Global ESG Reporting Software Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Vertical, By Organization size (Large Enterprises and SMEs), By Deployment Mode, By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the ESG Reporting Software Market
Market Report Description
The Global ESG Reporting Software Market size is expected to reach $1.8 billion by 2028, rising at a market growth of 15.3% CAGR during the forecast period.
These days, ESG software is frequently used for financial, sustainable, and investment recommendations. Investors are primarily concentrating on investments and transparency connected to ESG. Businesses with strong ESG performance enjoy greater investment returns, lower risk, and improved crisis resilience. Companies must prepare for increased scrutiny of their ESG performance. To assist the trip by lowering risk and enhancing brand reputation, they need a better mix of technology and strategy.
The program allows ESG data collection and organization automation to help businesses comply with disclosure obligations and assess key performance metrics. ESG reporting discloses data about a company's activities in three essential categories: corporate governance, social responsibility, and the environment. In order to detect potential risk issues and development possibilities, investors are increasingly incorporating ESG aspects into their corporate operations. Growing corporate data volumes, existing applications' constant capability, and an increase in reliable disclosures are some aspects promoting market expansion.
ESG investment has grown dramatically over the last several years due to the pressing need for organizations, institutions, and a wide variety of stakeholders to address key issues, including prejudice, environmental degradation, climate change, and social inequality. The market for ESG reporting software is expected to expand due to the forecasted expansion in the adoption and implementation of ESG investment solutions.
COVID-19 Impact Analysis
The widespread COVID-19 pandemic has negatively impacted the worldwide economy, and there has been a decrease in overall business activities. The pandemic has substantially affected various industries by causing supply chain disruptions, reducing productivity, operational shutdowns, and unforeseen organizational changes in working and inventory management problems. The market for ESG reporting software may have been negatively affected in the initial few months but is expected to have significant growth afterward. The importance of ESG has risen substantially during the pandemic period. The pandemic showed that endangered businesses could be in a crisis.
Market Growth Factors
The Competitive Advantage of ESG
Implementing an ESG program increases brand awareness and even encourages brand loyalty. Customers nowadays are more conscious of ethical spending and are more interested in what a business is doing to help sustainability. Small- to medium-sized companies have been found to draw more clients and consumers who want to do business with firms addressing these problems if they have made efforts to address sustainability concerns (having an ESG program). Small and medium-sized businesses may add value by implementing an ESG program. In the past, it required more resources and was more challenging to manage and be consistent with ESG data.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
ESG Enhances a Company's Appeal to Lenders and Investors
One of the main benefits of establishing an ESG program is catching the interest of lenders and investors. Investors and lenders are more interested in organizations with an ESG program in place than those without, no matter where you search for ESG advantages. Companies that prioritize ESG stand out to lenders and investors because they often beat the competition. When it comes to how investors and lenders assess businesses, performance is simply the top of the iceberg. Both increasingly consider ESG performance when choosing whether enterprises to invest in.
Market Restraining Factors
Complex Handling of ESG Data
Data management is one of the most significant difficulties businesses will have when producing ESG disclosures. Many firms are beginning to organize their data to comply with legal obligations or even voluntary frameworks. And yet, since sustainability is intrinsically challenging to define, ESG reporting is already causing business difficulties. It is challenging to provide a comprehensive, integrated picture of the benefits and consequences of ESG since ESG data is often dispersed in silos throughout the firm or manually documented in spreadsheets.
Based on component, the ESG reporting software market is classified into solutions and services. In 2021, the services sector gained a sizeable revenue share in the market for ESG reporting software. With the provision of reporting as a managed solution, the services provide the customer with increased access to transparency and convenience. In addition, reporting services offer a collection of templates that cater to certain use cases like TCFD reporting, reporting on climate change, and gauging the customization capabilities for providing client brand reports.
Based on vertical, ESG reporting software market is classified into BFSI, IT & ITeS, government & public, manufacturing, retail, and consumer goods, health care & life science, energy & utilities, and other verticals. The government may be very helpful with the management and transition of ESG risk as well as by exerting the impact on the outcomes with the aid of their policy and regulatory operation. However, it seems that allocating early measurements and analyses of the ESG risk to each sector will best capture them.
Organization Size Outlook
Based on organization size, the ESG reporting software market is segmented into large enterprises and small and medium enterprises. In terms of revenue, the large enterprise category accounted for largest share of the ESG reporting software market in 2021. Transparency and socially responsible business practices are in great demand in the market. Customers, NGOs, investors, and employees are just a few stakeholders that major businesses often have to account for. This stakeholder is interested in learning about the company's global effect.
On the basis of deployment mode, the ESG reporting software market is divided into on premise and cloud. The on premise segment held the highest revenue share in the ESG reporting software market in 2021. Stakeholders and investors want to understand a company's ESG policies and how they could affect its financial performance; hence ESG reporting is becoming more and more crucial. Real estate organizations can use ESG reporting as a useful tool to enhance their social responsibility and sustainability strategies.
|Market size value in 2021||USD 681.2 Million|
|Market size forecast in 2028||USD 1.8 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 15.3% from 2022 to 2028|
|Number of Pages||286|
|Number of Tables||464|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Component, Organization size, Deployment Mode, Vertical, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
On the basis of region, the ESG Reporting Software Market is analyzed in North America, Europe, Asia Pacific, and LAMEA. The North American region held the largest revenue share in the ESG reporting software market in 2021 globally. The regional institutional financial community's growing embrace of ESG is anticipated to provide significant growth prospects for the North American investor ESG software industry. The benefits of shareholder ESG software are also accelerating the sector's growth. Organisations' environmental, social, and governance (ESG) problems and opportunities are of interest to investors.
Free Valuable Insights: Global ESG Reporting Software Market size to reach USD 1.8 Billion by 2028
KBV Cardinal Matrix - ESG Reporting Software Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; London Stock Exchange Group PLC is the major forerunner in the ESG Reporting Software Market. Companies such as Wolters Kluwer N.V., PwC, Diligent Corporation are some of the key innovators in ESG Reporting Software Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Wolters Kluwer N.V., Nasdaq, Inc., Pricewaterhousecoopers LLP (PwC), Workiva, Inc., London Stock Exchange Group PLC (Refinitiv Company), Greenstone plus, Diligent Corporation, Sphera Solutions, Inc., Cority Software, Inc. (Thoma Bravo), Intelex Technologies, ULC (Industrial Scientific Corporation).
Strategies deployed in ESG Reporting Software Market
» Partnerships, Collaborations and Agreements:
- Dec-2022: Workiva announced its partnership with Watershed, the enterprise climate platform. The partnership focuses on delivering a unified solution for consolidated, audit-grade carbon emissions reporting to joint customers. Watershed complements Workiva's ESG reporting platform by enabling joint customers to add Watershed's carbon data into Workiva. Therefore, Workiva's integrated reporting platform organizes the processes and integrated teams and data for allowing investor-grade, audit-ready reporting.
- Dec-2022: Wolters Kluwers teamed up with Caixa Geral de Depositos (CGD), a Portuguese state-owned banking corporation. Following this collaboration, CGD selected OneSumX software, Wolters Kluwer Finance, Risk and Regulatory Reporting’s (FRRs) for regulatory reporting obligations. This solution enables the former corporation to comply with central registration depository directives and capital requirement regulations.
- Dec-2022: PwC India together with The Indian Institute of Management Ahmedabad (IIMA), a premier global management Institute, established the ‘PwC ESG Research and Innovation Forum’. Initially, this forum has been set up for five years, facilitated by the efforts of the IIMA Endowment Fund (IIMAEF). PwC ESG Forum at IIMA acts as a place for knowledge exchange and sharing among the ESG stakeholders, driven by a marquee event or series of events that the Forum will host at IIMA.
- Dec-2022: Refinitiv, a London Stock Exchange Group business announced a collaboration with Clarity AI, a sustainable data company. The collaboration aims to create a tool for reporting in line with the Sustainable Finance Disclosure Regulation (SFDR). The SFDR Reporting Professional features combined capabilities utilizing market-leading data coverage of more than 50,000 companies. It is complemented by LSEG’s comprehensive range of reported data on ESG, fundamentals, funds, and sovereigns.
- Nov-2022: Sphera collaborated with Eastman, a specialty materials company for the forthcoming iteration of Sphera's Life Cycle Assessment (LCA) Automation software. Sphera's LCA Automation tool enables businesses to minimize their greenhouse gas emissions effectively at every step of production.
- Nov-2022: Refinitiv, an LSEG Business signed an agreement with Capital.com for offering traders and investors environmental, social, and governance (ESG) data. Through this agreement, traders can access ESG scores and financial data directly from the Capital.com platform for helping them make sustainable investment and trading decisions.
- Nov-2022: Wolters Kluwers came into a technology partnership with Quandantics Group as a part of its expansion strategy in Southeast Asia. The partnership between Quandatics and CCH Tagetik aims to bring CCH Tagetik Corporate Performance Management (CPM) platform to Asia's corporate entities in organizing their data collection, processing, and reporting efforts.
- Sep-2022: PwC announced a collaboration with Metabolic, a system change agency that helps organizations tackle sustainability challenges. Together, the companies aim to put organizations' Environmental Social, and Governance goals (ESGs) and sustainability strategies on the fast track. The collaboration integrates PwC’s expertise with Metabolic’s specific knowledge and software for sustainable value chains and climate change mitigation initiatives that restore biodiversity – the economic model of the future.
- Aug-2022: Wolters Kluwers came into collaboration with Acsm Agam SpA, an electric services company. Under this collaboration, the latter company selected CCH Tagetik ESG & Sustainability Performance Management expert solution for capitalizing on intelligent and advanced ESG reporting capabilities. Acsm aims to fulfill the EU Taxonomy needs and optimize its ESG performance through extending the use of the CCH Tagetik Platform by adding ESG & Sustainability solutions.
- Jun-2022: Diligent partnered with Q4, Inc., a provider of the capital markets communications platform. The partnership would offer easy access to best-of-breed IR and board governance solutions to pre-IPO and public companies, by equipping them with the tools required to succeed. With this partnership, the listing companies would get benefits from Q4's investor relations platform and Diligent's Board & Leadership Collaboration solution in one easily accessible suite, enabling them to apply market-leading solutions fastly to fuel good governance and manage investor relations pre-IPO and beyond.
- May-2022: Cority announced its partnership with Lactalis Group for delivering an integrated and simplified solution for managing the latter company's health, safety, and sustainability programs.
- May-2022: With the existing collaboration with Workiva, Deloitte has come up with four new types of accelerators for the Workiva Platform. It focuses on environmental, Social, and Governance (ESG) accounting, compliance, and, financial reporting. The Deloitte Workiva accelerators modernize internal processes for gathering diverse ESG data, as well as streamlining and automating ESG reporting capabilities comprising enhanced framework alignment and data collection methods.
- May-2022: PwC partnered with Sphera, a provider of ESG performance and risk management software, data, and consulting services. The partnership focuses on rapidly scaling the implementation of the latter company's leading ESG software platform and solutions. Additionally, this move will help in growing Sphera's customer base fastly, broadening the usage of Sphera's platform suite of capabilities and developing a stronger ESG digital ecosystem for PwC customers.
- Feb-2022: PwC extended its partnership with Workiva, the cloud-based financial reporting technology company, for handling environmental, social, and governance reporting and services. Earlier, the companies came together for utilizing Extensible Business Reporting Language (XBRL) technology for financial reporting and filings with the Securities and Exchange Commission. The expansion contributes to the emerging requirements of ESG reporting and the SEC's plans for requiring companies to disclose more information regarding their climate change risk. Following the expansion, the companies would focus more on sustainability reporting.
- Feb-2022: Workiva signed a partnership agreement with Persefoni, Inc., the Climate Management and Accounting SaaS Platform. The partnership aims to deliver transparent and investor-grade carbon disclosures seamlessly to joint customers. Additionally, this partnership set up the only reporting solution in the market that streamlines transparent and connected financial and environmental, social, and governance (ESG) reporting with deeper granularity around greenhouse gas accounting following the greenhouse gas protocols (GHGP) for tracking carbon emissions in Scope 1, indirect emissions in Scope 2, and upstream and downstream emissions in Scope 3.
- Feb-2022: Nasdaq extended into partnership with the Notified business segment of Intrado Corporation, a company operating in technology-enabled services. The partnership provides Notified customers the capability of managing and reporting Environmental, Social, and Governance (“ESG”) efforts by simplifying the tracking, gathering, approving, and disclosing of ESG Data.
- Jan-2022: Nasdaq announced a partnership with Measurabl, a company that provides ESG (environmental, social, governance) solutions for real estate. Following the partnership, Measurabl would provide the option to utilize its leading ESG (environmental, social, governance) technology platform to Nasdaq OneReport’s customers.
» Product Launches and Product Expansions:
- Oct-2022: Wolters Kluwers added ESG Daily to its daily reporting suite on VitalLaw. The new feature offers access to news and expert analysis to customers in energy, sustainability, and governance (ESG) affecting a wide range of legal practice areas comprising banking, securities, health, labor, and employment.
- Jun-2022: PwC Luxembourg unveiled an interactive SG Dashboard for supporting the asset managers of Europe in expanding their ESG Operations and getting an accurate view of investor demand and market developments. This dashboard comprises an interactive report and raw data files, and an interactive data tool for delivering granular and comprehensive insights into ESG investing landscape and sentiment in European institutional investors.
- Apr-2022: Wolters Kluwers broadened its comprehensive regulatory compliance portfolio by launching CCH Tagetik ESG & Sustainability Performance Management, a pre-built expert solution. The solution integrated Environmental, Social, and Governance (ESG) initiatives and financial performance for helping companies in creating powerful ESG reporting and managing compliance needs while focusing on sustainable growth strategies.
- Sep-2021: Sphera launched its integrated ESG solutions consisting of software and consulting services, and a comprehensive suite of data that helps customers in elevating their ESG performance and reporting capability effectively and quickly.
- Aug-2021: Diligent announced the launch of Diligent ESG on its governance, risk, and compliance (GRC) platform, the most comprehensive ESG Software solution in the market. The solution acts as a center for ESG data from various sources for supporting risk monitoring, goal setting, and stakeholder reporting.
- Jul-2021: Sphera announced the launch of the SpheraCloud platform through new interconnected features and an enhanced user interface. These enhancements aim to offer vital ESG and risk management information to customers in an intuitive, integrated, and streamlined way.
» Geographical Expansion:
- Nov-2022: Wolters Kluwers opened the CCH Tagetik office in Seoul to expand its footprint in the Asia Pacific region to eleven countries. This expansion would address the emerging need for scalable and proven Corporate Performance Management (CPM) solutions with state-of-the-art governance that integrate and streamline financial processes in South Korea.
- Jul-2022: Diligent established a new 35,000 sq ft European hub at Bonham Quay in Galway. The new office empowers the team to empower leaders with insights, technology, and connections they need for greater impact.
- Sep-2021: Greenstone established the first US Office in New York for fulfilling the emerging needs of clients. The office establishment has been made in response to more information requests from investors, reinforcing US regulations on climate and evolving reporting requirements.
» Acquisition and Mergers:
- Oct-2022: Sphera acquired Riskmethods, a company specializing in supply chain risk management. The acquisition complements the former company's innovation and expansion in ESG solutions.
- Sep-2022: Cority took over Reporting 21, a sustainability-focused SaaS platform and consultancy. The acquisition enables the company to empower organizations to operate responsibly and make better decisions.
- Jun-2022: Nasdaq completed the acquisition of Metrio, a provider of ESG data collection, reporting, and analytics software. Following the acquisition, Nasdaq integrated Metrio's software as a service (SaaS) platform into its ESG solutions portfolio, strengthening its suite of IR & ESG Services.
- Apr-2022: PwC Luxembourg acquired Data Central, a data management platform created by April Software, an IT Company. The acquisition aims to address data source multiplication and continuously rising reporting requirements' challenges.
- Jan-2022: Diligent announced the acquisition of Insightia, a SaaS provider of intelligent analytics and expert insights for listed companies. The acquisition would offer more meaningful insights to clients for powering their board and organizations' governance practices through integrating Insightia’s vital intelligence throughout a range of public company data with Diligent’s leading governance, analytics, and ESG solutions.
- Dec-2021: Workiva took over AuditNet, a company that provides hundreds of audit programs, SOX work programs, and internal control questionnaires. The acquisition added the first online portal for the global audit community to its portfolio.
- Aug-2021: Diligent took over Accuvio, an environmental, social, and governance (ESG) data aggregation and reporting software company. Jointly, the companies aim to deliver the most comprehensive SG solution to clients by adding next-generation ESG data throughout governance, risk, compliance, and diversity with natural integration points that bring critical intelligence to executives and the board.
- Apr-2021: Cority acquired WeSustain, a company engaged in developing innovative software solutions. The acquisition complemented the CorityOne Platform as well as strengthened Cority’s presence in Europe. Also, the acquisition positioned the former company to continuously increase the strategic impact of ESG factors in every big enterprise across the world.
Scope of the Study
Market Segments Covered in the Report:
- IT & ITeS
- Retail & Consumer Goods
- Government & Public Sector
- Healthcare & Life Sciences
- Energy & Utilities
By Organization size
- Large Enterprises
By Deployment Mode
- On premise
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Wolters Kluwer N.V.
- Nasdaq, Inc.
- Pricewaterhousecoopers LLP (PwC)
- Workiva, Inc.
- London Stock Exchange Group PLC (Refinitiv Company)
- Greenstone plus
- Diligent Corporation
- Sphera Solutions, Inc.
- Cority Software, Inc. (Thoma Bravo)
- Intelex Technologies, ULC (Industrial Scientific Corporation)
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What would be the size of the ESG Reporting Software Market by 2028?
The global ESG Reporting Software Market size is expected to reach $1.8 billion by 2028.
What are the key driving factors and challenges in the ESG Reporting Software Market?
The Competitive Advantage of ESG are driving the market in coming years, however, Complex Handling of ESG Data restraints the growth of the market.
What are the major top companies in the competitive landscape?
Wolters Kluwer N.V., Nasdaq, Inc., Pricewaterhousecoopers LLP (PwC), Workiva, Inc., London Stock Exchange Group PLC (Refinitiv Company), Greenstone plus, Diligent Corporation, Sphera Solutions, Inc., Cority Software, Inc. (Thoma Bravo), Intelex Technologies, ULC (Industrial Scientific Corporation).
Which segment shows a high revenue share of the ESG Reporting Software Market in 2021?
The Solution market acquired maximum revenue in the Global ESG Reporting Software Market by Component in 2021; thereby, achieving a market value of $1.4 billion by 2028.
Which segment is leading the market in 2021?
The BFSI market is leading the Global ESG Reporting Software Market by Vertical in 2021; thereby, achieving a market value of $468.6 million by 2028.
Which region dominated the ESG Reporting Software Market in 2021?
The North America market dominated the Global ESG Reporting Software Market by Region in 2021; thereby, achieving a market value of $613.1 million by 2028.