The investor ESG software market size was valued at US$ 1.08 billion in 2024 and is expected to reach US$ 3.36 billion by 2031; it is estimated to record a CAGR of 17.6% from 2024 to 2031. The integration of ESG software with generative AI is likely to bring new trends to the market in the coming years.
The investor ESG software market has witnessed significant growth due to increasing demand for responsible investing, rising concerns over climate change, social issues, and governance practices, as well as the need for transparency and compliance with evolving global ESG standards. The demand for investor ESG software is driven by institutional investors, asset managers, and financial institutions seeking to integrate ESG factors into their decision-making processes. Factors such as the focus on corporate social responsibility and growing investor demand for accurate ESG data and analytics are also driving the investor ESG software market. Furthermore, the focus on innovation in ESG software and integration with generative AI are creating lucrative opportunities for the growth of the investor ESG software market players during the forecast period.
Organizations utilize investor ESG software to tailor questionnaires and streamline data collection, enabling the aggregation of precise and comparable ESG performance metrics. This software-as-a-service platform enhances ESG initiatives, helping businesses maximize value and evaluate investments. ESG investing, or sustainable investing, focuses on identifying factors that define responsible, sustainable, or ethical investments. ESG software is used by both investors and capital market firms to assess corporate behaviors, providing insights to forecast future financial performance. Many companies implement these software solutions to mitigate risks related to their operations, business relationships, assets, and investments
ESG platforms support investment analysis, providing more informed and strategic investment decisions. Investor ESG software is customized to help investors assess, track, and manage the ESG performance of their portfolios and investment decisions. These platforms provide data-driven insights, analytics, and reporting on various ESG metrics, enabling investors to align their investment strategies with sustainability goals and regulatory requirements.
The enactment of the Corporate Sustainability Reporting Directive (CSRD) represents a major regulatory shift significantly driving the demand for Investor ESG software. The CSRD, which replaced the Non-Financial Reporting Directive (NFRD) in January 2023, dramatically expands the scope of mandatory ESG reporting within the European Union. Under the NFRD, ~11,000 large companies were required to disclose ESG information. However, the CSRD extends this obligation to approximately 50,000 companies, which accounts for ~75% of the total turnover of all EU companies. This includes large corporations as well as listed small and medium-sized enterprises (SMEs), significantly broadening the scope of ESG disclosures and compliance requirements. The CSRD mandates that companies must disclose detailed social, environmental, and governance information, covering areas such as human rights, climate risks, biodiversity, and supply chain transparency. This comprehensive reporting framework ensures that companies address and mitigate adverse environmental and human rights impacts within Europe and other regions. By enforcing these new rules, the CSRD aims to enhance the consistency, comparability, and reliability of ESG data, making it more transparent and accessible to investors, regulators, and the general public.
The focus on innovation in ESG software is expected to create numerous opportunities for the investor ESG software market growth during the forecast period. As the demand for transparent, accurate, and actionable ESG data continues to rise, investors are increasingly relying on advanced ESG software solutions to make informed investment decisions. The evolving landscape of environmental, social, and governance (ESG) factors requires investors to access comprehensive, real-time insights that can only be provided by innovative software tools. Innovation in ESG software involves the integration of cutting-edge technologies such as artificial intelligence (AI), which are reshaping the way ESG data is collected, processed, and analyzed. For instance, in April 2024, ESG data solutions provider ESGgo announced the launch of its One-Click Sustainability Report, an AI-powered tool designed to help companies effortlessly generate sustainability reports in line with regulatory frameworks and stakeholder expectations. ESGgo states that this new solution simplifies the sustainability reporting process for organizations, ensuring compliance with evolving standards. The platform's AI-driven data engine processes both numerical and text-based information, calculates emissions, and synthesizes datasets to create customized sustainability reports. These advancements allow investors to monitor a company's sustainability performance more efficiently as well as predict future ESG risks and opportunities based on real-time data. The ability to process vast amounts of data, often coming from disparate sources, and synthesize it into actionable ESG metrics is a significant benefit for investors looking for transparency and reliability.
Key segments that contributed to the derivation of the investor ESG software market analysis are component, services, and enterprise size.
The regional trends and factors influencing the Investor ESG Software Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Investor ESG Software Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 1.08 Billion |
| Market Size by 2031 | US$ 3.36 Billion |
| Global CAGR (2024 - 2031) | 17.6% |
| Historical Data | 2021-2023 |
| Forecast period | 2021-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Investor ESG Software Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Investor ESG Software Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The investor ESG software market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the investor ESG software market are listed below:
(Source: Cority Software Inc, Press Release, August 2024)
(Source: Sphera Solutions, Inc., Press Release, January 2024)
The "Investor ESG Software Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Investor ESG Software Market
Focus on corporate social responsibility, and surge in demand for accurate ESG data and analytics among investors are the major factors that propel the global investor ESG software market.
The global investor ESG software market is expected to reach US$ 3.36 billion by 2031.
The global Investor ESG software market was estimated to be US$ 1.08 billion in 2024 and is expected to grow at a CAGR of 17.6% during the forecast period 2025 – 2031.
The key players holding majority shares in the global investor ESG software market are MSCI, FactSet, Workiva Inc., SAP SE, and Bloomberg Finance L.P.
The incremental growth expected to be recorded for the global investor ESG software market during the forecast period is US$ 2.27 billion.
Integration with Generative AI is anticipated to play a significant role in the global investor ESG software market in the coming years.