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ESG Reporting Software Market worth $1.5 billion by 2027- Exclusive Report by MarketsandMarkets

Global Association for ESG

19 Dec 2022

The global ESG Reporting Software Market to grow from USD 0.7 billion in 2022 to USD 1.5 billion by 2027..

According to a recent study by MarketsandMarketsTM, the global ESG Reporting Software Market will increase from USD 0.7 billion in 2022 to USD 1.5 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 15.9% over the forecast period. The rise in cloud-based solution and service usage across verticals, increased government investment in this market across geographies, an increase in corporate data volume, and reliable corporate disclosures are the main factors fueling the growth of the ESG Reporting Software Market.

Market size for the Large Enterprises sector is anticipated to increase significantly over the forecast period

Large organizations are defined as companies that have more than 1,000 employees. "Environmental" in the context of major organizations refers to how a firm is exposed to and manages risks and opportunities to address issues related to climate change, the shortage of natural resources, pollution, waste, and other environmental variables, as well as its own environmental impact. The term "social" refers to the analysis of a company's economic ties and values through concerns about the supply chain, product quality and safety, worker welfare, diversity and inclusion policies, and slave labor. "Governance" takes into account a company's corporate structure, board diversity, executive compensation, resilience to events and reactivity to them, as well as its policies and procedures regarding lobbying, political donations, bribery, and corruption. The American international investment management company Blackrock, which is the largest shareholder in the world, has told the market that it considers sustainability risk, in particular climate risk, to be an investment risk. Sustainability is therefore a key element of the investment approach in cases where corporate disclosures are insufficient to make a thorough assessment or a company has not provided a credible plan to transition its business model to a low-carbon economy, including short, medium, and long-term targets.

Government and public sector to record significant growth during the forecast period

However, initial measurement and attribution of ESG risks tend to be best captured by allocating them to each sector. Governments can assist with the management and transition costs of ESG risks and exert significant influence over outcomes through their policy and regulatory roles. consistent ESG standards and regulatory frameworks for the public and private sectors, such as SASB, TCFD, or GRI. Public bodies are strongly motivated to increase their transparency regarding their impact since the goals of the public sector are tied to the welfare and interest of the general public. Governments can show their progress in decreasing emissions through sustainability reports, which have inspired an unprecedented level of public interest in climate change. Since the public sector is typically the largest economic sector, it has a big effect on the environment. It performs two tasks: first, it provides necessary services like waste collection, public transit, the armed forces, and healthcare, all of which contribute to climate change.

Asia Pacific is projected to record the highest market size during the forecast period

One of the marketplaces for ESG Reporting software that is expanding quickly is Asia Pacific, where there are several SMEs spread throughout numerous nations. The region's increasing levels of urbanisation, technical innovation, and backing from the government for the digital economy are key drivers of technological growth. The predicted term is expected to see rapid growth in the region. Furthermore, the presence of manufacturing facilities in the Asia Pacific area is likely to create numerous potential prospects during the projection period. Regarding cloud adoption in Asia Pacific, South Korea, Japan, Singapore, India, Australia, and China have emerged as the indisputable leaders. Another potential market in the Asia Pacific for ESG Reporting software is Australia, which has policies that are supportive of international commerce. The growing use of ESG Reporting software solutions in this area is a result of Asia's improving economic outlook, which appears to be favourable for businesses. Additionally, ESG Reporting software gives businesses the ability to fix operational problems, boost customer happiness, and allocate duties right away. A further factor driving the expansion of the ESG Reporting Software Market in this region is the rising SaaS trend.

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