Global ESG Reporting Software Market Research Report Forecast: (2025-2030)

Market Definition

ESG reporting software is a solution that helps firms gather, analyze, and present their ESG (Environmental impact, social responsibilities, and government policies) information. It can automate the governance of sustainability information and adherence to ESG reporting standards.

Market Insights & Analysis: Global ESG Reporting Software Market (2025-2030):

The Global ESG Reporting Software Market size was valued at around USD 0.95 billion in 2024 and is projected to reach USD 2.6 billion by 2030. Along with this, the market is estimated to grow at a CAGR of 18% during the forecast period, i.e., 2025-30. The ESG reporting software market is expanding quickly for various reasons. Rising regulatory requirements necessitate that companies reveal their environmental, social, and governance metrics. Furthermore, greater examination from investors is encouraging companies to adopt transparent and accountable practices.

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Businesses are actively highlighting sustainability and ethical governance as vital elements of their operations. To address these requirements, numerous companies have chosen specialized software applications. These tools aid in the effective gathering, reporting, and examination of ESG-related data, allowing organizations to fulfill compliance obligations and showcase accountability efficiently. Moreover, growing awareness regarding climate change, social justice concerns, and the necessity for strong corporate governance systems boosts the need for thorough ESG solutions that assist companies in managing risks.

The demand for ESG reporting software is increasing because of growing government regulations and compliance requirements for ESG disclosures. It requires organizations to meet their legal obligations to avoid penalties. The EU Corporate Sustainability Reporting Directive commenced in January 2023, with the initial reports expected in 2025 for the fiscal year 2024. It significantly expands the range of businesses included under the directive. Governments and regulatory agencies globally are enforcing strict rules that demand companies to provide more thorough and regular ESG reports. This directive guarantees that investors and other stakeholders have access to vital information to assess the effects of companies on both individuals and the environment. It further aids in recognizing financial risks and opportunities associated with climate change and various sustainability concerns.

Additionally, the U.S. The Securities and Exchange Commission's proposed climate disclosure regulations, which were finalized in 2024, would require public companies to provide extensive climate information. This regulatory push in combination with increasing investor pressure has led to the more significant adoption of ESG reporting software by industries globally.

Moreover, the increasing stakeholder demand and the rise in investors' expectations are further driving the market growth. Rowing investor focus on sustainable and responsible investing requires companies to produce accurate and transparent ESG reporting, thereby driving companies to employ specific software that will provide the needed detailed and credible information. Global ESG assets are set to surpass USD 53 trillion by 2025, which will account for over one-third of the USD 140.5 trillion projected total assets under management. To meet the demands of enhanced transparency and accountability from customers, employees, and other stakeholders, organizations must implement robust ESG reporting solutions to track and communicate their sustainability efforts. For instance, more than 150 global companies have become a part of the Stakeholder Capitalism Metrics initiative by the World Economic Forum and commit to reporting on a set of universal, comparable ESG metrics and disclosures.

Global ESG Reporting Software Market Driver:

Rising Use of Open-Source Data Augmenting Innovation in ESG Management – Major factors driving the Global ESG Software Market include the greater adoption of cloud-based software solutions. These include improving scalability, delivering real-time useful data, and improving collaboration across global operations, thus driving the market. Companies are increasingly integrating cloud-based solutions in their ESG reporting systems to enhance the overall processes of ESG reporting, further boost their risk management strategies and ensure compliance with changing regulations. Cloud solutions are now the basis for acquiring ESG software and making strategic investments. For instance, in May 2024, Hg acquired AuditBoard for USD 3 billion, a cloud-based audit, risk, and ESG services provider. This acquisition accentuates cloud technology in streamlining operations and accomplishing ESG goals. In addition, the introduction of AI and significant data analytics also adds enhancements to the reliability of ESG reporting and ensures innovations that propel growth in the market.

Global ESG Reporting Software Market Opportunity:

Fusion of ESG with Risk Management & EHS Solutions – Integration of ESG reporting software with Environment, Health, and Safety (EHS) systems holds significant potential for the global market. These integrated solutions will help companies reach sustainability goals by streamlining compliance monitoring, increasing data accuracy, and improving risk detection and mitigation. In July 2023, Sphera launched an advanced ESG platform integrated with EHS and Risk Management tools, easing reporting procedures and aligning sustainability goals with operational priorities. The demand for all-in-one solutions is very high because of business pressure to meet ESG performance benchmarks. An EY survey in 2024 states that about 76% of companies consider future growth highly dependent on such integrated ESG and EHS systems, especially in the manufacturing and energy sectors. Besides those, developing regulations such as the Corporate Sustainability Reporting Directive provide additional encouragement for companies to instill stronger ESG reporting mechanisms.

Global ESG Reporting Software Market Challenge:

Complexity in the Standardization of ESG Data Limiting the Market Growth – Organizations face difficulties in having a uniform strategy because of different needs, reporting processes, and legal frameworks. These make it difficult for the ESG reporting software market players to standardize essential data across industries. Small businesses' ability to effectively engage in ESG activities is often hampered by the expensive cost of creating and maintaining sophisticated systems. Such costs include procurement, integration, and training in software. It affects the financial position of these companies. Variability also creates problems for organizations in ESG reporting standards. It causes confusion and uncertainty, especially in social and governance domains, where subjective metrics create difficulties in measurement. Organizations often get confused due to the complexity of ESG reporting and reporting regulations. It may deter potential investors and hinder the growth of the industry.

Global ESG Reporting Software Market Trend:

Integration of AI & ML into ESG Practices – The integration of AI and machine learning (ML) into ESG reporting enhances the process by automating data collection and standardization from multiple sources, making it a significant market trend. Predictive insights help make proactive decisions based on trends and risks. Advanced analytics is more accurate and efficient-compliance is effortless, thus fostering trust through transparent data-driven disclosures. For instance; in March 2024, IBM unveiled a new AI-driven ESG risk evaluation tool within its Environmental Intelligence Suite. The instrument employs natural language processing to examine corporate reports, news stories, and social media to detect possible ESG risks. Moreover, in December 2023, Microsoft revealed a significant upgrade to its Sustainability Cloud, incorporating sophisticated machine learning algorithms for better emissions prediction.

Global ESG Reporting Software Market (2025-2030): Segmentation Analysis

The Global ESG Reporting Software Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on End User:

• BFSI
• Government, Public Sector & Non-Profit Organization
• Manufacturing
• Food & Beverages
• Retail & Consumer Goods
• Energy & Utilities
• Others

Based on the end users, the BFSI sector leads the global market. It holds approx. 27% of the total market share. The BFSI sector has to contend with specific ESG risks that are linked with financial, reputational, and regulatory risks associated with climate change. The adoption of ESG reporting software can help financial institutions detect, quantify, and manage such risks better, thereby saving shareholder value and their ability to provide financial stability. ESG factors are increasingly becoming part of the investment decision-making processes of high-net-worth individuals and asset managers in the BFSI sector. To accurately ascertain their dependence on ESG risks and opportunities, they require clear and reliable ESG data from financial companies. BFSI firms are likely to respond to the investor's need for ESG accountability and transparency by employing ESG reporting tools.

Based on Organization Size:

• SMEs
• Large Enterprises

Large enterprises lead the global market, having a market share of around 60%. Large enterprises possess a broader and more varied range of investors. Investors are seeking greater transparency and reliable ESG information to evaluate the sustainability and ethics of their investments. To fulfill their expectations and stay appealing, large enterprises need robust reporting software for ESG. Furthermore, because of their visibility, large enterprises are under more public and consumer scrutiny over their ESG practices. Such companies can better prove their commitment to sustainability and ethical practices with effective reporting through ESG reporting software that improves their public image and fosters customer loyalty.

Global ESG Reporting Software Market (2025-30): Regional Projections

Geographically, the Global ESG Reporting Software Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Out of them, North America dominates the Global ESG Reporting Software Market. It holds approx. 45% of the total market value. Highly advanced technological infrastructure and tight regulatory standards support it. The key markets are the U.S. and Canada, which have been highly active in ESG regulations and taking care of corporate sustainability. North American companies are also leading in incorporating ESG considerations into the core of their business strategies, making reporting tools even more sophisticated. The region's dominance is further fortified by the presence of major ESG reporting software providers and their continuous innovations. For instance; in February 2024, Workiva announced a significant upgrade to its ESG reporting platform, incorporating advanced AI capabilities for improved data accuracy and predictive analytics.

Increasing adoption across multiple industries and established financial and regulatory institutions have driven the market growth in the region. In addition, North America's robust venture capital ecosystem has been feeding into ESG tech startups, bringing competition and innovations to the space.

 Global ESG Reporting Software Industry Recent Development: 

• November 2024: With the introduction of four new solutions designed to assist businesses in meeting the regulatory requirements of the EU's new Corporate Sustainability Reporting Directive (CSRD), multinational professional services company Deloitte announced the extension of its "ESG accelerators" on the Workiva platform.
• June 2024: Wolters Kluwer N.V. launched CCH Tagetik ESG & Sustainability for Carbon Emissions, a new solution designed to assist companies in reporting and disclosing direct and indirect carbon emissions, including Scope 3 emissions.

Gain a Competitive Edge with Our Global ESG Reporting Software Market Report

1. Global ESG Reporting Software Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global ESG Reporting Software Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.

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