As the importance of environmental, social, and governance (ESG) factors continues to grow in the business world, the demand for ESG reporting software has seen a significant rise. In this blog post, we will delve into the latest statistics and trends within the ESG reporting software industry. From the adoption rates among organizations to the key features driving the market growth, we will provide valuable insights into this rapidly evolving sector. Stay tuned to learn more about the current landscape of the ESG reporting software industry.
The Latest Esg Reporting Software Industry Statistics Explained
The ESG Reporting market is expected to grow at a CAGR of 14.5% from 2021 to 2026.
This statistic indicates that the ESG (Environmental, Social, and Governance) reporting market is projected to expand at a Compound Annual Growth Rate (CAGR) of 14.5% from 2021 to 2026. A CAGR of 14.5% suggests a strong growth trajectory for the market over the specified 5-year period. This growth rate signifies that the market is expected to increase steadily and significantly year by year. Factors such as increasing emphasis on sustainability, regulatory requirements, and growing investor interest in ESG factors are likely driving this growth in the ESG reporting market. Organizations are increasingly recognizing the importance of disclosing their ESG performance, leading to the expected market expansion observed in this projection.
90% of S&P 500 index companies published sustainability reports in 2019.
The statistic that 90% of S&P 500 index companies published sustainability reports in 2019 indicates a high level of proactive engagement with environmental, social, and governance (ESG) issues among these major corporations. By voluntarily disclosing information about their sustainability practices and performance, these companies are demonstrating a commitment to transparency and accountability to investors, stakeholders, and the public. This widespread adoption of sustainability reporting suggests a growing recognition of the importance of ESG factors in driving long-term value creation and managing risks, reflecting a broader trend within the business community towards incorporating sustainability into corporate strategies and decision-making processes.
In 2020, 33% of Global Institutional Investors used ESG information to inform their investment decision-making.
The statistic “In 2020, 33% of Global Institutional Investors used ESG information to inform their investment decision-making” indicates that a significant portion of institutional investors worldwide incorporated Environmental, Social, and Governance (ESG) factors into their investment strategies. ESG criteria consider the sustainability and ethical impact of investments beyond financial returns, reflecting a growing trend towards responsible investing. This suggests that a notable segment of investors are placing importance on factors such as climate change, social issues, and corporate governance when making investment decisions, demonstrating a shift towards more holistic and socially conscious investment practices in the financial industry.
The ESG Reporting Software industry in the European region is predicted to grow by 13.88% between 2021 and 2026.
The statistic indicates that the ESG (Environmental, Social, and Governance) Reporting Software industry in the European region is forecasted to experience a growth rate of 13.88% between the years 2021 and 2026. This suggests a significant expansion in the market size and adoption of ESG reporting software solutions by companies in Europe over the next five years. The growth rate reflects the increasing importance placed on sustainability and responsible business practices, as businesses seek to enhance transparency, accountability, and compliance with ESG standards. This growth projection highlights a positive trend towards greater integration of ESG considerations into corporate strategies and decision-making processes across industries in the European region.
Currently, at least 53 stock exchanges require ESG reporting.
The statistic “Currently, at least 53 stock exchanges require ESG reporting” indicates that there is a growing trend among stock exchanges worldwide to incorporate environmental, social, and governance (ESG) factors into their reporting requirements for listed companies. This implies that companies are increasingly being held accountable for not only their financial performance but also their impact on the environment, society, and governance practices. The rising number of stock exchanges mandating ESG reporting suggests a shift towards more sustainable and responsible business practices, as investors are increasingly recognizing the importance of considering ESG criteria in their investment decisions.
Almost 80% of total global investors apply ESG data to their investment process.
The statistic “Almost 80% of total global investors apply ESG data to their investment process” indicates that the majority of investors worldwide consider environmental, social, and governance (ESG) factors when making investment decisions. ESG data encompasses a range of sustainability metrics that can help investors evaluate a company’s performance regarding issues such as climate change, human rights, diversity, and ethical business practices. By incorporating ESG considerations into their investment process, investors aim to achieve financial returns while also promoting responsible and sustainable practices among the companies they invest in. This statistic highlights the increasing importance of ESG factors in the investment landscape and suggests a growing trend towards more socially and environmentally conscious investing practices around the globe.
84% of asset managers used at least one ESG factor in their investment process in 2020.
The statistic states that in 2020, 84% of asset managers incorporated at least one Environmental, Social, and Governance (ESG) factor into their investment decision-making process. This indicates a growing trend among asset managers to consider sustainability and ethical considerations alongside traditional financial metrics when making investment choices. The high percentage suggests a significant shift towards recognizing the importance of ESG factors in achieving long-term financial success and aligning investments with environmental and social responsibility goals. This statistic highlights the increasing awareness and integration of ESG considerations in the investment industry as a means to drive positive impact and sustainable growth.
Asia-Pacific (APAC) as a region is expected to register the fastest growth rate during the forecast period in ESG reporting software industry.
The statement suggests that within the environmental, social, and governance (ESG) reporting software industry, the Asia-Pacific (APAC) region is projected to experience the most rapid rate of growth compared to other regions over the forecast period. This indicates a strong market demand for ESG reporting software solutions in APAC, driven by factors such as increasing awareness of sustainability practices, regulatory requirements, and corporate responsibility initiatives in the region. Companies operating in the ESG reporting software industry may find opportunities for expansion and investment in the APAC region due to the potential for higher customer adoption and market growth.
A Pwc survey in 2020 found that 83% of investors want companies to identify and report ESG factors that materially affect their business.
The statistic from the PwC survey in 2020 suggests that a significant majority, 83% of investors, are interested in companies identifying and reporting on Environmental, Social, and Governance (ESG) factors that have a material impact on their business operations. This indicates a growing awareness and importance placed on sustainability, ethical practices, and corporate responsibility among investors. By emphasizing the need for transparent reporting on ESG factors, investors are likely seeking assurance that companies are addressing risks and opportunities related to sustainability, social impact, and ethical governance practices, which can potentially influence investment decisions and long-term financial performance.
In 2020, 79% of asset managers and owners incorporated ESG issues into their investment approach.
In 2020, 79% of asset managers and owners integrated Environmental, Social, and Governance (ESG) issues into their investment strategy. This statistic indicates a significant shift towards responsible and sustainable investing practices within the financial industry. By incorporating ESG factors into their decision-making process, these professionals are considering not only financial returns but also the impact of their investments on the environment, society, and corporate governance. This trend reflects a growing recognition of the importance of sustainability and ethical considerations in the investment landscape, as investors increasingly prioritize long-term value creation and risk management alongside traditional financial metrics.
In 2020, 83% of mainstream investors adopted ESG into their strategy.
The statistic “In 2020, 83% of mainstream investors adopted ESG into their strategy” indicates that a significant majority of traditional investors have incorporated Environmental, Social, and Governance (ESG) considerations into their investment approach. ESG factors are non-financial variables that can have a material impact on the financial performance and risk profile of investments. This high adoption rate suggests a growing recognition among investors of the importance of sustainability, ethical practices, and corporate responsibility when making investment decisions. It reflects a shift towards more socially responsible investing practices and a desire to align investment strategies with broader societal and environmental goals. This trend highlights the increasing influence of ESG factors in the investment landscape and underscores the evolving priorities of investors towards more sustainable and ethical investment practices.
The global ESG (Environmental, Social, and Governance) software market is valued at $674.6 million in 2021 and is expected to reach $1,192.2 million by 2025.
This statistic indicates the current and anticipated value of the global Environmental, Social, and Governance (ESG) software market. In 2021, the market is estimated to be worth $674.6 million, reflecting the increasing importance of ESG considerations in business practices. The projected growth rate suggests that by 2025, the market is expected to nearly double in value to reach $1,192.2 million. This significant growth highlights the growing awareness and adoption of ESG principles by companies worldwide, as they seek to integrate sustainability, ethical, and governance factors into their decision-making processes and operations. The increasing demand for ESG software solutions reflects a broader trend towards sustainable and socially responsible investing and business practices.
Carbon footprint accounted for 34.2% of the overall ESG software market share in 2021.
The statistic indicates that carbon footprint-related solutions made up 34.2% of the total market share for Environmental, Social, and Governance (ESG) software in 2021. This suggests that a significant portion of the demand for ESG software was driven by the need for tools and technologies that enable organizations to measure, track, and mitigate their carbon emissions and environmental impact. As sustainability and climate change become increasingly important considerations for businesses and investors, the growing market share of carbon footprint solutions reflects a trend towards greater emphasis on environmental responsibility and sustainability practices in the corporate world.
As per Deloitte, 92% of the companies they surveyed have built, or are in the process of building, systems infrastructure for ESG reporting.
The statistic from Deloitte stating that 92% of the companies they surveyed have already built or are in the process of building systems infrastructure for ESG (Environmental, Social, and Governance) reporting highlights a significant trend towards prioritizing sustainability and responsible business practices. This finding indicates that an overwhelming majority of companies are recognizing the importance of disclosing their impacts on the environment, society, and governance aspects, and are taking active steps to put in place the necessary frameworks for measuring and reporting on their ESG performance. As ESG factors continue to gain prominence in the business world, the high percentage of companies investing in systems infrastructure for ESG reporting underscores a growing awareness of the value of sustainable practices among businesses across various industries.
According to a study by BCG, ESG reporting diversity is the fastest-growing ESG category with a 27% growth rate from 2019 to 2020.
The statistic suggests that in the span of one year, from 2019 to 2020, the category of ESG reporting diversity experienced significant growth, specifically with a 27% increase. This growth rate indicates that there is a rapidly growing interest and focus on companies reporting on environmental, social, and governance (ESG) factors with a particular emphasis on diversity within their operations. The findings from the study conducted by BCG highlight the increasing importance placed on transparency and accountability in relation to ESG practices, with diversity being a key area of concern. This statistic points towards a positive trend of organizations recognizing the value of ESG reporting diversity and taking steps to enhance their reporting practices in this area.
According to Refinitiv, over $20 billion had been raised by sustainable or green bonds on London’s stock exchange.
The statistic states that more than $20 billion has been raised through sustainable or green bonds on the London Stock Exchange. Sustainable or green bonds are financial instruments that are issued to fund projects with environmental or social benefits. The fact that over $20 billion has been raised in this manner highlights an increasing trend towards sustainable and socially responsible investing. Investors, companies, and governments are increasingly recognizing the importance of incorporating environmental and social considerations into their investment decisions, and the significant amount of capital raised through sustainable bonds on the London Stock Exchange demonstrates the growing interest and support for sustainable financing options in the global financial markets.
Institutional investors manage over $89 trillion in assets globally, and over 60% of these assets are managed using ESG data.
The statistic highlights the significant influence and integration of environmental, social, and governance (ESG) factors in investment decision-making by institutional investors. With over $89 trillion in assets under management globally, these investors are increasingly utilizing ESG data to make informed investment choices. The fact that over 60% of these assets are managed using ESG data underscores the growing recognition of the importance of sustainable and socially responsible investing strategies. By incorporating ESG criteria into their investment approaches, institutional investors are not only aiming to achieve financial returns but also to promote positive social and environmental impacts through their investment portfolios.
Conclusion
The statistics presented in the ESG reporting software industry paint a promising picture of growth and adoption within the corporate world. Companies are increasingly recognizing the value of incorporating environmental, social, and governance factors into their decision-making processes. As technology continues to advance, the demand for sophisticated ESG reporting tools is expected to rise, creating opportunities for software providers to innovate and meet the evolving needs of businesses striving for sustainability and transparency.
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