Investor ESG software market is receiving high momentum across the world. increasing government initiatives to promote ESG investment is influencing the growth of the market. Environmental, Social, and Governance (ESG) investing has become popular over the last decade, with some estimation that the value of professionally managed portfolios that incorporate key elements of ESG evaluations to surpass US$ 17.5 trillion globally. Moreover, the value of ESG-related traded investment products available to institutional and retail investors has surpassed US$1 trillion and is rapidly increasing across financial markets. Increasing government initiatives across regions such as Europe, APAC, and North America is influencing in ESG investing over the years, which, in turn is promoting the adoption of investor ESG software.
Refinitiv, Enablon (Wolters Kluwer N.V.), FactSet Research Systems Inc., Goby, and Greenstone+ Ltd – Prominent Market Participants in Investor ESG Software Market
In March 2021, the European Union laid down regulations that would enforce fund managers who market environmental, social, and governance (ESG) financial products to show exactly how they meet the specific standards. The Sustainable Finance Disclosure Regulation (SFDR) is a part of the EU’s Green Deal efforts to encourage genuine sustainable investment by requiring ESG products, to reveal how their sustainably labelled products can fix climate change. Additionally, other government bodies such as the Chinese government had set a deadline by the end of 2020 for mandatory disclosures for listed firms, but due to the pandemic, this has been pushed to 2021. Further, President Xi declared China’s target of becoming carbon-neutral by 2060, accelerating the transition to a low-carbon economy. Thus, the above-mentioned government initiatives to implement sustainable investments across the countries are influencing the adoption of technologies for proper analysis, thereby propelling the growth of the investor ESG software market.
The global investor ESG software market has been segmented into five major regions: North America, Europe, APAC, MEA, and SAM. Europe holds the dominant share in the investor ESG software market, whereas APAC is expected to be the fastest-growing region in the global market. The European investor ESG software market is further segmented into France, Germany, Russia, Italy, the UK, and the Rest of Europe. Europe is a diverse market with a group of more than 40 countries in it. Considering Environmental, Social, and Governance (ESG) opportunities and risks as individuals, corporations, and governments address the issue of global sustainability not only drives the development of better companies, but also helps investors to safeguard long-term success and value. Responsible investing has become a crucial problem for private equity fund managers and their investors in this climate. ESG factors play a significant role in their initial investment decisions as well as the subsequent growth of companies. Invest Europe, the pan-European organization for the private equity industry, has done a lot to raise awareness and encourage the convergence of responsible investment and ESG issues among its members. Europe’s strong regulatory and legislative framework is the primary strength that distinguishes it as the global leader in the ESG space. The EU Action Plan and the Sustainable Financial Disclosure Regulation (SFDR) mark a watershed moment in the sector, transforming sustainable finance from an afterthought to a focal point of the European fund industry. Dedicated ESG labelled funds, or funds focused on sustainable investments, were made available by exactly 50 of the top 100 asset managers in terms of availability of ESG items.
The top five companies in the investor ESG software market include Refinitiv, Enablon (Wolters Kluwer N.V.), FactSet Research Systems Inc., Goby, and Greenstone+ Ltd. The above listing of key players is derived by considering multiple factors such as overall revenue, current investor ESG software portfolio, new product launches, market initiatives, investment in technology up-gradation, mergers & acquisitions, and other joint activities. There are various other notable players in the global investor ESG software market ecosystem such as Accuvio; Dynamo Software, Inc.; EnHelix Inc; Fincite GmbH; and WeSustain GmbH amongst others.
The COVID-19 pandemic has shaken several industries. The tremendous growth in the spread of the virus has urged governments worldwide to impose strict restrictions on vehicles and human’s movement. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has affected economies and countless industries in various countries. The lockdown imposition has resulted in lesser production of commodities, goods, and services. Manufacturing, automotive, semiconductor & electronics, oil & gas, mining, aviation, and other industries have witnessed a decline in their operations due to the temporary shutdown of activities. Governments of several countries across the world have imposed lockdowns to curb the spread of the disease. Hence, enterprises are adopting investor ESG software for extracting sustainable investment profiles of customers during the pandemic outbreak. Investor ESG software was extensively used by organizations across both developed and developing countries during the pandemic outbreak, to accelerate sustainable & responsible growth, and mitigate enterprise risk. This in turn is expected to enhance the growth of the investor ESG software market during the COVID-19 outbreak.
