Global ESG Software Market Grows at a Steady CAGR of 12.5%

Introduction

ESG (Environmental, Social, and Governance) software is a digital tool designed to assist organizations in monitoring, managing, and reporting their sustainability and ethical business practices. It allows companies to gather and assess data on carbon emissions, energy usage, labor standards, regulatory compliance, and corporate governance. By adopting this software, businesses can streamline sustainability efforts, enhance transparency, meet compliance mandates, and strengthen their reputation among stakeholders, including investors, customers, and regulators. The software typically features automated reporting, risk evaluation, and benchmarking against industry standards to facilitate data-driven decision-making.

The global ESG software market is expanding rapidly as organizations prioritize sustainability, regulatory compliance, and risk management. Regulatory requirements, investor expectations, and the need for transparent reporting drive rising demand for ESG adherence. Companies across various industries are adopting this software to simplify data collection, improve sustainability tracking, and support strategic decision-making. These solutions help businesses adapt to evolving ESG standards while mitigating risks and enhancing corporate credibility.

Market Dynamics

Growing investor and stakeholder demand for ESG transparency drives market growth

ESG factors are increasingly shaping investment strategies, with institutional investors and stakeholders calling for greater corporate transparency and accountability. Companies are pressured to disclose their sustainability initiatives, governance structures, and social responsibility efforts to attract investors and maintain credibility. The rise of ESG-focused investment funds encourages businesses to integrate ESG principles into their operations. Transparent ESG reporting strengthens investor confidence and helps organizations enhance their long-term financial and reputational standing.

• In 2022, the Global Sustainable Investment Alliance (GSIA) reported that sustainable investment assets reached USD 30.3 trillion, highlighting the software's importance in enabling thorough sustainability reporting.

Furthermore, the adoption of cloud-based ESG software is surging due to its scalability, accessibility, and seamless integration with enterprise systems. These platforms support real-time data gathering, analysis, and reporting, allowing businesses to manage ESG initiatives efficiently across multiple locations. Cloud solutions provide enhanced security, automation, and compliance tracking while reducing IT infrastructure costs.

Expansion in ESG aftermarket services and consulting creates tremendous opportunities

The increasing demand for ESG consulting and managed services presents a significant opportunity for software providers. As businesses seek expert guidance to navigate complex compliance landscapes, ESG consultants assist in crafting tailored sustainability strategies, refining reporting frameworks, and ensuring compliance with evolving regulations. Managed service providers (MSPs) offer continuous monitoring, data analytics, and automation, enabling businesses to enhance ESG performance efficiently.

Additionally, as stakeholder expectations grow, enterprises invest in ESG-driven risk management solutions to align with investor demands and corporate social responsibility objectives. Software providers can capitalize on this trend by offering integrated solutions that combine technology with expert consultancy. Companies with robust ESG frameworks are more likely to attract institutional investors and gain a competitive edge in global markets.

• For example, the Environmental Finance Report projects that the ESG consulting market will reach USD 12 billion by 2027, creating a significant opportunity for software providers offering integrated solutions.

Regional Analysis

North America dominates the ESG software market due to stringent regulatory policies, increasing investor focus on sustainability, and the rapid adoption of cloud-based technologies. Regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) are enforcing strict ESG disclosure requirements, compelling companies to implement advanced software solutions for compliance and transparency. Furthermore, growing stakeholder expectations for sustainable business practices drive organizations to adopt reporting tools. The widespread use of cloud technology accelerates market growth, allowing businesses to streamline data collection, analytics, and reporting with scalable, real-time solutions that improve decision-making and regulatory adherence.

• For instance, according to the U.S. SEC, new ESG reporting mandates will apply to thousands of companies, driving demand for ESG software solutions.

Key Highlights

• The global ESG software market size was worth USD 1.92 billion in 2024 and USD 2.16 billion in 2025. It is estimated to reach an expected value of USD 5.54 billion by 2033, growing at a CAGR of 12.5% during the forecast period (2025-2033).
• Based on Component, the global market is divided into Software and Services. The Software owns the highest market share.
• Based on Deployment Mode, the global market is divided into Cloud-based, On-premises, and Hybrid. The Cloud-based owns the highest market share.
• Based on Enterprise Size, the global market is divided into Large Enterprises and Small & Medium Enterprises (SMEs). The Large Enterprises own the highest market share.
• Based on End-User Application, the global market is divided into ESG Compliance & Regulatory Reporting, Sustainability Performance Monitoring, Risk & Impact Assessment, Investor & Stakeholder Reporting, and Supply Chain Transparency & Management. The ESG Compliance & Regulatory Reporting owns the highest market share.
• Based on Industry Vertical, the global market is divided into Energy & Utilities, Banking, Financial Services, and Insurance (BFSI), Manufacturing, IT & Telecommunications, Healthcare & Pharmaceuticals, Retail & Consumer Goods, Transportation & Logistics, Government & Public Sector, Real Estate & Construction, Agriculture & Food Industry. The Banking, Financial Services, and Insurance (BFSI) owns the highest market share.
• Based on region, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America dominates the global market.

Competitive Players

1. IBM Corporation
2. SAP SE
3. Workiva Inc.
4. Wolters Kluwer
5. Nasdaq ESG Solutions
6. MSCI Inc.
7. S&P Global Inc.
8. Refinitiv (a London Stock Exchange Group company)
9. Enablon (a Wolters Kluwer company)
10. Intelex Technologies
11. Diligent Corporation
12. Cority Software Inc.
13. Sustainalytics (a Morningstar company)
14. Greenstone+ Ltd.
15. EcoVadis

Recent Developments

• In February 2025, Cologne-based green tech startup Planted secured €5 million in seed funding to enhance its AI-driven ESG software. The AI-powered software automates data extraction and impact analysis, potentially saving users up to 75% of their time. Several investors backed the funding round, including TechVision Fonds and WENVEST Capital. Planted aims to turn CSRD obligations into opportunities by enabling companies to focus on effective decarbonization measures.
• In January 2025, EQS Group acquired Daato Technologies, a sustainability software provider. This acquisition aims to enhance EQS Group's ESG management capabilities, providing clients with an "all-in-one" solution to navigate increasing ESG regulations such as CSRD, ESRS, the EU Taxonomy, and more. The merger seeks to streamline sustainability compliance processes and reduce customer operational burdens by automating and integrating all compliance processes onto a single platform.

Segmentation

1. By Component
   1. Software
   2. Services
2. By Deployment Mode (2021-2033)
   1. Cloud-based
   2. On-premises
   3. Hybrid
3. By Enterprise Size
   1. Large Enterprises
   2. Small & Medium Enterprises (SMEs)
4. By End-User Application (2021-2033)
   1. ESG Compliance & Regulatory Reporting
   2. Sustainability Performance Monitoring
   3. Risk & Impact Assessment
   4. Investor & Stakeholder Reporting
   5. Supply Chain Transparency & Management
5. By Industry Vertical
   1. Energy & Utilities
   2. Banking, Financial Services, and Insurance (BFSI)
   3. Manufacturing
   4. IT & Telecommunications
   5. Healthcare & Pharmaceuticals
   6. Retail & Consumer Goods
   7. Transportation & Logistics
   8. Government & Public Sector
   9. Real Estate & Construction
   10. Agriculture & Food Industry
6. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa