Global ESG Reporting Market is projected to grow at a healthy CAGR of ~15% in the coming 5 years from 2022


ESG Market is being driven by rising investor scrutiny, regulatory constraints, a growth in corporate data volumes, and the advent of AI for ESG data collecting, analytics, and reporting.

Environmental, social, and governance (ESG) data evaluates a company’s non-financial performance and sustainability policies.

The three pillars of ESG are as follows:

·       Environmental Data such as the quantity of greenhouse gases generated by a company into the atmosphere, energy usage data, water usage data, waste reduction data, carbon footprint reduction data, waste reduction data.

·       Social Data such as fair pay and living wages data, compliance with labor regulations, workplace health & safety, equal employment opportunity.

·       Governance Data such as Corporate governance, compliance, ethical business practices, accounting transparency and integrity.

ESG measures might be quantitative or qualitative. Quantitative metrics, such as energy consumption, water consumption, greenhouse gas emissions, and energy consumption, are numerical data that may be directly monitored and compared. Whereas quantitative metrics contain numerical data, qualitative metrics contain non-numerical data that is more difficult to analyze and compare, such as the company's labor policy, commitment to diversity, equality, and inclusion (DEI), and others. This data is used to create reports that show a company's ability to successfully implement ESG initiatives.

Rising demand from investors and corporate drives the Global ESG reporting market

Investors are increasingly using ESG indicators to analyze firms they want to buy or invest in. ESG software monitors ESG activities, and investors use ESG reports to filter assets, align investments, and avoid corporations that may cause environmental harm, corruption, or social blunders. Companies/organizations are also using ESG reporting to report on their efforts and progress on climate change, corporate social responsibility (CSR) activities, regulatory compliance, goal monitoring, governance, and sustainability.

“……Nowadays, investors while evaluating companies look for ESG disclosures to steer their investment decision-making. Investors perceive that organizations that perform well on ESG metrics are relatively less risky, better positioned for long-term growth, and better equipped for uncertainty……” 

-      Marketing Director, ESG Reporting Software Provider, U.S.

Increasing significance of artificial intelligence (AI) offers transformative opportunities for enterprises in their sustainability journey thus driving the ESG reporting market

The implementation of AI is transforming the ESG landscape. It is rapidly being used to gather and analyze massive volumes of ESG data, automate processes, find trends, and forecast. AI is being used to analyze a company's exposure to environmental, social, and governance issues, such as climate change, labor practices, and corporate governance. It may also be used to automate compliance processes like examining regulatory filings and spotting holes in compliance. Players in the industry have also released a variety of AI-related products, citing the sector's lucrative possibilities. For instance,

·       In March 2023, Novem ESG launched its software that is automated by Artificial Intelligence (AI) for analysis of data against ESG (Environment, Social and Governance) regulations and checklists 

Regulatory compliances drive the demand for ESG disclosures expanding the ESG Reporting Market

There are a growing number of regulations across the world requiring organizations to disclose and report on ESG initiatives, sustainability, and governance. Globally, regulators are finalizing rules that require companies to disclose information on their ESG footprint in their annual reports and mainstream regulatory filings. Some of the ESG regulations that are mandatory and currently being implemented:

·       In the U.S., the US SEC Climate Guidance requires public companies to disclose material business risks to investors, transparently through regular filings with the SEC, including climate change risks that may develop on their business 

Competitive Landscape Analysis of the ESG Reporting Market

Some of the key players operating in the market include Wolters Kluwer, PwC, Workiva, Nasdaq, Cority/Greenstone, Diligent, Emex, Novsito, diginex, Sphera, IsoMetrix  Novem ESG, C3 AI among others.

Aggressive Growth Strategies Adopted by Players to Establish Their Foothold in the ESG Reporting Market

Firms operating in this market are adopting organic and inorganic growth strategies such as launching new products, acquiring related firms, and entering into collaborations to gather further market share. For instance,

§  In July 2023, Wolters Kluwer launched TeamMate+ ESG. The solution provides easy access to essential ESG reporting standards and enables auditors to provide assurance over ESG reporting

§  In May 2023, leading global enterprise Environmental, Health, and Safety (EHS) software provider Cority, acquired Greenstone, a sustainability & ESG reporting software provider 

The ESG Reporting Market is expected to gain traction in the coming years as a result of increased pressure on companies to measure, disclose, and progress on ESG initiatives, technological advancements in ESG reporting software, and aggressive organic and inorganic growth strategies adopted by the players.

For more comprehensive insights, please get in touch at https://meditechinsights.com/esg-reporting-market/

About Medi-Tech Insights 

Medi-Tech Insights is a healthcare-focused business research & insights firm. Our clients include Fortune 500 companies, blue-chip investors & hyper-growth start-ups. We have completed 100+ projects in Digital Health, Healthcare IT, Medical Technology, Medical Devices & Pharma Services. 

Contact:

Ruta Halde

Associate, Medi-Tech Insights

+32 498 86 80 79

info@meditechinsights.com

Comments

Post a Comment

Popular posts from this blog

The Transplantation Market Anticipated to Expand with 9-10% CAGR by 2029 as Need for Organ Transplants Rises

Image
  The market is propelled by various factors, including advancements in medical technology, the rising prevalence of chronic diseases that lead to organ failure, increasing awareness of transplantation as a viable treatment option, and evolving regulatory and reimbursement policies. In medical terms, transplantation refers to the surgical procedure of transferring cells, tissues, or organs from a donor to a recipient to replace malfunctioning or damaged body parts. Its primary goal is to restore normal function or improve the quality of life for the recipient. Transplantation is often used to treat end-stage organ failure, severe injuries, certain cancers, and congenital defects that are not manageable through other medical treatments. This specialized field requires careful matching of donors and recipients, advanced surgical techniques, and comprehensive post-transplant care to ensure success. Types of transplantation include: Kidney Transplantation: Involves replacing a fail...
Read more

Global 3D Cell Culture Market Seeks Prosperous Horizon: Double-Digit Growth Expected by 2027

Image
  The need for organ transplants and tissue engineering combined with developments in scaffold-free technology, a rise in investments and research and development (R&D) funding for cell-based studies, growing efforts to develop potential alternatives to animal-based testing, and the rising incidence of chronic diseases are some of the major factors propelling the growth of the global 3D cell culture market. 3D cell culture   is an important approach in cell biology and tissue engineering because it includes cultivating and analyzing cells in a three-dimensional environment that mimics the circumstances present in the human body. It has several advantages, such as the capacity to recreate in vivo settings, allow the creation of complex multicellular structures, and give realistic drug testing situations. Scaffold-based technologies employing materials such as hydrogels are employed for 3D cell culturing. Its uses include cancer research, tissue engineering, and medication d...
Read more

Global Tricuspid Valve Repair Market Driven by Innovation: Set to Surge with a US$2.5 Billion Market by 2028

Image
  Increasing geriatric population, growing preference for minimally invasive procedures like annuloplasty and transcatheter tricuspid valve repair (TTVR), increased clinical research and trials activities for developing new tricuspid valve repair technologies, and rising incidence of tricuspid valve disorders are some of the key factors driving the global tricuspid valve repair market. • Medical technology advancements in the field of cardiac interventions. • Improved awareness of heart valve disorders. One of the four valves in our heart that regulates blood flow is the tricuspid valve . It is located between the ventricle and the atrium, the upper and lower chambers of our heart, on the right side. It guarantees that blood travels from the right atrium to the right ventricle in the proper path. As blood passes through the tricuspid valve, its three leaflets, or flaps, open and close. Tricuspid valve illnesses are disorders that some people have that impair the tricuspid valve's a...
Read more