ESG Reporting Software Market worth USD 3.92 Billion by 2032 | Exclusive Report by Coherent Market Insights

Burlingame, CA, Sept. 04, 2025 (GLOBE NEWSWIRE) -- ESG Reporting Software Market to Hit USD 1.29 Billion by 2025 Amid Mounting Regulatory Pressure

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 anticipated to experience substantial growth over the forecast period, driven by rising awareness among organizations about sustainability and Environmental, Social, and Governance (ESG) reporting. The increasing need to measure, monitor, and disclose ESG performance is fueling demand for specialized software solutions. Moreover, as investors place greater emphasis on ESG criteria in their investment decisions, companies are compelled to enhance their ESG monitoring and reporting capabilities.

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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 by 2032.

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 Fueling 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 helps businesses keep track of their sustainability efforts and follow rules by automatically collecting, analyzing, and reporting data.

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.

Using 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.

In addition, ESG platforms deal with sensitive internal information, which makes them targets for hacks, cyberattacks, and misuse of data. These security risks could slow down the ESG reporting software market growth in the coming years.

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Rising Emphasis on Risk Management Creating Growth Opportunities

The increasing focus on managing and reducing risks is likely to create lucrative growth opportunities for ESG reporting software companies. ESG reporting software helps organizations identify and reduce different ESG-related risks, such as the effects of climate change and failing to meet regulations.

Companies can use ESG reporting software to track progress on their sustainability initiatives and identify areas for improvement. Similarly, it helps them manage risks, improve governance, and increase stakeholder transparency.

Impact of AI on the ESG Reporting Software Market

Artificial intelligence (AI) is becoming a powerful tool in the ESG reporting software market. It improves transparency, trust, and operational agility in corporate sustainability.

Use of AI in 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 make collecting and checking data easier. They cut down mistakes and speed up reporting. This improved efficiency is important because global rules, like the EU’s CSRD and the SEC’s climate regulations, are demanding more consistent and audit-ready ESG reports.

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 popularity, thanks to their 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 forthcoming 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 choosing to aim for net-zero emissions, cut their carbon footprints, and improve their governance. These sustainability efforts are boosting demand for ESG reporting software.

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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 makes over 50,000 EU companies report on their impact on the environment, society, and how they’re run, starting gradually 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. SEC wants public companies to share information about how climate change could affect them and report their 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 now using AI and machine learning to automatically gather, study, and report their environmental, social, and governance (ESG) data. 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.

Key Developments

In April 2025, Zevero launched a new AI-powered ESG reporting tool called the ESG Disclosure Reporting Solution, which makes ESG reporting easier by using AI to pull data from documents. This tool works with major global standards like 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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