Investor ESG Software Market to grow by USD 976 Million (2025-2029), driven by rising corporate data volumes, Report on how AI is redefining the market landscape - Technavio

NEW YORK, Feb. 5, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global Investor ESG software market size is estimated to grow by USD 976 million from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  15.7%  during the forecast period. Steady growth in corporate data volumes is driving market growth, with a trend towards emergence of analytics in investor esg software. However, high initial capital investments  poses a challenge. Key market players include Anthesis Consulting Group, Conservice, Cority Software Inc., Diginex, Diligent Corp., Dynamo Software Inc., Emex Software Ltd., Fincite GmbH, Intelex Technologies ULC, International Business Machines Corp., Locus Technologies, Metrix Software Solutions Pty Ltd., Nasdaq Inc., Novisto Inc., PricewaterhouseCoopers LLP, Refinitiv, Sphera Solutions Inc., Vervantis Inc., Wolters Kluwer NV, and Workiva Inc..

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Market Driver

The Investor ESG (Environmental, Social, and Governance) Software Market is witnessing significant growth due to increasing investor and stakeholder demand for sustainability programs. ESG software helps companies manage carbon emissions, diversity, regulatory requirements, and sustainability reporting. Startups like Sustainalytics, MSCI, SASB, GRI, and Morningstar Sustainalytics lead the market. SMEs in IT and ITeS, Manufacturing, Energy and Utilities, Retail, and Technology sectors are adopting ESG software for EHS (Environment, Health, and Safety) management, ERP (Enterprise Resource Planning) systems, and CRM (Customer Relationship Management) platforms. Cloud-based deployment is popular for cost efficiency and real-time reporting. ESG data management and risk management are crucial for transparency and commitment to sustainability. ESG software vendors provide user-friendly interfaces, data analytics, and IoT sensors for sustainability practices and emissions reporting. ESG regulations and economic uncertainties drive the need for ESG software to ensure compliance and improve performance tracking. 

In today's business landscape, energy efficiency and regulatory compliance are top priorities for enterprises in the energy sector. With declining energy costs and increasing penalties for inefficient devices, companies are seeking smarter ways to manage energy consumption. Real-time data analytics and big data technologies are proving to be valuable tools in this regard. These technologies enable predictive modeling, helping organizations reduce operating expenses and adhere to regulatory requirements. By leveraging real-time data, businesses can optimize energy usage, minimize costs, and improve their carbon footprint. In a competitive market, access to accurate and timely information is essential for success. 

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Market Challenges

• The Investor ESG (Environmental, Social, and Governance) Software Market is experiencing significant growth due to increasing investor and stakeholder demand for transparency and commitment to sustainability. Companies in various sectors such as finance, retail, energy, and technology are under pressure to manage their ESG programs effectively. ESG software vendors offer solutions for ESG data management, risk management, sustainability reporting, and performance tracking. Challenges include regulatory requirements, carbon emissions, diversity, and compliance with industry standards. SMEs and large corporations alike are adopting cloud-based solutions for real-time reporting and data analytics. ESG software helps companies collect and manage ESG data, engage stakeholders, and report on sustainability initiatives, metrics, and practices. Vendors like Sustainalytics, MSCI, SASB, GRI, and Morningstar Sustainalytics provide ESG reporting software and climate change software. EHS, ERP systems, CRM, HCM platforms, and corporate boards are also integrating ESG strategies. IoT sensors and ESG activities data collection are essential for accurate and efficient resource management. Economic uncertainties and cost efficiency are driving the adoption of ESG software, providing a solid return on investment.
• The investor ESG software market faces significant challenges in its expansion. The high initial costs of replacing existing infrastructure with EHS infrastructure is a major hurdle for SMEs and industries. This capital-intensive investment restricts market growth. Furthermore, integrating ESG software with ERP systems is another challenge. Given the extensive use of ESG standards in enterprise operations, the greater benefits of EHS solutions can be realized by seamlessly integrating them with ERP systems. However, achieving this integration poses a complex technical challenge, which may hinder market development.

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Segment Overview 

This investor esg software market report extensively covers market segmentation by  

• Component
• Software
• Services
• Deployment
• On-premises
• Cloud
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

1.1 Software-  The investor Environmental, Social, and Governance (ESG) software market has experienced significant growth in 2024, driven by the software industry. ESG software simplifies the process of collecting, analyzing, and publishing ESG data, making it an essential tool for investors as sustainability and responsible investing gain popularity. These solutions enable investors to assess a company's ESG performance, leading to more informed investment decisions that align with ethical and environmental standards. In response, software providers offer advanced ESG software, including data gathering and integration, predictive analytics, and visualization tools. The market's expansion is fueled by increasing regulations and investor demands for ESG transparency, making it a crucial component of investment strategies worldwide during the forecast period.

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Research Analysis

The Investor ESG (Environmental, Social, and Governance) Software market is witnessing significant growth due to the increasing importance of sustainability programs for organizations across various industries. ESG software enables companies to manage and report on their carbon emissions, diversity, and ethical practices, among other sustainability metrics. MSCI, SASB, and GRI are leading providers of ESG frameworks and standards. Cloud deployment is a popular choice for ESG reporting software due to its flexibility and scalability, making it accessible to both SMEs and Large Enterprises. ERP (Enterprise Resource Planning) systems are also integrating ESG functionality to streamline reporting. The finance sector is a key adopter of ESG software, recognizing the importance of transparency and environmental impact in investment decisions.

Market Research Overview

The Investor ESG (Environmental, Social, and Governance) Software Market is witnessing significant growth due to increasing sustainability programs, regulatory requirements, and investor pressure. ESG software helps companies manage and report on their carbon emissions, diversity, and other sustainability initiatives. It includes climate change software, ESG data management, ESG risk management, and sustainability reporting solutions. Deployment options range from on-premises to cloud-based, making it accessible to SMEs and large corporations alike. Sectors like IT and ITeS, manufacturing, energy and utilities, retail, finance, and technology are adopting ESG software to enhance their sustainability practices and transparency. ESG software vendors provide user-friendly interfaces for data collection, performance tracking, stakeholder engagement, and real-time reporting. ESG metrics, such as energy consumption, water usage, waste generation, air quality, and carbon footprint, are essential for companies to understand their environmental impact and social responsibilities. ESG software also helps in data validation, normalization, and compliance with industry standards and regulations. The public sector and public interest are increasingly demanding transparency and commitment to sustainability, making ESG software an essential tool for corporations to stay competitive and responsible.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Component
• Software
• Services
• Deployment
• On-premises
• Cloud
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio