What Fueled The Previous Growth In The Environmental Social And Governance ESG Rating Services Market?
The environmental social and governance esg rating services market has seen considerable growth due to a variety of factors.
• The market size of environmental, social and governance (ESG) rating services has exhibited substantial growth recently. This market is set to expand from $11.06 billion in 2024 to $12.3 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 11.2%.
The augment in the historic era is due to factors such as enhanced corporate transparency, an upsurge in sustainable development objectives, an increase in public consciousness, shifting consumer preferences, and intensified investor inspection.
How Does the Forecast Look for the Environmental Social And Governance ESG Rating Services Market?
The environmental social and governance esg rating services market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for environmental, social, and governance (ESG) rating services is predicted to witness substantial growth over the subsequent few years. The forecast estimates a rise to $18.66 billion by 2029, experiencing a compound annual growth rate (CAGR) of 11.0%.
This growth during the forecast period could be credited to the establishment of climate change policies, financial benefits for businesses, a focus on supply chain transparency, a surge in sustainability-linked loans, and a heightened reliance on environmental impact evaluations. Key trends projected during this period encompass the implementation of green technologies, advancement in ESG metrics, adoption of circular economy strategies, digital revolution endeavours, and real-time ESG supervision.
What Are The Leading Drivers Of Growth In The Environmental Social And Governance ESG Rating Services Market?
The increasing consciousness about climate change is set to boost the expansion of the ESG rating services market in the future. This rising awareness is fueled by the escalating proof of its detrimental impacts like catastrophic weather conditions and degradation of the environment, alongside extensive media reportage and activism. The emphasis on ecological longevity and risk management is amplified through climate change, propelling businesses to pursue assessments of their climate-connective performance and resilience plans. For example, data from the UK Parliament's House of Commons Library revealed in December 2022, that a UK-based government body noted that the percentage of Britons expressing extreme or high-level concern over climate change had increased to 74% in 2022, a significant leap from 45% in the previous year. Consequently, the escalation in climate change consciousness is stimulating the development of the ESG rating services market.
How Are The Segments Defined Within The Global Environmental Social And Governance ESG Rating Services Market?
The environmental, social and governance (ESG) rating services market covered in this report is segmented –
1) By Type: Addressing Environmental, Social And Governance (ESG) Expectations, Preparing Environmental, Social And Governance (ESG) Reports, Assuring Environmental, Social And Governance (ESG) Data, Communicating Environmental, Social And Governance (ESG) Strategy, Other Types
2) By Organization Size: Large Enterprises, Small And Medium Enterprises (SMEs)
3) By Application: Financial Industry, Consumer And Retail, Industrial Manufacturing, Energy And Natural Resources, Real Estate, Other Applications
Subsegments:
1) By Addressing Environmental, Social, and Governance (ESG) Expectations: ESG Risk Assessment, ESG Performance Benchmarking, Sector-Specific ESG Guidance, Stakeholder Engagement Strategies
2) By Preparing Environmental, Social, and Governance (ESG) Reports: Standardized ESG Reporting Frameworks, Custom ESG Reporting Solutions, Data Collection and Analysis Tools, Performance Metrics Development
3) By Assuring Environmental, Social, and Governance (ESG) Data: Third-Party Verification Services, Internal Audit Support for ESG Data, Data Quality Assessment Tools, Compliance Auditing Services
4) By Communicating Environmental, Social, and Governance (ESG) Strategy: ESG Communication Frameworks, Stakeholder Reporting Tools, Digital Communication Platforms, Training and Capacity Building Programs
5) By Other Types: ESG Integration Services, Impact Measurement Services, Regulatory Compliance Advisory, Sustainability Strategy Consulting
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How Are New Trends Impacting The Size Of The Environmental Social And Governance ESG Rating Services Market?
Top companies engaged in the ESG rating services sector are creating AI-powered platforms to improve the precision and productivity of ESG evaluations, simplify the process of data analysis, and offer more valuable insights for investors and stakeholders. These AI-supported platforms deliver ESG rating services by automating the examination of extensive data collections, resulting in precise, real-time evaluations and practical insights around environmental, social, and governance factors. For example, ERM, a business consulting and services firm based in the UK, in February 2022, introduced ESG Fusion. This AI-operated platform delivers prompt, bespoke ESG ratings for privately-owned firms, aiding investors in making well-informed decisions supported by current insights. It combines real-time data and expert analysis to optimize ESG due diligence and performance measurement.
Who Are the Key Players In The Environmental Social And Governance ESG Rating Services Market?
Major companies operating in the ESG rating services market are:
• Deloitte Touche Tohmatsu Limited
• PricewaterhouseCoopers International Limited
• Ernst & Young Global Limited
• KPMG International Limited
• S&P Global Inc.
• Deutsche Börse AG
• Thomson Reuters Corporation
• LSEG Data & Analytics
• Bureau Veritas
• Moody's Corporation
• UL LLC
• MSCI Inc.
• Morningstar Inc.
• CRISIL Limited
• EcoVadis Inc.
• Institutional Shareholder Services Inc.
• Sustainalytics B.V.
• Confluence Technologies Inc.
• US Green Building Council
• RepRisk AG
• Vigeo Eiris
• Clarity AI Inc.
• Arabesque S-Ray GmbH
• Truvalue Labs Inc.
What Is The Most Dominant Region In The Environmental Social And Governance ESG Rating Services Market?
North America was the largest region in the ESG rating services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the ESG rating services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
