Global ESG Reporting Market is expected to witness a healthy growth rate of ~15% by 2027 : Wolters Kluwer, PwC, Workiva, Nasdaq, Diligent, Emex, Novsito, diginex

Environmental, social, and governance (ESG) data measures a company's non-financial performance and sustainability practices.

The three pillars of ESG includes:
• Environmental Data such as the amount of greenhouse gases emitted by a company into the atmosphere, energy usage data, water usage data, waste reduction data, carbon footprint reduction data, waste reduction data.
• Social Data such as fair pay and living wages data, adherence to labor laws, workplace health & safety, equal employment opportunity.
• Governance Data such as corporate governance, compliance, ethical business practices, accounting transparency and integrity.

ESG metrics can be categorized into quantitative and qualitative. Quantitative metrics include numerical data that can be directly measured and compared such as energy usage, water usage, greenhouse gas emissions, energy usage, while qualitative metrics include non-numerical data that are relatively harder to measure and compare such as the company's labor practices, commitment to diversity, equity and inclusion (DEI)and others. This data is used to generate reports that demonstrate a company's ability to implement ESG initiatives successfully.

Growing Demand from Investors and Companies Propels the Growth of the Global ESG Reporting Market

ESG metrics are increasingly being used by investors to evaluate businesses they intend to acquire or invest in. ESG software tracks ESG initiatives and investors use ESG reports to screen investments, align investments, and avoid companies with the risk of environmental damage, corruption, and social missteps. ESG reporting is also being used by companies/organizations to report their efforts and progress on climate change, corporate social responsibility (CSR) initiatives, regulatory compliance, goal tracking and governance and sustainability.

"Nowadays, investors while examining companies look for ESG disclosures to steer their investment decision-making. Investors perceive that organizations that perform well on ESG metrics are relatively less risky, better positioned for long-term growth, and better equipped for uncertainty."-Marketing Director, ESG Reporting Software Provider, USA

Growing Prominence of Artificial Intelligence (AI) offers Exclusive Transformative Opportunities for Organizations in their Sustainability Journey

The introduction of AI is revolutionizing the entire ESG landscape. It is increasingly being used to collect and analyze vast amounts of ESG data, automate tasks, identify patterns, and make predictions. AI is being used to assess a company's exposure to ESG risks, such as climate change, labor practices, and corporate governance. It can also used to automate compliance tasks, such as reviewing regulatory filings and identifying compliance gaps. Citing the lucrative prospects of the ESG reporting market, players operating in the global market have also introduced a number of AI-related products.

Regulatory rules drive the demand for ESG disclosures

There are a growing number of regulations globally requiring organizations to disclose and report on ESG initiatives, sustainability, and governance. Globally, regulators are finalizing rules which need companies to disclose information on their ESG footprint in their annual reports and mainstream regulatory filings.

Some of the ESG regulations that are mandatory and currently being implemented are as follows:

• In the U.S., the US SEC Climate Guidance requires public companies to disclose material business risks to investors, transparently through regular filings with the SEC, including climate change risks that may develop on their business.

Competitive Landscape Analysis: ESG Reporting Market

Some of the key and established players operating in the global ESG reporting market are Wolters Kluwer, PwC, Workiva, Nasdaq, Cority/Greenstone, Diligent, Emex, Novsito, diginex, Sphera, IsoMetrix Novem ESG, C3 AI.

Organic and Inorganic Growth Strategies Adopted by the Leading Market Players to Establish Their Foothold in the ESG Reporting Market

All the key players operating in this global market are adopting organic and inorganic growth strategies such as launching new products, acquiring related firms, and entering into collaborations to garner a higher market share.

For instance,

In July 2023, Wolters Kluwer launched TeamMate+ ESG. The solution provides easy access to essential ESG reporting standards and enables auditors to provide assurance over ESG reporting.
In May 2023, leading global enterprise Environmental, Health, and Safety (EHS) software provider Cority, acquired Greenstone, a sustainability & ESG reporting software provider.

The global ESG Reporting Market is expected to gain a further momentum in the upcoming years due to mounting pressure on companies to measure, disclose, and make progress on ESG initiatives, technological advancements in ESG reporting software, and aggressive organic and inorganic growth strategies adopted by the leading players operating in the ESG Reporting market.

Explore Detailed Insights on ESG Reporting Market with a Sample Report Copy @ https://meditechinsights.com/esg-reporting-market/

Ruta Halde
Associate, Medi-Tech Insights
+32 498 86 80 79
info@meditechinsights.com
https://meditechinsights.com/

Medi-Tech Insights is a healthcare-focused business research & insights firm. Our clients include Fortune 500 companies, blue-chip investors & hyper-growth start-ups. We have completed 100+ projects in Digital Health, Healthcare IT, Medical Technology, Medical Devices & Pharma Services.

This release was published on openPR.