How Has the Environmental Social And Governance ESG Investment Analytics Market Size Evolved in Recent Years?
The environmental social and governance esg investment analytics market has seen considerable growth due to a variety of factors.
• The market size of the environmental, social and governance (ESG) investment analytics has seen a robust growth in the past few years. Its growth is expected to increase from $1.7 billion in 2024 to $2.01 billion in 2025, with a compound annual growth rate (CAGR) of 18.1%.
The historic growth can be credited to factors like increase in economic cuts, enhancements in risk management, growing requirement for tools and solutions, increased focus on supply chain management, and reputation management of companies.
What Are The Predictions for The Environmental Social And Governance ESG Investment Analytics Market in the Coming Years?
The environmental social and governance esg investment analytics market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of environmental, social and governance (ESG) investment analytics is anticipated to experience swift expansion in the upcoming years, reaching $3.88 billion by 2029 with a compound annual growth rate (CAGR) of 17.9%.
This expected growth during the forecast period can be linked to factors such as enhancements in operational efficiency, the increased focus on corporate social responsibility, the escalating significance of diversity and inclusion metrics, changes in consumer preferences, and the betterment of data quality. Prominent trends projected for the forecast period encompass the implementation of blockchain technology, the utilization of ESG ratings, the creation of real-time monitoring tools, the advancement in visualization tools, and the employment of internet of things (IoT) sensors.
Which Drivers Are Accelerating Growth In The Environmental Social And Governance ESG Investment Analytics Market?
The anticipated surge in the ESG investment analytics market is attributed to the escalating need for ESG data among investors. ESG data comprises information about a company's operations and its performance on sustainability and ethical matters, provided via specific policies and frameworks. Companies are continually urged to reveal particular ESG specifics such as their environmental impact, governance measures, and social initiatives. This openness permits investors to make better decisions while holding companies responsible for their actions. ESG investment analytics assist investors in making knowledgeable choices by incorporating ESG factors into their analysis, enabling a deeper comprehension of how companies handle sustainability and ethics-related risks and opportunities. For instance, the ESG Global Study released by Capital Group, a US-based financial services firm in May 2022, showed a rise in the acceptance of ESG data among investors, with 89% in 2022, up from 84% in 2021 of the 1,130 surveyed participants. Furthermore, 31% of European investors deem ESG data as crucial to their investment strategy, while 26% of investors worldwide consider it an important part of their investment plan. Hence, the escalating need for ESG information among investors will propel the ESG investment analytics market's growth.
What Are The Core Segments Of The Global Environmental Social And Governance ESG Investment Analytics Market?
The environmental, social and governance (ESG) investment analytics market covered in this report is segmented –
1) By Type: Addressing Environmental, Social And Governance (ESG) Expectations, Preparing Environmental, Social And Governance (ESG) Reports
2) By Organization Size: Large Enterprises, Small And Medium Enterprises (SMEs)
3) By Application: Financial Industry, Consumer, Retail
Subsegments:
1) By Addressing Environmental, Social, and Governance (ESG) Expectations: Environmental Performance Analytics, Social Impact Assessment, Governance Risk Analysis, Regulatory Compliance Tracking, Stakeholder Engagement Tools
2) By Preparing Environmental, Social, and Governance (ESG) Reports: ESG Reporting Software, Data Collection and Management Solutions, Benchmarking and Performance Measurement, Audit and Assurance Services, Customization and Framework Alignment
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What Emerging Trends Are Influencing The Growth Of The Environmental Social And Governance ESG Investment Analytics Market?
Key players in the ESG investment analytics market are increasingly integrating Artificial Intelligence (AI) to improve the precision of data, automate the evaluation of ESG measures, and provide extensive insights into corporate conduct and sustainability hazards. AI streamlines the ESG investment analytics process by effectively processing and analyzing a vast array of unstructured data, like news, reports, and social media, to spot ESG-related patterns and risks, equipping investors with knowledge about companies' sustainability and ethical performances. For instance, Nasdaq, a financial services firm based in the US, introduced Nasdaq Sustainable Lens in November 2023. This AI-enabled SaaS platform is specifically designed to facilitate and examine ESG data management in the finance industry, providing tools for summarization, benchmarking, and trend tracking over more than 9,000 companies' sustainability data. It revolutionizes ESG reporting by employing an analytical approach, eliminating the necessity for manual research through the use of advanced AI technology.
Who Are the Key Players In The Environmental Social And Governance ESG Investment Analytics Market?
Major companies operating in the ESG investment analytics market are:
• Deloitte Touche Tohmatsu Limited
• PricewaterhouseCoopers International Limited
• Ernst & Young Global Limited
• KPMG International Limited
• RSM International Ltd.
• Covestro AG
• S&P Global Inc.
• LSEG Data & Analytics
• Wolters Kluwer N.V.
• MSCI Inc.
• Conservice ESG
• Institutional Shareholder Services Inc.
• Sustainalytics B.V.
• Intelex Technologies Inc.
• RepRisk AG
• Vigeo Eiris
• Persefoni AI Inc.
• Measurabl Inc.
• IdealRatings Inc.
• Arabesque S-Ray GmbH
• Truvalue Labs Inc.
• Verisk Maplecroft
• ESG Enterprise
What Are The Regional Insights Into The Environmental Social And Governance ESG Investment Analytics Market?
Asia-Pacific was the largest region in the ESG investment analytics market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the ESG investment analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
