Rising Preference For Sustainable Investment to Provide Lucrative Opportunities for Investor ESG Software Market Growth During Forecast Period
The top countries such as the US, Japan, the UK, Russia, and Australia are focusing on making sustainable investments. The US is most concerned about making sustainable investments, conducting 483,000 searches each year, which is 324,000 more than the country in second place. Even though their population of 328,200,000, they conducted 1,472 online searches for sustainable investments per million people (122 per month). Additionally, on average, Japan has the second-largest number of searches for sustainable investments worldwide. With a population of 126,500,000 people, the nation looks for sustainable investments 1,257 times per year on average per million people. The UK has the third-largest number of sustainable investment searches per year, 111,120 on average. Compared to the UK’s population of 66,650,000, the country conducts 1,667 online searches per million people per year for sustainable investments (138 per month). Thus, the above-mentioned data indicates the rising preference for sustainable investment across these countries, which is further impacting the investor ESG software market growth.
Investor ESG Software Market: Industry Overview
The investor ESG software market is segmented based on component and organization size. Based on component, the investor ESG software market is segmented into software and services. Based on enterprise size, the investor ESG software market is bifurcated into large enterprise and small & medium enterprises. By region, the investor ESG software market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
The global investor ESG Software market is segmented into five major regions: North America, Europe, APAC, MEA, and SAM. In 2022, Europe led the global investor ESG software market with a substantial revenue share, followed by North America and APAC. In Europe, there has been a rising demand for sustainable investment. Till November 2020, according to the paper published in collaboration with the European Fund and Asset Management Association’s (EFAMA) member associations and strategy consultants at INDEFI, a total of US$ 12.85 trillion worth of assets takes some level of ESG factor into consideration, with strategies largely categorized into two types: exclusion or systematic integration of ESG risks and opportunities. At a product level, ESG integration was among the most common strategies, with nearly 16% of total fund and mandate assets managed this way. In Europe, investment firms are increasingly aware of the ESG factor, which, in turn, heavily impacts investment strategies. According to the analysis, 2019 was the key year when environmental, social, and governance investing started gaining traction in Europe and at a global level. With a focus on ESG, it has been recognized that investors have experienced lower volatility, thereby leading to improved risk-adjusted returns. All such factors contribute to the growth of the investor ESG software market size in Europe.
Investor ESG Software Market: Competitive Landscape and Key Developments
CLARITY AI, PLANA.EARTH GMBH (PLAN A), DATAMARAN, ARABESQUE GROUP, S&P GLOBAL (SUSTAINABLE1), COLLIBRA (OWN ANALYTICS), Goby; Greenstone+ Ltd, Refinitiv and WeSustain GmbH are among the leading market players profiled in the investor ESG software market report. Several other essential market players were analyzed for a holistic view of the market and its ecosystem. The report provides detailed market insights, which help the key players strategize their market growth. A few developments are mentioned below:
- In November 2022, Capital.com, a high-growth European investment trading platform, announced a strategic agreement with Refinitiv to provide investors and traders with environmental, social, and governance (ESG) data. With this agreement, traders directly access ESG scores and financial data from the Capital.com platform to help them make sustainable investment and trading decisions.
- In September 2021, Conservice announced the acquisition of Goby, an ESG platform serving the commercial real estate and fund management industries. The acquisition enabled Conservice clients to reduce their environmental impact, achieve their sustainability goals, and increase their return on investment. The addition of Goby enabled Conservice to offer clients a comprehensive ESG solution, from data capture to analysis and disclosure.