ESG Software Market (2025 - 2033) Size, Share & Trends Analysis Report By Deployment Mode (Cloud, On-Premises), By Type (ESG Reporting & Disclosure Software, Carbon Accounting Software), By Organization Size, By End Use, By Region, And Segment Forecasts

ESG Software Market Summary

The global ESG software market size was estimated at USD 1.08 billion in 2024 and is projected to reach USD 5.59 billion by 2033, growing at a CAGR of 20.7% from 2025 to 2033. The market is rapidly expanding as organizations are increasing efforts to embed environmental, social, and governance considerations into core strategic and operational frameworks. 

The shift is driven by mounting regulatory requirements, investor scrutiny, and stakeholder expectations compelling businesses to move beyond fragmented, spreadsheet-based ESG tracking to unified, audit-ready digital platforms. Enterprises across sectors such as financial services, energy, manufacturing, and consumer goods are adopting ESG software to streamline data collection, automate disclosures, and drive measurable sustainability outcomes. Cloud-native ESG platforms are increasingly favored for their scalability, real-time analytics, and integration capabilities with existing ERP, EHS, and GRC systems. For instance, firms are deploying ESG reporting tools that automatically map operational data to frameworks such as GRI, SASB, TCFD, and CSRD, reducing manual reporting burdens while enhancing transparency and compliance readiness.

The market is further shaped by the convergence of AI, IoT, and advanced data governance capabilities within ESG software ecosystems. AI-powered solutions are being leveraged to detect ESG data anomalies, forecast emissions trajectories, and assess supplier risks, while IoT sensors provide real-time insights into energy consumption, waste generation, and resource utilization. For instance, manufacturers are integrating ESG platforms with IoT-enabled energy meters and water usage trackers to monitor Scope 1 and 2 emissions at the facility level, while financial institutions are adopting AI models to assess ESG risk exposure across investment portfolios. These capabilities position ESG software not only as compliance tools but as decision intelligence platforms enabling scenario modeling, materiality mapping, and automated ESG performance scoring.

Moreover, the increasing adoption of ESG solutions by small and mid-sized enterprises (SMEs), supported by the availability of modular, cloud-based, and cost-effective platforms, is expanding the market size. Vendors are incorporating capabilities such as automated double materiality assessments, value chain risk modeling, and digital assurance tools to address evolving compliance and performance requirements. This trend is particularly significant as regulatory frameworks such as the European Union’s Corporate Sustainability Reporting Directive (CSRD) become more prominent, increasing the demand for integrated, audit-ready ESG reporting systems. For instance, in November 2023, KPMG and Workiva Inc. strengthened their collaboration to enhance ESG reporting capabilities, focusing on CSRD compliance and double materiality assessments through a unified, audit-ready digital workflow that eliminates manual spreadsheet-based processes. Their integrated approach enables organizations to align ESG data with core business strategy while improving transparency, accuracy, and operational efficiency. Therefore, as regulatory complexity and stakeholder expectations continue to rise, such strategic partnerships emphasize the growing role of ESG software as a foundation for sustainable and accountable enterprise transformation.

Type Insights

The ESG reporting & disclosure software segment accounted for the largest market share of 36.81% in 2024, driven by the surge in mandatory sustainability reporting requirements across regions, as well as the increasing need for audit-ready, real-time ESG performance tracking. Organizations are prioritizing platforms that can streamline complex disclosure processes across multiple frameworks including CSRD, ISSB, GRI, and TCFD, and align reporting with financial metrics. Demand is also being bolstered by the adoption of materiality mapping tools, integrated stakeholder engagement modules, and cross-border compliance capabilities that reduce manual burden while enhancing transparency and investor confidence. Furthermore, the rising focus on ESG assurance and the digitization of regulatory filings has positioned ESG disclosure platforms as central to enterprise ESG strategies. As a result, ESG reporting & disclosure software continues to lead the market as the most critical enabler of standardized, accurate, and forward-looking sustainability communication.

The carbon accounting software segment is projected to grow at the fastest CAGR of 21.3% over the forecast period due to intensifying regulatory mandates around Scope 1, 2, and particularly Scope 3 emissions disclosures, along with corporate net-zero targets that require accurate, auditable carbon tracking across global value chains. Companies are increasingly shifting from spreadsheet-based carbon data aggregation to automated, AI-enabled platforms that support real-time emissions tracking, reduction pathway modeling, and integration with procurement and ERP systems. The growth is further fueled by the emergence of carbon pricing schemes, investor pressure for science-based targets, and the need for verifiable emissions data to support ESG-linked financing. In addition, the adoption of carbon data APIs, lifecycle analysis tools, and blockchain-backed emissions registries is making carbon accounting software indispensable to sustainability strategies across sectors, especially in manufacturing, logistics, and finance.

Deployment Mode Insights

The cloud segment accounted for the largest revenue share in 2024, driven by rising demand for scalable, cost-efficient, and easily deployable platforms that support integrated ESG data management, regulatory compliance, and real-time performance monitoring. Organizations are increasingly adopting cloud-based ESG solutions for their ability to centralize data across global operations, automate materiality assessments, and align reporting with evolving frameworks such as CSRD, TCFD, and ISSB. The growth of software-as-a-service (SaaS) models further accelerates adoption by enabling rapid implementation, seamless updates, and reduced IT overhead. For instance, in October 2021, Benchmark Gensuite launched ESG Director, a cloud-native digital solution that unifies ESG data, workflows, and stakeholder collaboration into a single, audit-ready platform, empowering enterprises to drive both regulatory compliance and continuous ESG performance improvement. This trend highlights the central role of cloud deployment in enabling flexible, future-proof ESG strategies for organizations navigating increasingly complex disclosure landscapes.

The on-premises segment is projected to witness a moderate CAGR during the forecast period, driven by sustained demand for secure, customizable ESG software solutions among organizations operating in highly regulated sectors. These enterprises require full control over ESG data, seamless integration with legacy IT infrastructure, and adherence to strict internal governance and compliance standards that favor self-managed deployment models. On-premises platforms offer enhanced data privacy, system configurability, and internal hosting flexibility, suitable for institutions navigating complex ESG reporting mandates. For instance, in September 2023, SAP Fioneer introduced its ESG KPI Engine, a comprehensive solution designed to support on-premises, private, or public cloud deployment, enabling financial institutions to centrally manage, calculate, and report financed emissions KPIs in line with global regulatory frameworks through a fully auditable and automated architecture. Consequently, this example highlight the strategic value of on-premises ESG solutions for enterprises that prioritize data sovereignty, auditability, and seamless integration with existing infrastructure to meet complex reporting and compliance requirements.

Organization Size Insights

The large enterprise segment accounted for the largest market share in 2024, driven by complex compliance landscapes, integrated global operations, and ability to invest in scalable ESG infrastructures. Highly regulated industries such as finance, energy, and manufacturing often require advanced features such as automated materiality frameworks, complex supply‑chain risk analytics, and multi-framework reporting (e.g., CSRD, TCFD, SASB). In addition, large enterprises gravitate toward platforms that can seamlessly integrate with existing ERP, GRC, and EHS systems while supporting enterprise-grade auditability. For instance, in August 2024, EY expanded its proprietary ESG digital platform, EY ESG Compass, adding modules such as double materiality assessment, EU CSRD performance monitoring, sector‑specific data models, sustainability incentives tracking, Scope‑3 emissions accounting, net‑zero planning, sustainable supply‑chain management, benchmarking, and generative AI use cases, further reinforcing the segment’s strategic alignment with large‑scale enterprise needs and complex ESG reporting demands.

The small and medium-sized enterprises (SMEs) segment is expected to grow at the fastest CAGR during the forecast period, reflecting growing demand from agile and resource-constrained organizations seeking affordable, scalable ESG solutions. Increasing regulatory mandates, investor expectations, and market access drivers are prompting SMEs to adopt purpose-built platforms that streamline data gathering, automate ESG workflows, and support stakeholder transparency. For instance, in November 2023, Singapore’s Monetary Authority of Singapore (MAS) introduced Gprnt, a first-of-its-kind digital platform designed to simplify ESG reporting for SMEs by offering automated sustainability disclosures, data-driven emissions calculation, and integration with public and private data sources, demonstrating that market infrastructure developments are lowering barriers to entry and empowering SMEs to report ESG performance efficiently. Consequently, as these digital utilities continue to evolve, they are improving the role of ESG software as an indispensable tool not just for compliance but for enabling SMEs to engage meaningfully with sustainability commitments and growth strategies.

End Use Insights

The BFSI segment accounted for the largest market share of over 18.0% in 2024, driven by regulatory mandates, investor demand for sustainability-aligned financing, and the sector’s need for robust ESG risk reporting capabilities. Financial institutions are increasingly adopting platforms that support emissions tracking, supply chain resilience, and regulatory-aligned disclosures. For instance, in April 2025, ESG Book, in partnership with Boston Consulting Group (BCG) and powered by Google Cloud, introduced LEO, a purpose-built ESG solution designed to streamline sustainability reporting for corporations and financial institutions. LEO features smart pre-fill functionality powered by disclosure data and AI, enabling digital alignment with frameworks such as ISSB and GRI while significantly reducing the time and cost of ESG disclosure. Consequently, such development highlights the sector’s accelerating shift toward intelligent ESG platforms that not only enhance compliance and disclosure accuracy but also serve as critical enablers of sustainable finance and risk-informed decision-making.

The IT and Telecommunications segment is expected to register the fastest growth during the forecast period, driven by growing pressure to decarbonize digital infrastructure, manage high energy consumption from data centers, and ensure responsible sourcing across global supply chains. Companies in this sector are prioritizing ESG software solutions that enable automated carbon accounting, AI-driven energy optimization, and real-time ESG risk analytics, particularly in relation to Scope 3 emissions and e-waste traceability. In addition, rising investor scrutiny around ethical AI use, digital inclusion, and data privacy governance is prompting telcos and tech firms to adopt platforms that provide audit-ready, framework-aligned disclosures and facilitate enterprise-wide ESG strategy execution. The segment’s rapid adoption underscores its role as both a high-impact industry and a digital enabler of ESG transformation across other verticals.

Regional Insights

North America ESG software industry accounted for the largest global market share of 35.86% in 2024, supported by the rapid enforcement of disclosure regulations such as the SEC’s climate-related disclosure rule and California’s Climate Accountability Package, which are driving demand for auditable, real-time ESG reporting platforms. Enterprises across the U.S. and Canada are increasingly adopting ESG solutions that enable Scope 3 emissions tracking, automated CSRD mapping, and AI-powered materiality assessments to align with global frameworks such as ISSB, SASB, and TCFD. Financial institutions are leveraging ESG software to evaluate ESG-linked credit risks, while private equity firms are utilizing these platforms for portfolio-level ESG benchmarking. In addition, there is growing integration of ESG tools with existing ERP, GRC, and supply chain management systems, particularly among Fortune 500 companies aiming to meet investor-driven ESG targets. These trends reflect North America's leadership in compliance-driven ESG digitization, advanced analytics adoption, and cross-functional ESG integration.

U.S. ESG Software Market Trends

The U.S. ESG software industry is experiencing rapid expansion due to escalating regulatory demands, technology-driven automation, and investor expectations for standardized environmental, social, and governance disclosures. Enterprises are investing heavily in platforms that centralize ESG data, automate materiality assessments, and streamline compliance with frameworks such as the SEC’s climate disclosure rules and CSRD. AI and data analytics are playing an increasingly integral role enhancing reporting precision, reducing manual errors, and enabling predictive insights for ESG performance. U.S.-based sustainability software providers, including Workiva and local startups, are emerging as frontrunners offering tailored tools aligned with domestic regulatory shifts and sophisticated investor needs.

Europe ESG Software Market Trends

The ESG software industry in Europe is anticipated to register significant growth from 2025 to 2033, underpinned by a wave of regulatory reforms and technological innovation. The implementation of the Corporate Sustainability Reporting Directive (CSRD) has expanded mandatory reporting to approximately 50,000 companies, replacing the Non‑Financial Reporting Directive and embedding dual materiality requirements. Concurrently, the Corporate Sustainability Due Diligence Directive (CSDDD) mandates end-to-end human rights and environmental risk monitoring throughout supply chains. In parallel, the EU Taxonomy Regulation is steering market investment toward activities deemed environmentally sustainable. Consequently, the aforementioned factors are contributing substantially to bolstering the market growth.

The ESG software industry in the UK is poised for accelerated growth from 2025 to 2033, as companies in the UK are increasingly integrating ESG reporting tools with enterprise systems such as ERP and CRM, enabling unified performance tracking and enhanced operational visibility. Regulatory alignment is a key driver; the government's planned Sustainability Disclosure Requirements (SDR), including alignment with the upcoming UK Sustainability Reporting Standards (SRS), is prompting software providers to bake built‑in compliance frameworks into their platforms. Another prominent trend is the rise of AI-powered ESG analytics, which are enhancing data reliability, uncovering hidden risk patterns, and reducing manual reporting effort. Simultaneously, public and investor demand for transparency continues to grow, heightened scrutiny of greenwashing and enforcement actions by the Competition and Markets Authority (CMA) are pushing software vendors to include capabilities like real‑time claims validation, audit trails, and traceable supply chain insights.

The German ESG software industry is advancing rapidly under the influence of stringent regulatory mandates such as the EU's Corporate Sustainability Reporting Directive (CSRD) and the national Supply Chain Due Diligence Act (LkSG), which enforce comprehensive reporting on environmental, social, and supply chain risks. Enterprises are increasingly shifting toward cloud-based ESG solutions that deliver real‑time analytics, scalability, and seamless integration with legacy ERP and compliance systems, particularly appealing to industrial sectors like manufacturing and automotive that require operational performance alignment. In addition, Germany's innovative ecosystem, featuring firms like leadity and Equintel offering CSRD-compliant automation, and Atlas Metrics delivering impact-aligned reporting platforms, reflects a growing domestic capability for tailored ESG solutions.

Asia Pacific ESG Software Market Trends

Asia Pacific ESG software industry is expected to register the fastest CAGR of 21.8% from 2025 to 2033, driven by expanding regulatory enforcement, rising investor pressure, and the rapid digitalization of ESG practices across emerging economies. Countries such as Singapore, Japan, and Australia are mandating sustainability disclosures, while China is scaling pilot programs for ESG integration in capital markets. Enterprises across sectors are adopting ESG platforms that support automated taxonomy mapping, localized reporting templates, and AI-powered risk scoring to meet region-specific frameworks like BRSR Core in India and ESG Reporting Guidelines 2.0 in Singapore. In addition, regional tech hubs are fueling innovation in modular, multilingual, and cloud-native ESG tools tailored to SMEs and mid-market enterprises. These developments underscore the Asia Pacific’s transition from compliance-led ESG adoption to data-driven sustainability intelligence.

The ESG software industry in Japan is poised for robust growth from 2025 to 2033, driven by several notable and country‑specific dynamics. Japanese enterprises are increasingly adopting sustainability management platforms to monitor carbon footprints, optimize resource use, and comply with both global and domestic disclosure mandates. Carbon management solutions led the ecosystem in 2024, while resource management software is emerging as the fastest-growing segment, reflecting rising demand for comprehensive ESG oversight across manufacturing, energy, and mobility sectors. Collectively, these trends are driving the ESG software ecosystem in Japan, characterized by sophisticated carbon and resource tracking platforms, tailored investor‑grade analytics, and a growing alignment with global sustainability norms.

The ESG software industry in China is projected to expand significantly from 2025 to 2033, driven by a confluence of regulatory momentum, technological innovation, and strategic market shifts. Strong government backing for green finance, evident in the country’s dominance of global green bond issuance and its dual‑carbon targets,has elevated demand for platforms that support transparent ESG metrics and carbon accounting. Chinese enterprises are also leveraging AI and machine learning within ESG solutions to enhance data collection, perform real‑time analytics, and improve reporting accuracy, particularly across fragmented supply chains.

The ESG software industry in India is poised for rapid expansion from 2025 to 2033, driven by the increasing enforcement of mandatory sustainability disclosures such as SEBI’s BRSR Core framework, heightened investor scrutiny on ESG compliance, and the growing participation of Indian corporations in global supply chains requiring traceable, auditable ESG data. Enterprises are adopting digital ESG solutions to streamline regulatory reporting, automate value-chain risk mapping, and align with localized ESG taxonomies. The rise of industry-specific ESG templates, support for vernacular languages, and embedded analytics tailored for India’s fragmented SME landscape are further enabling adoption across mid-market segments. In addition, integration of ESG modules within ERP systems and demand for sector-focused solutions in manufacturing, energy, and infrastructure sectors are fostering deeper enterprise-wide ESG alignment. These shifts are positioning India as a key growth hub for ESG software within the Asia Pacific region.

Key ESG Software Company Insights

Key players operating in the ESG software industry are Benchmark Gensuite Inc., Diligent Corporation, Enablon SA, Envizi Pty Ltd, and others. Companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In September 2024, Workiva Inc. partnered with Visual Lease, integrating its ESG Steward tool to better manage real estate and equipment emissions in alignment with GHG Protocol standards.

• In June 2024, Workiva Inc. launched Workiva Carbon, a carbon accounting and management platform, alongside the acquisition of startup Sustain.Life, to automate emissions tracking across Scope 1, 2, and 3 and support audit-ready reporting.

• In March 2024, Persefoni AI Inc. formed a partnership with Deloitte Tohmatsu Consulting to offer comprehensive greenhouse gas emissions management and disclosure-from conceptualization to implementation, supported by the launch of Persefoni Pro, a generative-AI guided version aimed at streamlining supply chain emissions data collection for SMEs.

ESG Software Market Report Scope

Global ESG Software Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global ESG software market report based on deployment mode, type, organization size, end use, and region.

• Deployment Mode Outlook (Revenue, USD Million, 2021 - 2033)

  • On-Premises

  • Cloud

• Type Outlook (Revenue, USD Million, 2021 - 2033)

  • ESG Reporting & Disclosure Software

  • Carbon Accounting Software

  • ESG Data Management Software

  • Social and Governance Monitoring Tools

  • Audit & Compliance Management

  • Others

• Organization Size Outlook (Revenue, USD Million, 2021 - 2033)

  • Large Enterprises

  • Small and Medium Sized Enterprises (SMEs)

• End Use Outlook (Revenue, USD Million, 2021 - 2033)

  • BFSI

  • Energy and Utilities

  • Manufacturing

  • Healthcare

  • Retail

  • IT and Telecommunications

  • Government and Public Sector

  • Others

• Regional Outlook (Revenue, USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa