Based on a sample of over 550 organizations and using bottom-up forecasting method, it is the world’s first market-sizing study for the integrated ESG, Sustainability, & Impact sector. And of the 550-plus players profiled, more than 50 were based in India.
NEW DELHI (India CSR Exclusive): As the global economy transitions into a new paradigm called “Capitalism 2.0,” “Impact Economy,” or “Conscious Capitalism,” the need for Environmental, Social, and Governance (ESG), Sustainability and Impact Measurement and Management (IMM) has become more critical.
A recent study conducted by Aspire Circle and Aspire Impact in India provides a comprehensive look at this fast-evolving field, projecting that the IMM market will surge to a staggering $31.2 billion by 2030 (1 USD = 74.26 INR). This growth is predicted to occur at a Compound Annual Growth Rate (CAGR) of 15%.
Capitalism 2.0: Embracing ESG, Sustainability, and Impact
With the financial sector gradually integrating ESG, sustainability, and impact goals, assessment, and reporting transparency, the IMM market has witnessed a substantial expansion. According to Aspire Impact, the IMM market grew from $2 billion in 2010 to $7.7 billion in 2020.
This global trend has influenced India significantly, which is now gearing up to become a substantial IMM market in the Asia-Pacific region, alongside Singapore.
Aspire Impact’s Role in Shaping India’s IMM Landscape
Aspire Circle and Aspire Impact have been instrumental in shaping the IMM landscape in India. Both were founded by Amit Bhatia, with Aspire Circle established in 2007 and Aspire Impact in 2020.
The duo introduced the world’s first market-sizing study for the integrated ESG, Sustainability, & Impact sector, which covered over 550 global organizations, including more than 50 based in India.
In 2020, they launched India and the Global South’s first set of Impact Standards for corporations and non-profits using an independent, standards-based 4P (Product, People, Planet & Policy) framework with over 150 KPIs. Aspire Impact is also set to launch its ESG Impact Ratings & ESG Risk Ratings in FY24.
Important Highlights
- World’s first market-sizing study on the ESG, Sustainability & Impact measurement & management market (or IMM), was released by Aspire Circle & Aspire Impact today, under the aegis of their Impact Future Project, launched in 2020.
- Key Finding: As per the study, the Global IMM market is poised for a 4X growth between 2020 &2030, from $8 to $32 billion.
- India is a significant IMM market in Asia-Pacific with $531 million in projected revenues by 2030; up from $137 million in 2020
- India’s Business Responsibility & Sustainability Reporting or BRSR to catalyze the IMM market along with increasing voluntary Impact reporting by corporations.
- In 2022, Aspire Impact launched India and Global South’s first set of Impact Assessment Standards & Ratings for corporations and non-profits, under the aegis of this Impact Future Project.
The Shift Towards Mandatory ESG and Sustainability Reporting
With governments worldwide making ESG and Sustainability reporting compulsory, there has been an influx of new entrants in the market. This shift, coupled with growing consumer awareness, has fueled the growth of the IMM market. However, the proliferation of frameworks, standards, approaches, and methodologies has led to market fragmentation, complicating standardization for impact measurement.
The Five Pillars of a Well-Developed IMM Ecosystem
The study also categorizes the IMM ecosystem into five distinct segments: IMM Consulting and Services; Databases, Indices, Ratings and Rankings; Software and Technology; Executive Education & Training; and Principles, Frameworks, Standards, and Coalitions. The Databases, Indices, Ratings, and Rankings segment is predicted to grow the steepest at a CAGR of 30%.
Key Figures in the IMM Market (2010-2030)
| Year | Global IMM Market Size (USD Billion) |
|---|---|
| 2010 | 2 |
| 2020 | 7.7 |
| 2030 | 31.2 (projected) |
CAGR of IMM Market Segments (2023-2030)
| Segment | CAGR (%) |
|---|---|
| Databases, Indices, Ratings, and Rankings | 30 |
| Software and Technology | 22 |
| IMM Consulting and Services | 11 |
| Executive Education & Training |
Growth in the number of players
With regulators worldwide pivoting towards mandatory ESG and Sustainability reporting from the hitherto voluntary disclosures, coupled with persistent prodding by an increasingly conscientious consumer society, the impact economy and the broader impact movement has accelerated as well as resonated throughout the world. As a result, there has been a spectacular growth in the number of players either entering the market for the first time, or existing businesses diversifying into ESG, Sustainability, & Impact.
However simultaneously, there has also been a proliferation of frameworks, standards, approaches, principles, methodologies, technologies, etc leading not just to a problem of plenty and fragmentation of the market but also delaying global consensus on standardization for impact measurement. With this in mind, the study apart from ‘sizing up’ the market across geographies also outlines fived distinct segments constituting a well-developed IMM ecosystem.
They are as follows:
- IMM Consulting and Services;
- Databases, Indices,
- Ratings and Rankings;
- Software and Technology;
- Executive Education & Training; and
- Principles, Frameworks, Standards and Coalitions.
According to the study, while Databases, Indices, Ratings, and Rankings segmentis to grow the steepest at 30% CAGR followed by IMM Software and Technology market at 22% CAGR, IMM Consulting and Services and Executive Education & Training segments would grow at 11% CAGR each by 2030.
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