ESG Reporting Software Market Forecasts to 2032 – Global Analysis By Component (Software and Services), Deployment Mode (Cloud-based, On-premises), Organization Size, Application, End User and By Geography

According to Stratistics MRC, the Global ESG Reporting Software Market is accounted for $1.44 billion in 2025 and is expected to reach $5.15 billion by 2032 growing at a CAGR of 20.0% during the forecast period. A digital tool called ESG reporting software was created to assist businesses in monitoring, controlling, and disclosing their Environmental, Social, and Governance (ESG) performance. It makes it possible for businesses to gather information on a range of sustainability parameters, guarantee adherence to changing legal requirements, and generate clear, auditable ESG reports for investors and stakeholders. Typical features of the software include benchmarking, automatic reporting, data visualisation, and interaction with other business systems. ESG reporting software promotes sustainable business practices and assists organisations in showcasing their dedication to moral and responsible operations by offering actionable insights and improving accountability.

According to a 2024 poll, nearly 84% of North America’s businesses have used ESG software to increase transparency and adhere to rules.

Market Dynamics:

Driver:

Efficiency & cost benefits

Simplifying compliance and audit procedures helps businesses save time and money. Performance in sustainability and decision-making are improved by real-time data insights. The software's internal reporting features lessen the requirement for outside consultants. By making timely and accurate disclosures, it also reduces regulatory penalties. All things considered, these efficiency improvements provide firms quantifiable financial and reputational advantages.

Restraint:

Data fragmentation & quality concerns

A lack of standardisation results from the frequent collection of ESG data by organisations from different departments and systems. ESG reports lose credibility when they provide inaccurate or insufficient data. Comparing and benchmarking across sectors or geographical areas is made more difficult by this discrepancy. Inaccurate reporting and compliance concerns are further increased by poor data quality. Because of this, it is difficult for organisations to make trustworthy, transparent, and well-informed sustainability disclosures.

Opportunity:

Cloud-based SaaS accessibility for SMEs

Businesses with tight budgets can now afford its advanced features thanks to its scalable subscription arrangements. These solutions' automated upgrades and intuitive dashboards make it easier to comply with changing ESG rules. SMEs gain from customisable templates catered to industry-specific requirements and real-time data tracking. Additionally, cloud solutions improve departmental and external stakeholder collaboration. Consequently, the market for ESG reporting software is driven by the increasing use of SaaS by SMEs.

Threat:

Volatile regulations & geopolitical risks

Companies are forced to upgrade their platforms frequently due to policy changes, which raises operating costs. Adoption and growth are hindered in emerging markets by complicated compliance requirements. Geopolitical conflicts reduce the effectiveness of software by interfering with cross-border data sharing and collaboration. Vendor access to global customers and technologies is restricted by trade restrictions and sanctions. Long-term investments in ESG reporting systems are generally discouraged by these uncertainties.

Covid-19 Impact

The COVID-19 pandemic significantly accelerated the adoption of ESG (Environmental, Social, and Governance) reporting software as organizations faced increased scrutiny from stakeholders regarding sustainability and risk transparency. Disruptions in global supply chains and heightened focus on employee health and safety emphasized the need for real-time ESG data tracking and compliance. Companies turned to digital solutions to automate reporting processes, enhance resilience, and meet evolving regulatory standards. As a result, ESG reporting software became a critical tool for demonstrating corporate responsibility and long-term value creation in a post-pandemic business landscape.

The cloud-based segment is expected to be the largest during the forecast period

The cloud-based segment is expected to account for the largest market share during the forecast period, due to cost-effective deployment options for businesses of all sizes. It enables real-time data access, seamless integration, and streamlined reporting across multiple locations. Organizations benefit from enhanced data security, automated updates, and minimal IT infrastructure requirements. The flexibility of cloud platforms supports remote work and global ESG compliance efforts. As companies increasingly prioritize sustainability and transparency, the demand for cloud-based ESG solutions continues to grow.

The retail and consumer goods segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the retail and consumer goods segment is predicted to witness the highest growth rate, due to increasing demand for transparency and sustainability in supply chains. Companies in this sector face mounting pressure from consumers and regulators to disclose environmental and social impacts. ESG software helps track carbon emissions, ethical sourcing, labor practices, and waste reduction. It enables retailers to align with global sustainability standards and improve brand reputation. This growing need for responsible practices drives adoption of advanced ESG reporting tools across the segment.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share due to increasing regulatory mandates, investor pressure, and corporate sustainability initiatives. Countries like Japan, Australia, and Singapore are enforcing stricter disclosure norms, encouraging adoption across large enterprises and SMEs. Growing awareness around carbon footprint, social equity, and governance transparency also fuels demand. Moreover, digital transformation, government-backed green initiatives, and rising participation in global ESG frameworks like TCFD and GRI are pushing companies to adopt advanced ESG reporting solutions for better compliance and stakeholder engagement.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR by strong institutional investor influence, stringent SEC guidelines, and stakeholder activism. The U.S. and Canada lead with robust sustainability reporting ecosystems, especially across sectors like finance, energy, and manufacturing. Large corporations are integrating ESG tools with their ERP and data analytics systems for real-time insights and risk management. However, concerns over data accuracy, evolving regulations, and high integration costs challenge smaller players. The emphasis is on predictive analytics, materiality mapping, and AI-driven ESG tools to gain competitive and regulatory advantages.

Key players in the market

Some of the key players profiled in the ESG Reporting Software Market include Workiva, Persefoni, Watershed, Sweep, Greenly, IBM Envizi, Salesforce Net Zero Cloud, Benchmark Gensuite, Diligent ESG, Novata, AuditBoard, Cority, Intelex, Greenstone, Novisto, Emex, Anthesis and Wolters Kluwer.

Key Developments:

In January 2024, Workiva introduced Workiva Carbon, a new carbon accounting, management, and decarbonization solution that integrates its ESG platform. Built atop its Sustain.Life acquisition, it supports global climate regulations like CSRD, SEC and California’s SB‑253/261 while enabling real-time GHG tracking.

In May 2024, Workiva and ERM formed a strategic partnership to deliver end-to-end sustainability reporting. ERM brings expertise in climate, EHS, and disclosure strategy while Workiva provides a secure cloud platform for real-time ESG data capture and reporting aligned with evolving regulations.

In March 2024, Persefoni Japan G.K. partnered with Deloitte Tohmatsu Consulting LLC to implement GHG emissions management systems. Combining Deloitte's strategy expertise with Persefoni’s platform, they support Japanese enterprises in measuring, managing, and publicly disclosing emissions data.

Components Covered:
• Software
• Services

Deployment Modes Covered:
• Cloud-based
• On-premise

Organization Sizes Covered:
• Large Enterprises
• Small and Medium-sized Enterprises (SMEs)

Applications Covered:
• Carbon Footprint Management
• Energy Management
• Waste Management
• Water Management
• Social Responsibility Monitoring
• Governance and Compliance Management
• Investor Reporting
• Supply Chain Management
• Risk Management
• Audit Management
• Other Applications

End Users Covered:
• IT and Telecom
• Manufacturing
• Healthcare
• Retail and Consumer Goods
• Energy and Utilities
• Transportation and Logistics
• Construction and Real Estate
• Food & Beverages
• Chemicals
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements