG Reporting Software Market Offering Outlook

• Software
  
  
  
  • Environmental ESG Reporting Software
  
  
  • Social ESG Reporting Software
  
  
  • Governance ESG Reporting Software
  
  
  
  


• Services
  
  
  
  • Consulting
  
  
  • Integration & Deployment
  
  
  • Support & Maintenance
  
  
  
  

ESG Reporting Software Market Deployment Mode Outlook

• On-premises


• Cloud

ESG Reporting Software Market Organization Size Outlook

• Large Enterprises


• SMES

ESG Reporting Software Market Vertical Outlook

• BFSI


• Government, Public Sector & Non-Profit


• Manufacturing


• Food & Beverages


• Retail & Consumer Goods


• Energy & Utilities


• Other Verticals

ESG Reporting Software Market Regional Outlook