Investor ESG Software Market Report: Size, Share and Outlook by 2031

The investor ESG software market was valued at approximately US$ 1.08 billion in 2024 and is projected to grow to US$ 3.36 billion by 2031. This market is expected to experience a compound annual growth rate (CAGR) of 17.6% from 2024 to 2031.

In North America, the investor ESG software market is further divided into segments, including the United States. The incorporation of generative AI into investor ESG software is anticipated to introduce innovative trends in the market in the near future. Generative AI enables investors to access, analyze, and interpret environmental, social, and governance (ESG) data more effectively. This technology is set to significantly enhance the analysis, reporting, and decision-making processes related to ESG data.

One of the primary advantages of integrating generative AI into ESG software is its capacity to automate the generation of intricate ESG reports. By swiftly analyzing extensive ESG data from diverse sources, generative AI can produce customized and insightful reports for investors. These reports can encompass standard metrics as well as predictive analyses that highlight emerging risks, opportunities, or trends in ESG performance. This automation not only saves investors valuable time but also ensures that the reports are accurate and comprehensive.

The integration of generative AI into investor ESG software is expected to lead to substantial improvements in data accuracy, reporting efficiency, and predictive analytics. For example, in July 2024, CO2 AI, a sustainability platform based in Paris, introduced Product Footprinting, a generative AI-driven solution designed to assist companies in calculating product carbon emissions and minimizing their environmental impact. This platform provides solutions that enable large and complex organizations to assess their impact and identify strategies for significant reductions, leveraging artificial intelligence. CO2 AI noted that their new solution addresses the demand for more precise and rapid product carbon footprinting, referencing a study conducted with BCG that revealed only 38% of companies receive sufficient product-level data from their suppliers.

Similarly, in April 2024, Infor, a leader in industry cloud solutions, launched Infor GenAI and ESG Reporting, aimed at helping clients improve productivity and monitor their environmental impact. Infor's extensive suite of modern solutions, which includes leading ERPs and supply chain tools, supports essential operations across various sectors such as manufacturing, distribution, healthcare, and public services. By merging the capabilities of GenAI with unique industry-specific insights, these solutions empower customers to effectively utilize the right data and workflows, thereby accelerating value realization. Additionally, these solutions adhere to stringent security and data privacy standards enforced by Infor's OS platform.

Moreover, by automating and personalizing ESG data analysis, generative AI will enable investors to make more informed, sustainable, and future-oriented investment decisions, further propelling the growth and adoption of ESG software within the investment sector.

The investor ESG software market is categorized based on end users into software and services. The software segment accounted for the largest share of the investor ESG software market in 2024. Investor ESG software platforms assist organizations in optimizing their ESG programs and understanding their exposure to business performance. For instance, EnHelix ESG software is a subscription-based SaaS application recognized in the financial sector. EnHelix facilitates ESG reporting and aids companies in transforming large data sets into actionable ESG reputation risk reports. This software is utilized by investors and capital market participants to assess corporate behavior and predict the future financial performance of market players.

Key players in the investor ESG software market include MSCI, Workiva Inc., Morningstar Sustainalytics, London Stock Exchange Group plc, Cority, Prophix Software Inc., SAP SE, Sphera, FactSet, and Bloomberg Finance L.P.. The market report also examines several other significant players to provide a comprehensive overview of the market and its ecosystem.

The overall market share for investor ESG software has been determined through a combination of primary and secondary research. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the investor ESG software market. This process aids in forming an overview and forecast of the market across all segments. Additionally, numerous primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This includes discussions with industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the investor ESG software market.