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07-Jan-2026

ESG Reporting Market to Experience Notable Growth in Forecast Span by 2031

ESG Reporting Market Overview:

The global ESG reporting market is projected to grow at a healthy CAGR of approximately 15% through 2027. This growth is driven by increasing investor scrutiny, expanding regulatory requirements, rising volumes of corporate data, and the adoption of artificial intelligence (AI) for ESG data collection, analytics, and reporting.

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Environmental, Social, and Governance (ESG) data captures a company’s non-financial performance and sustainability practices. ESG is built on three core pillars:

  • Environmental: Metrics such as greenhouse gas emissions, energy consumption, water usage, waste management, and carbon footprint reduction.
  • Social: Indicators including fair pay and living wages, compliance with labor laws, workplace health and safety, and equal employment opportunities.
  • Governance: Factors such as corporate governance structures, regulatory compliance, ethical business practices, and accounting transparency and integrity.

ESG metrics can be broadly classified into quantitative and qualitative measures. Quantitative metrics consist of numerical data that can be directly measured and compared, such as energy usage, water consumption, and greenhouse gas emissions. Qualitative metrics, by contrast, are non-numerical and more difficult to measure and compare, including labor practices, commitments to diversity, equity, and inclusion (DEI), and governance culture. These metrics are consolidated into ESG reports that demonstrate an organization’s effectiveness in implementing sustainability initiatives.

Rising Demand from Investors and Organizations

Growing interest from investors and enterprises is a major driver of the global ESG reporting market. Investors increasingly rely on ESG metrics to evaluate potential investments, assess risk, and align portfolios with sustainability goals. ESG software enables the tracking and reporting of ESG initiatives, helping investors avoid companies exposed to environmental damage, corruption, or social risks.

At the same time, organizations are leveraging ESG reporting to communicate progress on climate action, corporate social responsibility (CSR), regulatory compliance, goal tracking, governance, and long-term sustainability.

“Today, investors increasingly rely on ESG disclosures to guide their investment decisions. Companies that perform well on ESG metrics are perceived as less risky, better positioned for long-term growth, and more resilient to uncertainty,”
— Marketing Director, ESG Reporting Software Provider, USA

Transformative Role of Artificial Intelligence in ESG Reporting

Artificial intelligence is reshaping the ESG landscape by enabling the collection and analysis of large volumes of ESG data, automating manual processes, identifying trends, and generating predictive insights. AI is being used to assess exposure to ESG risks such as climate change, labor practices, and governance issues, as well as to automate compliance activities by reviewing regulatory filings and identifying gaps.

Recognizing the market’s potential, ESG reporting vendors are increasingly launching AI-driven solutions. For example:

  • In March 2023, Novem ESG launched an AI-enabled platform for analyzing data against ESG regulations and checklists.
  • In September 2022, C3 AI introduced C3 AI ESG, an application that uses AI and machine learning to help organizations monitor, report, and improve ESG performance, significantly reducing the time required to gather and analyze disparate ESG data.

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Regulatory Requirements Accelerating ESG Disclosure

Regulatory mandates worldwide are further fueling demand for ESG reporting. Governments and regulators are introducing rules that require organizations to disclose ESG-related information in annual reports and regulatory filings.

Key examples include:

  • United States: The U.S. Securities and Exchange Commission (SEC) climate guidance requires public companies to disclose material business risks, including climate-related risks, in their regular filings.
  • European Union: The Sustainable Finance Disclosure Regulation (SFDR) obliges financial market participants and advisers to disclose sustainability-related information and aims to prevent greenwashing. Additionally, the Sustainable Corporate Governance Initiative strengthens the EU’s company law framework by introducing mandatory due diligence and a duty of care related to social, human rights, and environmental impacts.

Competitive Landscape of the ESG Reporting Market

Prominent players operating in the global ESG reporting market include Wolters Kluwer, PwC, Workiva, Nasdaq, Cority/Greenstone, Diligent, Emex, Novisto, Diginex, Sphera, IsoMetrix, Novem ESG, and C3 AI.

Growth Strategies Adopted by Market Players

Market participants are pursuing a mix of organic and inorganic growth strategies, such as product launches, acquisitions, and strategic collaborations, to strengthen their market position.

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Notable developments include:

  • In July 2023, Wolters Kluwer launched TeamMate+ ESG, a solution that provides access to ESG reporting standards and supports assurance over ESG disclosures.
  • In May 2023, Cority acquired Greenstone, expanding its capabilities in sustainability and ESG reporting.
  • In May 2023, KPMG and Workiva announced an expanded collaboration to accelerate and automate ESG and climate data management and analytics.

Overall, the global ESG reporting market is expected to gain significant momentum in the coming years, driven by increasing pressure on organizations to measure and disclose ESG performance, rapid technological advancements in ESG software, and aggressive growth strategies adopted by leading market players.

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ESG Reporting Market to Experience Notable Growth in Forecast Span by 2031

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Last Updated: 07-Jan-2026