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ESG Reporting Software Market Size, Industry Analysis By Segmentations, Top Key Players, Trends, Future Development & Forecast By 2033

  • PUBLISHED ON
  • 2023-06-01
  • NO OF PAGES
  • 274
  • CATEGORY
  • Information Communication & Technology
Market Overview:

ESG Reporting Software Market size was valued at USD 0.56 billion in 2022, and is projected to reach USD 2.57 billion by 2033 at a CAGR of 18.5% from 2023 to 2033.

SG (Environmental, Social, and Governance) reporting software is a type of software that helps organizations collect, analyze, and report data related to their sustainability practices, social impact, and corporate governance.

Report Scope

Report Attributes

Description

Market Forecast in 2022

USD 560 million

Market Forecast in 2033

USD 2,570 million

CAGR % 2023-2033

18.5%

Base Year

2022

Historic Data

2018-2021

Forecast Period

2023-2033

Report USP

Product, end-user industry, company share, company heat map, company Capacity Technology Product capacity, growth factors and more

Key Companies

SAP SE, BlackRock Inc., MSCI Inc., Sustainalytics, ISS ESG, Moody's Corporation, S&P Global Inc., Enablon, Goby Inc., Trucost, part of S&P Global, Bloomberg LP, ERM Group, Inc., Refinitiv, Qomply Limited, Nasdaq, Inc,



This software enables companies to track and report on metrics such as carbon emissions, diversity and inclusion, board diversity, labor practices, and community engagement. The ESG reporting software market is growing rapidly due to increased demand for transparency and accountability from investors, regulators, and consumers.

ESG reporting software is increasingly being integrated with other software systems such as accounting and financial reporting software to provide a comprehensive view of an organization's performance. ESG reporting software is incorporating AI and ML to help companies identify areas for improvement and optimize their sustainability efforts. As ESG reporting becomes more important, there is an increased demand for accurate and verified data.

Growing demand for sustainability reporting: As companies face increasing pressure from stakeholders to address environmental and social issues, the demand for ESG reporting software is expected to grow. ESG reporting software is currently most prevalent in industries such as finance and energy, but there is an opportunity to expand into other industries such as healthcare and manufacturing.

As ESG Reporting Software Market grows, there is an opportunity for ESG reporting software companies to develop new features and functionalities that meet the evolving needs of their customers. ESG reporting software companies can partner with other organizations such as sustainability consultants and non-profits to provide a more comprehensive suite of services.

Growing demand for transparency and accountability from investors is propelling ESG Reporting Software Market growth

Investors are increasingly considering ESG factors in their investment decisions, as they recognize that companies with strong sustainability practices are more likely to be financially sustainable in the long run. Regulators are also pushing for increased transparency and reporting on ESG factors, as they recognize the importance of environmental and social issues for the stability of the financial system.

Consumers are also playing a role in driving demand for ESG reporting software. They are becoming more conscious of the impact of their purchasing decisions on the environment and society and are increasingly seeking out products and services from companies with strong sustainability practices.

As a result of these factors, companies are under increasing pressure to report on their sustainability practices and performance. ESG reporting software provides a solution for companies to collect, analyze, and report on their ESG data in a comprehensive and standardized way. This helps companies to demonstrate their commitment to sustainability and to meet the growing demand for transparency and accountability from investors, regulators, and consumers.

Geography:

Currently, North America dominates the ESG reporting software market due to the presence of several large ESG software vendors in the region, as well as the growing demand for ESG reporting among companies in the region. The United States is the largest market for ESG reporting software in North America due to the high adoption rate among large companies and the increasing regulatory pressure to report on ESG factors.

Europe is also a significant market for ESG reporting software, driven by the European Union's Sustainable Finance Action Plan, which aims to redirect capital towards sustainable investments and improve corporate reporting on sustainability issues. This has led to the implementation of several ESG reporting regulations in the region, such as the EU Taxonomy, which requires companies to report on the sustainability of their investments.

The Asia-Pacific region is expected to be the fastest-growing market for ESG reporting software in the coming years, due to increasing awareness of sustainability issues and growing regulatory pressure in countries such as China and India. The region also has a large and growing pool of investors who are incorporating ESG factors into their investment decisions, driving demand for ESG reporting from companies.

Overall, the ESG reporting software market is expected to grow significantly in all regions as companies face increasing pressure from stakeholders to report on their sustainability practices and performance.

Impact of COVID-19 on the global ESG Reporting Software Market:

The COVID-19 pandemic has had both positive and negative impacts on the ESG reporting software market. On the one hand, the pandemic has increased awareness of sustainability issues and highlighted the importance of corporate responsibility and accountability. This has led to an increased demand for ESG reporting software as companies seek to demonstrate their commitment to sustainability and meet the growing demand from investors and other stakeholders for ESG disclosure.

On the other hand, the pandemic has also resulted in a slowdown in the global economy and a decrease in business activity, which has affected the adoption of ESG reporting software by some companies. Some businesses have had to delay or cancel their sustainability initiatives due to financial pressures and a need to focus on more immediate concerns.

The pandemic has also led to changes in the way companies operate, with many adopting remote work arrangements and digital technologies to maintain business continuity. This has led to an increased demand for cloud-based ESG reporting software as companies seek flexible and scalable solutions that can be accessed remotely.

Impact of the Russia-Ukraine War on the global ESG Reporting Software Market:

The ongoing conflict between Russia and Ukraine could have several potential impacts on the global economy and financial markets. Russia is a major producer and exporter of oil and natural gas, and any disruptions to its energy exports could lead to price spikes and supply shortages in global energy markets. The conflict could also affect pipelines and other infrastructure, leading to potential supply disruptions.

Economic sanctions: If the situation escalates, there is a possibility of economic sanctions being imposed by Western countries against Russia, which could lead to reduced trade and investment flows between Russia and the rest of the world. This could have negative impacts on the global economy, particularly in Europe where Russia is a significant trading partner.

The conflict could increase geopolitical tensions between Russia and other countries, leading to increased uncertainty and risk in global financial markets. This could result in higher volatility in asset prices, particularly in emerging markets. In times of geopolitical uncertainty, investors often seek safe-haven assets such as gold, the US dollar, and government bonds. This could lead to increased demand for these assets, potentially driving up their prices.

Company Profiles:

• SAP SE
• BlackRock Inc.
• MSCI Inc.
• Sustainalytics
• ISS ESG
• Moody's Corporation
• S&P Global Inc.
• Enablon
• Goby Inc.
• Trucost, part of S&P Global
• Bloomberg LP
• ERM Group, Inc.
• Refinitiv
• Qomply Limited
• Nasdaq, Inc

Segmentation:

By Deployment type:
• On-premise
• Cloud-based

By End-use industry:
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• Manufacturing
• Energy and utilities
• IT and telecom
• Others

Regional Scope

North America
• U.S.
• Canada
• Mexico

Europe
• U.K.
• Germany
• France
• Italy
• Spain
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Rest of Asia Pacific

South America
• Brazil
• Argentina
• Rest of South America

Middle East and Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of Middle East and Africa


Quality Assurance Process

  1. We Market Research’s Quality Assurance program strives to deliver superior value to our clients.

We Market Research senior executive is assigned to each consulting engagement and works closely with the project team to deliver as per the clients expectations.

Market Research Process




We Market Research monitors 3 important attributes during the QA process- Cost, Schedule & Quality. We believe them as a critical benchmark in achieving a project’s success.

To mitigate risks that can impact project success, we deploy the follow project delivery best practices:
  • Project kickoff meeting with client
  • Conduct frequent client communications
  • Form project steering committee
  • Assign a senior SR executive as QA Executive
  • Conduct internal editorial & quality reviews of project deliverables
  • Certify project staff in SR methodologies & standards
  • Monitor client satisfaction
  • Monitor realized value post-project

Case Study- Automotive Sector

One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).

Solution

The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research

The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.

Market Estimates and Forecast

In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.

Case Study- ICT Sector

Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.


Business Solution

An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.


Conclusion

The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.


Frequently Asked Questions

What is the market size and growth projections?

The global ESG Reporting Software Market size was valued at USD 0.56 billion in 2022, and is projected to reach USD 2.57 billion by 2033 at a CAGR of 18.5% from 2023 to 2033.

What are the drivers shaping various markets?

Growing demand for sustainability reporting: As companies face increasing pressure from stakeholders to address environmental and social issues, the demand for ESG reporting software is expected to grow. ESG reporting software is currently most prevalent in industries such as finance and energy, but there is an opportunity to expand into other industries such as healthcare and manufacturing.

Who are the key competitors of market Players?

Some of the major players operating within the market are SAP SE, BlackRock Inc., MSCI Inc., Sustainalytics, ISS ESG, Moody's Corporation, S&P Global Inc., Enablon, Goby Inc., Trucost, part of S&P Global, Bloomberg LP, ERM Group, Inc., Refinitiv, Qomply Limited, Nasdaq, Inc,

What are the top performing segments, and countries / regions of each of the markets?

Europe is also a significant market for ESG reporting software, driven by the European Union's Sustainable Finance Action Plan, which aims to redirect capital towards sustainable investments and improve corporate reporting on sustainability issues. This has led to the implementation of several ESG reporting regulations in the region, such as the EU Taxonomy, which requires companies to report on the sustainability of their investments.

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