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Global ESG-Focused Software Market Research Report – Segmented By Components (Software’s, Services); Enterprise Size (Large Corporations, SME’s) and Region - Size, Share, Growth Analysis | Forecast (2023 – 2030)

Global ESG-Focused Software Market Size (2023 – 2030)

According to our research report, the Global ESG-Focused Software Market in 2022 was valued at $0.75 billion, and is projected to reach a market size of $2.29 billion by 2030. Over the forecast period of 2023-2030, market is projected to grow at a CAGR of 15%.

Global ESG-Focused Software Market Size

Industry Overview

As companies get closer to decarburization, the importance of high-quality, reliable, and consistent data to indicate progress is expanding. Data analytics tools that improve ESG reporting and performance are helping to achieve this. Sustainability data and analytics systems are being designed by software developers to meet audit and assurance criteria. End users are embracing software platforms that offer a data format, allowing their organizations to compile accurate greenhouse gas (GHG) inventories that reflect the most recent emission boundary determinations.

Software that provides comparable KPIs (Key Performance Indicators), a complete ecological footprint, and worldwide compliance is in high demand. Normative, a company that automates carbon reporting, is promoting its investor ESG software, which evaluates firms' ESG performance over time. ESG initiatives are being used by an expanding number of asset owners. Managers of investment funds are likely to follow suit. This helps to explain why the market for investor ESG software is estimated to reach US$ 2.3 billion by 2030. Platforms for calculations based on the Greenhouse Gas Protocol are available from companies in the investor ESG software sector (GHGP). These programs are capable of determining an organization's direct emissions.

Impact of Covid-19 on the Industry

Investors are expected to address ESG (Environmental, Social, and Governance) concerns in the aftermath of the COVID-19 pandemic in an attempt to fill the gaps left by the pandemic. Such results are projected to convert into future revenue potential for players in the investor ESG software market during the forecast period. Small, medium and big businesses are considering the social aspect of ESG, and the green bond market will continue to develop as climate change becomes a top priority for many businesses. With the introduction of new technologies, methodologies, and players, the investor ESG software industry is expected to experience substantial transformation, with a renewed focus on ESG integration driven by data.

The COVID-19 epidemic has wreaked havoc on several sectors. The rapid spread of the new coronavirus has prompted governments throughout the world to adopt tight vehicle and person mobility restrictions. The pandemic has hurt economies and multiple businesses in various nations as a result of travel bans, mass lockdowns, and company closures. The installation of the lockdown has resulted in a reduction in the production of commodities, goods, and services. Due to the temporary stoppage of activity, manufacturing, automotive, semiconductor & electronics, oil & gas, mining, aviation, and other industries have seen a drop in their operations. Lockdowns have been established by the governments of various nations throughout the world to stop the spread of the illness.

Market Drivers

Market sales are fueled by a growing desire to address environmental issues

Various firms, government agencies, investors, and other stakeholders have increased their attention to ESG investments in recent years. The primary motivation for this action is to address a variety of issues such as climate change, environmental degradation, social inequality, and prejudice. As a result, these organizations are increasingly turning to investor ESG software. Many institutional investors avoid stocks that do not fit the Environment Social Governance (ESG) criteria. This will result in a surge in demand for ESG software.          

Market growth is fueled by an increase in investor esg software adoption for investment decisions

Following the global financial crisis of 2008, ESG considerations in stock market investing decisions are becoming increasingly frequent as a key aspect of long-term sustainability. ESG considers the long-term return, risk reduction, and accountability elements of investing, among other things. The need for investor ESG software is expected to rise shortly as a result of this reason.

Companies and organizations are compelled to follow ESG indicators

Various businesses are now required to track and report on their environmental performance. Furthermore, they must adhere to environmental, social, and governance (ESG) standards as well as corporate social responsibility (CSR) norms. As a result, these companies are rapidly using investor ESG software, which is improving market sales potential. The inclusion of ESG data into investment decision-making may benefit society, the environment, and investors in ESG investing. Investor ESG software use is expected to rise in the future years as a result of this factor.

Market Restraints

Majorities of the companies don’t meet the ESG criteria

The ESG analysis filter out the majority of the companies in the market. The companies which fit under ESG criteria are mostly large-cap companies which makes it difficult for the investors to diversify their portfolios based on ESG analysis. This might act as a market constraint in the ESG software market.

ESG-FOCUSED SOFTWARE MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2022 - 2030

Base Year

2022

Forecast Period

2023 - 2030

CAGR

15%

Segments Covered

By Components, Enterprise Size, and Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regional Scope

North America, Europe, APAC, Latin America, Middle East & Africa

Key Companies Profiled

Accueilio, Dynamo Software, Inc., Enablon, EnHelix Inc, Fincite GmbH, FactSet Research Systems Inc., GOBY, Greenstone+ Ltd, Refinitiv, WeSustain GmbH Esko

This research report on the global ESG software market has been segmented and sub-segmented based on Components, Enterprise size, Geography & region.

Global ESG Software Market- By Components

  • Software’s
  • Services

The investor ESG software market is divided into software and services based on components. In 2021, the software category had a greater market share. Investor ESG software is gaining popularity since it assists businesses in mitigating and avoiding various business behavior risks related to their assets, investments, and operations. Various businesses are now required to track and report on their environmental performance. Furthermore, they must adhere to environmental, social, and governance (ESG) standards as well as corporate social responsibility (CSR) norms. As a result, these companies are rapidly using investor ESG software, which is improving market sales potential.

Global ESG Software Market- By Enterprise Size

  • Large Corporations
  • SME’s

The investor ESG software market is divided into two categories based on enterprise size: big enterprises and small and medium firms. During the projection period, the small and medium enterprise category is expected to grow at a faster rate.

Global ESG Software Market- By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

Invest Europe, the private equity industry's pan-European trade association, has done a lot to increase awareness and foster the convergence of responsible investing and environmental, social, and governance concerns among its members. The major characteristic that defines Europe as the worldwide leader in the ESG field is its robust regulatory and legal structure. Sustainable finance has gone from an afterthought to a focal focus of the European fund industry, thanks to the EU Action Plan and the Sustainable Financial Disclosure Regulation (SFDR). In terms of ESG items, exactly 50 of the top 100 asset managers made dedicated ESG tagged funds, or funds focusing on sustainable investments, available. With 80% of the vote, or eight out of 10 managers, the United Kingdom came out on top, followed by Europe with 73 percent of the vote, or 19 out of 26 managers. In the United States, it was just 44% or 22 out of 50 persons. These numbers suggest that sustainable investment is now a Eurocentric phenomenon, which may be explained by the European Union's legal position on climate change and many of its citizens' more liberal viewpoints.

Increasing government activities in APAC have had an impact on ESG investing throughout the years, boosting the use of investor ESG software. Other regulatory agencies, such as the Chinese government, had set a date for required disclosures for listed companies by the end of 2020, however owing to the epidemic, this has been put back to 2021. President Xi also set a goal for China to become carbon-neutral by 2060, speeding up the transition to a low-carbon economy. As a result of the aforementioned government measures to implement sustainable investments across nations, the adoption of technology for adequate analysis is impacting the growth of the investor ESG software industry. The market for investor ESG software is growing as a result of this.

Global ESG Software Market- By Companies

  1. Accueilio
  2. Dynamo Software, Inc.
  3. Enablon
  4. EnHelix Inc
  5. Fincite GmbH
  6. FactSet Research Systems Inc.
  7. GOBY
  8. Greenstone+ Ltd
  9. Refinitiv
  10. WeSustain GmbH Esko

NOTABLE HAPPENINGS IN THE GLOBAL ESG SOFTWARE MARKET IN THE RECENT PAST

  • Business Partnership: - In 2021, Accuvio has previously announced its collaboration with the Sustainability Accounting Standards Board (SASB). SASB is a non-profit organization that establishes guidelines for corporations to disclose financially important sustainability information to their investors.
  • Product Launch: - In March 2021, Enablon and EY have unveiled an ESG management and reporting solution based on Enablon's cloud software platform to assist enterprises to manage and reporting ESG data from end to end.
  • Business Expansion: - In 2021, Workiva Inc. announced the extension of its cloud platform's capabilities to help organizations address the fast-evolving ESG reporting landscape with a fit-for-purpose ESG solution.

Chapter 1. Global ESG-Focused Software Market – Scope & Methodology

1.1. Market Segmentation

1.2. Assumptions

1.3. Research Methodology

1.4. Primary Sources

1.5. Secondary Sources

Chapter 2. Global ESG-Focused Software Market – Executive Summary

2.1. Market Size & Forecast – (2023 – 2030) ($M/$Bn)

2.2. Key Trends & Insights

2.3. COVID-19 Impact Analysis

       2.3.1. Impact during 2023 - 2030

       2.3.2. Impact on Supply – Demand

Chapter 3. Global ESG-Focused Software Market – Competition Scenario

3.1. Market Share Analysis

3.2. Product Benchmarking

3.3. Competitive Strategy & Development Scenario

3.4. Competitive Pricing Analysis

3.5. Supplier - Distributor Analysis

Chapter 4. Global ESG-Focused Software Market Entry Scenario

4.1. Case Studies – Start-up/Thriving Companies

4.2. Regulatory Scenario - By Region

4.3 Customer Analysis

4.4. Porter's Five Force Model

       4.4.1. Bargaining Power of Suppliers

       4.4.2. Bargaining Powers of Customers

       4.4.3. Threat of New Entrants

       4.4.4. Rivalry among Existing Players

       4.4.5. Threat of Substitutes

Chapter 5. Global ESG-Focused Software Market - Landscape

5.1. Value Chain Analysis – Key Stakeholders Impact Analysis

5.2. Market Drivers

5.3. Market Restraints/Challenges

5.4. Market Opportunities

Chapter 6. Global ESG-Focused Software Market – By Components

6.1. Software’s

6.2. Services

Chapter 7. Global ESG-Focused Software Market – By Enterprise Size

7.1. Large Corporations

7.2. SME’s

Chapter 8. Global ESG-Focused Software Market- By Region

8.1. North America

8.2. Europe

8.3. Asia-Pacific

8.4. Latin America

8.5. The Middle East

8.6. Africa

Chapter 9. Global ESG-Focused Software Market – Key Companies

9.1. Accueilio

9.2. Dynamo Software, Inc.

9.3. Enablon

9.4. EnHelix Inc

9.5. Fincite GmbH

9.6. FactSet Research Systems Inc.

9.7. GOBY

9.8. Greenstone+ Ltd

9.9. Refinitiv

9.10. WeSustain GmbH Esko

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