Research and advisory provider Verdantix has projected spending on ESG reporting software will reach US$5.6 billion by 2029, four times its current level of US$1.3 billion. In a new report, Verdantix credits incoming regulations, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), and heightened investor and stakeholder demands for auditable sustainability data that minimises ESG-related risks with driving future market growth. Annual growth is expected to be 26% until 2029, with Europe leading this surge at a compound annual growth rate of 29%. Verdantix noted that the phased implementation of the CSRD, along with complementary measures such as the EU Corporate Sustainability Due Diligence Directive, will drive rapid adoption among more than 50,000 EU firms and more than 1,000 non-EU organisations and stimulating growth. North America and Asia are also set to see strong annual growth of 25% and 24%, respectively. “Global ESG reporting software spend is projected to surge, peaking between 2026 and 2028, before stabilising,” said Kim Knickle, Research Director of the ESG and Sustainability practice at Verdantix. “As businesses face ever-evolving complexities, robust, adaptable reporting technologies are critical to ensure transparency, build stakeholder trust and maintain a competitive edge. As adoption accelerates, these systems will become integral to how businesses operate in an evolving sustainability landscape.”
