ESG Reporting Software Market Expected to Reach USD 3.92 Billion by 2032

Growing Emphasis on Risk Management and Mitigation to Propel Global Market Beyond US 3.92 Billion by 2032 at 17.2% CAGR - Coherent Market Insights

According to Coherent Market Insights, The Global ESG Reporting Software Market is estimated to be valued at USD 1.29 Bn in 2025 and is expected to reach USD 3.92 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 17.2% from 2025 to 2032. The market is projected to experience substantial growth during the forecast period, driven by rising organizational awareness of sustainability and Environmental, Social, and Governance (ESG) reporting. The growing emphasis on measuring, monitoring, and disclosing ESG performance is fueling demand for dedicated ESG software solutions. Furthermore, investors are placing greater importance on ESG considerations when making investment decisions, further accelerating market expansion.

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Global ESG Reporting Software Market Key Takeaways

According to Coherent Market Insights (CMI), the global ESG reporting software market size is slated to increase at a robust CAGR of 17.2%, reaching USD 1.29 Bn in 2025 and USD 3.92 Bn in 2025.

Based on offering, software segment is expected to account for nearly four-fifths of the global ESG reporting software market share in 2025.

By deployment type, cloud segment is set to hold a prominent market share of nearly 3/5 in 2025.

As per CMI's new ESG reporting software market analysis, North America is projected to maintain its monopoly, accounting for over two-fifths of the global market share in 2025.

Asia Pacific ESG reporting software industry is poised to register fastest growth during the forecast period.

Regulatory Pressure and Compliance Requirements Fuelling Market Growth

Coherent Market Insights' latest ESG reporting software market research report highlights major factors driving industry growth. Increasing regulatory requirements and compliance mandates is one such key factor.

Governments and regulatory bodies globally are introducing stringent ESG regulations. A few prime examples include the SEC climate disclosure rules in the United States and EU's CSRD. These mandates are compelling companies to adopt ESG reporting tools, thereby driving market growth.

ESG reporting software enables organizations to manage, track, and report their ESG metrics. It makes it easier for businesses to monitor their sustainability efforts and comply with regulations by automating data collection, analysis, and reporting processes.

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High Implementation Costs and Data Security Concerns Limiting Market Growth

The future ESG reporting software market outlook looks bright. However, growing concerns over data privacy and high implementation costs could somewhat constrain market expansion over the forecast period.

Implementing ESG reporting software with existing systems like CRM and ERP can be complex and expensive. This deters some small and medium enterprises from opting for these ESG reporting platforms, dampening overall ESG reporting software market demand.

Moreover, ESG platforms handle sensitive internal data, making them vulnerable to breaches, cyberattacks, and data misuse. These security concerns could also hamper the ESG reporting software market growth in the coming years.

Rising Emphasis on Risk Management Creating Growth Opportunities

The growing focus on risk management and mitigation is expected to create lucrative growth opportunities for ESG reporting software companies. This is because ESG reporting software empowers organizations to identify, monitor, and mitigate various ESG-related risks, including climate change impacts and regulatory non-compliance.

Companies can use ESG reporting software to track progress on their sustainability initiatives and identify areas for improvement. Similarly, it enables them to proactively manage potential risks, strengthen internal governance, and enhance transparency with stakeholders.

Impact of AI on the ESG Reporting Software Market

Artificial intelligence (AI) is transforming ESG reporting software from a compliance burden into a strategic tool. This advanced technology elevates transparency, trust, and operational agility in corporate sustainability.

The infusion of AI into the ESG reporting software landscape is accelerating a shift from manual, retrospective compliance toward proactive, strategic sustainability management. This shift enables organizations to effectively manage sustainability goals and make informed decisions in real time.

AI-powered platforms are streamlining data collection and validation. They significantly reduce errors and shorten reporting timelines. This heightened efficiency is vital as global regulatory frameworks like the EU's CSRD and SEC climate rules raise the bar for standardized, audit-ready ESG disclosures.

Emerging ESG Reporting Software Market Trends

There is a growing trend of using artificial intelligence and machine learning in ESG reporting platforms. These advanced technologies significantly improve data accuracy, automate data gathering, and enhance predictive insights for ESG performance.

Cloud-based ESG tools are gaining immense traction globally as they offer scalability, accessibility, and lower upfront costs. Rising adoption of these cloud-based solutions is expected to boost the ESG reporting software market value during the assessment period.

Increasing investor demand for transparency is acting as a catalyst, triggering growth of the ESG reporting software market. Stakeholders, asset managers, and institutional investors increasingly prioritize ESG performance when making investment decisions. This is where ESG reporting software steps in, helping companies meet transparency expectations.

Many organizations are voluntarily committing to net-zero targets, reducing their carbon footprints, and enhancing governance practices. These corporate sustainability initiatives are driving increased demand for ESG reporting software as it supports goal setting, performance tracking, and reporting progress toward sustainability commitments.

Analyst's View

"The global ESG reporting software industry is set for robust growth, owing to increasing regulatory requirements, heightened compliance demands, and a growing focus on corporate sustainability," said Monica Shevgan, a senior analyst at CMI.

Current Events and Their Impact on the ESG Reporting Software Market

Event

Description and Impact

EU Corporate Sustainability Reporting Directive (CSRD) Implementation

* Description: The CSRD mandates ESG reporting for over 50,000 companies operating in the EU, phased in from 2024 to 2026.

* Impact: This is significantly increasing demand for ESG reporting software in Europe, creating substantial revenue opportunities for software vendors offering EU taxonomy-compliant solutions.

US SEC Climate Disclosure Rule Development

* Description: The U.S. Securities and Exchange Commission (SEC) has proposed rules requiring public companies to disclose climate-related risks and greenhouse gas emissions.

* Impact: These proposals are fueling demand for climate-focused ESG reporting tools, particularly for carbon accounting and climate risk assessment in the United States market.

Rise of AI-Powered ESG Analytics and Automation

* Description: Companies are increasingly using artificial intelligence and machine learning to automate ESG data collection, analysis, and reporting.

* Impact: These technologies enable ESG software providers to offer automated scoring, predictive analytics, and risk management tools, driving product innovation and market differentiation.

Competitor Insights

Key companies in the ESG reporting software market report:

- Wolters Kluwer

- Cority

- Diligent Corporation

- Intelex Technologies

- Brightest Inc.

- Benchmark Digital Partners LLC

- Workiva

- Nasdaq, Inc.

- UL Solutions

- Salesforce, Inc.

- Greenstone+ Ltd.

- Sphera

- Novisto

- SAP

- Emex Software Ltd.

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Key Developments

In April 2025, Zevero launched a new AI-powered ESG reporting tool (ESG Disclosure Reporting Solution) to streamline ESG disclosures using AI-driven data extraction from documents. The new solution supports major global frameworks, including CDP, B Corp, and CSRD.

In May 2025, SAP launched new sustainability data management solutions to meet evolving needs of customers. These new solutions are aimed at helping companies collect, manage, and govern sustainability data across their value chains.

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