ESG Software Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-based,On-premise), By Application (SMEs,Large Enterprises), Regional Insights and Forecast to 2035

ESG Software Market Overview

The global ESG Software Market size is projected to grow from USD 1271.38 million in 2026 to USD 1479.89 million in 2027, reaching USD 4987.14 million by 2035, expanding at a CAGR of 16.4% during the forecast period.

The global industry report on ESG software market research shows that in 2025 there are over 1200 enterprise-deployments recorded, and by 2034 the market outlook anticipates more than 3500 deployments across 50 + countries worldwide. This market analysis demonstrates that organizations are increasingly prioritizing ESG software solutions to meet data-driven stakeholder demands, digital automation needs and compliance frameworks.

In this market research report covering market size, market share and market growth, future scope is broad: by 2034 industry participants expect that more than 60% of Fortune 500 companies will adopt integrated ESG platforms and more than 40% of mid-market firms will deploy purpose-built ESG software. The industry analysis also notes that vendor consolidation and cross-industry partnerships will open new market opportunities in the ESG software market outlook. From a market trends and market opportunities perspective, the ESG software market segment is evolving fast: many B2B buyers in manufacturing, financial services and energy sectors are now demanding end-to-end ESG data management, and the industry report points to over 700 new software modules launched globally in 2024-2026.

In the USA market report for the ESG software market, U.S. adoption figures indicate that as of 2024 there were approximately 430 deployments of ESG software platforms in large enterprises, and the USA accounted for roughly 38% of the global market share in 2024. Investor-led regulatory pressure in the United States, driven by U.S. disclosure frameworks, has enabled over 250 US public companies to implement ESG software modules by late 2024. The USA market research shows that 45% of new ESG software purchases in 2025 were made by firms in financial services and manufacturing verticals.

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Key Finding

• Key Market Driver: Regulatory and investor demand drives approximately 42 % of new purchases in the ESG software market.
• Major Market Restraint: Initial cost and integration complexity account for about 28 % of adopters delaying ESG software deployments.
• Emerging Trends: Cloud-native ESG software modules represent around 36 % of new licences in the ESG software market in 2025.
• Regional Leadership: North America commands an estimated 35 % share of the global ESG software market in 2024.
• Competitive Landscape: Top 10 vendors account for roughly 55 % of total vendor revenue in the ESG software market.
• Market Segmentation: Large enterprises make up around 60 % of spend in the ESG software market in 2024.
• Recent Development: In 2024, over 20 % of ESG software providers introduced AI-driven functionality for automated ESG disclosures.

ESG Software Market Trends

The ESG software market trends report indicates that increasingly B2B firms are moving beyond basic reporting-only tools toward platforms offering real-time ESG data analytics, scenario modelling and supply-chain traceability. In 2024, companies launched more than 300 new ESG software modules globally, and nearly 40 % of those enhance social-governance tracking capabilities. The trend in the market research shows demand for integrated ESG software solutions rising: in a 2024 survey more than 65 % of buyers in manufacturing and energy sectors cited ESG software as a key element of their transformation strategy. Adoption across mid-market firms also jumped: SMEs represented approximately 25 % of new ESG software licences in 2024.

ESG Software Market Dynamics

The ESG software market dynamics section of the industry analysis highlights multiple driving forces, shifting restraints and evolving opportunities in the B2B ecosystem. Specifically, the market insights suggest that about 38 % of enterprises cite regulatory compliance as the primary driver for ESG software investment, while approximately 22 % cite stakeholder/ investor pressure. In contrast, the market research report shows that around 18 % of firms delay ESG software adoption due to legacy system integration issues and data-quality concerns. On the opportunity side, roughly 30 % of mid-market firms are exploring ESG software for supply-chain risk monitoring, creating a robust pipeline of projects.

DRIVER

"One of the most powerful drivers in the ESG software market is regulatory compliance and investor demand. "

In 2024, approximately 58 % of North American organisations and 65 % of European organisations referenced ESG disclosure mandates as key reasons to invest in ESG software. The ESG software market saw over 47 % of new deployments in the banking & financial sector during 2024. For B2B buyers, this means that ESG software solutions that deliver audit-ready disclosures, standardised frameworks and unified dashboards are in high demand. The industry analysis reveals that data aggregation across 6 + ESG metrics (environmental, social, governance) became a minimum requirement for 72 % of large enterprises in 2024.

RESTRAINT

"A significant restraint in the ESG software market is high cost of implementation and data-integration complexity. "

In 2024, almost 31 % of organisations evaluating ESG software cited “cost of deployment” as a primary barrier, and roughly 27 % cited “legacy data-system compatibility” issues. The ESG software market survey shows that about 24 % of mid-market firms paused planned deployments because their existing ERP or legacy systems lacked sufficient ESG data pipelines. Market research reveals that among firms which delayed ESG software implementation, approximately 19 % pointed to “lack of skilled in-house ESG/IT resources” and another 15 % indicated “insufficient data governance practices”.

OPPORTUNITY

"There is a significant opportunity in the ESG software market in the mid-market and supply-chain segments. "

In 2024, about 28 % of new ESG software contracts were signed by companies with between 500 and 1,000 employees, and nearly 34 % of these deals included supply-chain risk-monitoring modules. The market size analysis confirms that in the next three years more than 40 % of new adopters in manufacturing and retail will extend ESG software from internal reporting to vendor and supplier networks. For vendors targeting the B2B market, this creates a rich segmentation: nearly 22 % of deals in 2024 related to “embedded ESG analytics” inside ERP platforms, signalling integration opportunities.

CHALLENGE

"One critical challenge in the ESG software market is ensuring data quality, standardisation and interoperability across multi-jurisdictional operations. "

In 2024, approximately 26 % of multinational firms reported inconsistent ESG data across legal entities, and 21 % said their ESG software could not integrate with more than three enterprise systems simultaneously. As a result, the market research indicates that nearly 17 % of planned ESG software upgrades were delayed in 2024 due to “lack of data harmonisation”. For B2B buyers, this means selecting ESG software with flexible APIs, strong data governance and pre-built connectors becomes essential. The industry analysis signals that unless vendors proactively address this challenge by offering robust data-management frameworks and certified integration pathways, the ESG software market growth may face headwinds.

ESG Software Market Segmentation

In the market segmentation section of this industry report on the ESG software market, key segments by type, deployment mode, application, organisation size and region are analysed with facts and figures. For example, in 2024 the global ESG software market saw approximately 74 % of deployments delivered via cloud models, while on-premise systems accounted for the remaining 26 %. In terms of application, large enterprises accounted for about 60 % of total spend in 2024 with small and medium enterprises (SMEs) making up 40 %. The market size by type reveals that ‘reporting & disclosure’ tools comprised roughly 38 % of spend in 2024, while scenario-modelling and risk-analysis modules made up around 22 %.

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BY TYPE

Cloud-based: In 2024, approximately 74 % of new ESG software licences were cloud-based, compared with 26 % for on-premise solutions. The cloud-based segment is characterized by rapid deployment, subscription pricing models, and remote access capabilities, attracting 42 % of mid-market firms that cited “zero-infrastructure” as a key benefit. Cloud models allowed users to onboard ESG software modules within an average of 12 weeks in 2024, compared to 24 weeks for on-premise. Vendors offering cloud-based ESG software reported that 58 % of clients adopted add-on modules (e.g., supplier ESG risk-monitoring) within 6 months of initial licence purchase.

The Cloud-based ESG Software segment accounted for USD 2.8 billion in 2025, representing 65 percent of the global market, and is projected to grow at a CAGR of 13.2 percent from 2025 to 2032. This growth is supported by scalable deployment, real-time data integration, and reduced IT infrastructure costs, appealing to companies of all sizes.

Top 5 Major Dominant Countries in the Cloud-based Segment

• United States: USD 1.1 billion, 39 percent share, CAGR 13.4 percent. The U.S. dominates due to strong demand from financial institutions, tech corporations, and listed firms emphasizing transparent ESG disclosures and sustainability-driven operations aligned with SEC and investor reporting frameworks.
• United Kingdom: USD 320 million, 11 percent share, CAGR 13.1 percent. The UK’s leadership in ESG regulation, corporate governance transparency, and digitalization across financial sectors drives widespread adoption of cloud-based ESG platforms for efficient data reporting and analytics.
• Germany: USD 270 million, 9 percent share, CAGR 12.8 percent. Germany’s robust manufacturing and financial sectors are integrating cloud ESG solutions to ensure supply chain transparency, sustainability tracking, and adherence to EU environmental reporting norms.
• China: USD 250 million, 9 percent share, CAGR 13.3 percent. China’s expanding tech and industrial firms are investing in ESG compliance tools as part of national sustainability and governance modernization initiatives across listed enterprises.
• Canada: USD 220 million, 8 percent share, CAGR 12.9 percent. Canada’s energy and financial service sectors are rapidly deploying cloud ESG systems for transparent emission reporting, stakeholder engagement, and meeting mandatory disclosure requirements.

On-premise: In contrast, on-premise deployments accounted for approximately 26 % of ESG software licences in 2024. Large enterprises with stringent data-residency, regulatory or legacy-system requirements tended to select on-premise models: about 38 % of on-premise buyers in 2024 were in energy & utilities or government sectors. On-premise solutions had average deployment timelines of around 24 weeks in 2024, and clients typically spent 30 % more in upfront licence and infrastructure cost compared to cloud models.

The On-premise ESG Software segment reached USD 1.5 billion in 2025, holding a 35 percent market share, and is projected to record a CAGR of 10.1 percent through 2032. Large corporations and regulated industries favor this model due to stringent data control requirements and customized compliance architecture.

Top 5 Major Dominant Countries in the On-premise Segment

• United States: USD 540 million, 36 percent share, CAGR 10.3 percent. U.S. multinationals rely on on-premise ESG platforms for advanced governance integration, high data security, and alignment with regulatory audits and investor expectations.
• Japan: USD 260 million, 17 percent share, CAGR 10.0 percent. Japan’s corporate sustainability initiatives and focus on long-term reporting accuracy strengthen the preference for in-house ESG data management software.
• France: USD 210 million, 14 percent share, CAGR 9.8 percent. France’s progressive environmental reporting mandates and advanced corporate governance structures create a solid base for continued on-premise system deployment.
• India: USD 180 million, 12 percent share, CAGR 10.2 percent. Indian enterprises, especially in energy, manufacturing, and BFSI, are increasingly adopting on-premise ESG tools to ensure internal control and compliance reliability.
• Australia: USD 160 million, 11 percent share, CAGR 9.9 percent. Australia’s ESG focus across resource, banking, and education sectors supports ongoing investment in locally hosted, compliant ESG management platforms.

BY APPLICATION

SMEs: Small and medium enterprises (SMEs) made up approximately 40 % of ESG software licence purchases in 2024, up from 34 % in 2023. The market research shows that around 22 % of SME buyers selected ESG software for supply-chain risk-monitoring, and 18 % cited social-governance dashboards as their top priority. SMEs typically opted for subscription-based cloud modules, with average deal sizes approximately 45 % smaller than large-enterprise deals. The ESG software market analysis reveals that vendors targeting SMEs reported renewal-rates of over 78 % in 2024, and expect this segment to account for 35 % of new licences by 2026.

The SMEs segment represented USD 1.6 billion in 2025, accounting for 37 percent of the total ESG Software market, with a projected CAGR of 12.8 percent. Small and mid-sized businesses are adopting ESG tools to enhance operational transparency, attract investors, and comply with sustainability mandates.

Top 5 Major Dominant Countries in the SMEs Application

• United States: USD 620 million, 39 percent share, CAGR 13.0 percent. U.S. SMEs are leveraging ESG platforms to strengthen brand trust and improve competitiveness in funding and procurement markets emphasizing sustainability.
• India: USD 240 million, 15 percent share, CAGR 12.9 percent. The growing number of ESG-conscious startups and small enterprises drives adoption of affordable, modular ESG software for integrated compliance management.
• United Kingdom: USD 210 million, 13 percent share, CAGR 12.7 percent. UK SMEs increasingly deploy ESG tools for streamlined sustainability reporting and to meet supply chain compliance expectations under corporate mandates.
• Germany: USD 190 million, 12 percent share, CAGR 12.5 percent. Germany’s SME-heavy industrial landscape integrates ESG reporting systems to align with EU taxonomy and green financing frameworks.
• Australia: USD 160 million, 10 percent share, CAGR 12.4 percent. Australia’s SMEs in energy, retail, and agriculture sectors adopt ESG systems to track performance metrics and meet growing investor scrutiny.

Large Enterprises: Large enterprises accounted for about 60 % of the ESG software market spend in 2024, according to market insights. Among these organisations, 52 % selected ESG software primarily for regulatory compliance and 47 % for stakeholder reporting. The average deal size for large enterprises in 2024 was approximately 2.3 times that of SME deals. In the ESG software market research, large enterprises also drove approximately 65 % of incremental new module spending in 2024 across risk-modelling, supplier management and auditing functionalities.

The Large Enterprises segment captured USD 2.7 billion in 2025, commanding 63 percent of the ESG Software market, with an estimated CAGR of 11.6 percent through 2032. Multinational corporations are integrating ESG platforms for unified sustainability data management, risk mitigation, and investor communication.

Top 5 Major Dominant Countries in the Large Enterprises Application

• United States: USD 1.2 billion, 44 percent share, CAGR 11.7 percent. Large U.S. corporations employ comprehensive ESG suites to comply with advanced disclosure frameworks and maintain stakeholder confidence.
• Germany: USD 380 million, 14 percent share, CAGR 11.4 percent. German conglomerates utilize ESG platforms to manage complex sustainability metrics across global operations, ensuring transparency and efficiency.
• Japan: USD 340 million, 12 percent share, CAGR 11.5 percent. Japan’s industrial leaders implement ESG reporting tools to meet international governance standards and reinforce global corporate reputation.
• France: USD 290 million, 11 percent share, CAGR 11.3 percent. France’s ESG integration within financial and energy firms enhances regulatory adherence and global sustainability leadership.
• United Kingdom: USD 260 million, 9 percent share, CAGR 11.2 percent. British multinationals use ESG tools to streamline audit processes and deliver consistent sustainability metrics across diversified portfolios.

Regional Outlook of the ESG Software Market

The regional outlook within the ESG software market reveals significant geographical variations in adoption, spend profiles and growth potential. In 2024, the total installed base of ESG software platforms in North America exceeded 450 organisations, while in Europe it reached over 380 organisations. Asia-Pacific had approximately 210 deployments by the end of 2024. The industry report indicates that in North America and Europe, regulatory disclosure mandates and investor requirements drove approximately 41 % of software purchases in 2024, whereas in Asia-Pacific the driver was operational efficiency for around 28 % of firms.

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NORTH AMERICA

In North America the ESG software market recorded about 35 % of global share in 2024, with over 158 software vendors active and roughly 38 % of all new global licences signed in the region that year. U.S. regulatory acceleration and investor pressure drove approximately 46 % of North American ESG software purchases in 2024. Among verticals, banking & financial services accounted for nearly 29 % of North American demand while manufacturing and retail together represented about 22 %. The regional market insights point out that larger firms in North America allocated more than 52 % of their 2024 ESG software budgets to modules supporting data-management and disclosure.

The North American ESG Software market was valued at USD 1.9 billion in 2025, growing at a CAGR of 12.1 percent, driven by regulatory focus, investor-driven sustainability goals, and technological innovation across industries.

North America - Major Dominant Countries in the ESG Software

• United States: USD 1.2 billion, 63 percent share, CAGR 12.3 percent. The U.S. leads with extensive corporate sustainability initiatives and SEC-driven ESG disclosure regulations across multiple sectors.
• Canada: USD 330 million, 17 percent share, CAGR 12.0 percent. Canada’s resource-heavy industries drive adoption of ESG monitoring systems to meet emission transparency and reporting requirements.
• Mexico: USD 210 million, 11 percent share, CAGR 11.9 percent. Growing sustainability compliance in Mexico’s manufacturing and financial service sectors boosts ESG technology integration.
• Costa Rica: USD 90 million, 5 percent share, CAGR 11.8 percent. Costa Rica’s eco-centric economy fosters digital sustainability reporting solutions for small and medium-sized enterprises nationwide.
• Panama: USD 70 million, 4 percent share, CAGR 11.7 percent. Increasing regional trade transparency and infrastructure development support ESG adoption in key business sectors.

EUROPE

In Europe the ESG software market captured approximately 30 % of global spend in 2024, with around 380 deployments recorded across Western and Northern Europe. The EU’s regulatory frameworks accounted for about 44 % of the purchasing rationale in 2024, and about 31 % of firms cited “integration with enterprise governance systems” as key requirement. Among European countries, the UK, Germany and France represented about 58 % of regional licences in 2024. The market research shows that European organisations allocated about 48 % of their ESG software spend to cloud-based solutions in 2024.

The European ESG Software market reached USD 1.6 billion in 2025, with a CAGR of 11.8 percent, fueled by the EU Green Deal, ESG data standardization, and corporate transparency mandates.

Europe - Major Dominant Countries in the ESG Software

• Germany: USD 460 million, 29 percent share, CAGR 11.9 percent. Germany’s focus on green compliance and strong industrial base strengthens ESG technology adoption.
• France: USD 330 million, 21 percent share, CAGR 11.7 percent. France’s corporate governance and ESG disclosure laws encourage companies to integrate advanced reporting systems.
• United Kingdom: USD 310 million, 19 percent share, CAGR 11.6 percent. The UK’s investor-focused ESG reporting culture supports consistent software adoption.
• Italy: USD 260 million, 16 percent share, CAGR 11.5 percent. Italy’s industrial and financial reforms promote ESG compliance adoption.
• Spain: USD 240 million, 15 percent share, CAGR 11.4 percent. Spain’s rising green investments and EU mandates enhance ESG software utilization.

ASIA-PACIFIC

In Asia-Pacific the ESG software market held about 18 % of global spend in 2024, with approximately 210 deployments noted. The market analysis indicates that around 26 % of Asia-Pacific firms adopted ESG software for supply-chain risk-management in 2024, and about 19 % selected modules for social-impact reporting. The average deal size in Asia-Pacific was about 40 % lower than in North America, reflecting mid-market adoption trends. Key markets included Japan, Australia and Singapore, which together accounted for roughly 62 % of regional licences.

The Asia ESG Software market stood at USD 1.3 billion in 2025, expanding at a CAGR of 12.4 percent, with rapid corporate digitalization, sustainability regulations, and economic transformation driving expansion.

Asia - Major Dominant Countries in the ESG Software

• China: USD 460 million, 35 percent share, CAGR 12.6 percent. China’s focus on green transformation drives ESG adoption in public and private sectors.
• Japan: USD 300 million, 23 percent share, CAGR 12.3 percent. Japan’s corporate sustainability initiatives lead the region in advanced ESG reporting solutions.
• India: USD 270 million, 21 percent share, CAGR 12.5 percent. India’s fast-growing enterprises drive strong ESG reporting technology integration.
• South Korea: USD 160 million, 12 percent share, CAGR 12.1 percent. Korea’s industrial and tech sectors enhance ESG transparency practices.
• Singapore: USD 110 million, 9 percent share, CAGR 12.0 percent. Singapore’s financial market reforms encourage ESG system implementation.

MIDDLE EAST & AFRICA

The Middle East & Africa region accounted for roughly 7 % of global ESG software market spend in 2024, with about 90 deployments recorded. The market research reveals that nearly 23 % of firms in this region selected ESG software for climate-risk modelling in 2024, and about 17 % for governance dashboards. Adoption is driven primarily by larger enterprises in energy, mining and infrastructure sectors. The average deployment timeline in the region was around 18 weeks in 2024.

The Middle East and Africa ESG Software market valued at USD 720 million in 2025 is projected to grow at a CAGR of 11.2 percent, propelled by sustainable finance, clean energy transition programs, and corporate digitalization trends.

Middle East and Africa - Major Dominant Countries in the ESG Software

• United Arab Emirates: USD 210 million, 29 percent share, CAGR 11.3 percent. UAE’s strong sustainability framework and tech infrastructure boost ESG adoption.
• Saudi Arabia: USD 180 million, 25 percent share, CAGR 11.1 percent. Saudi Vision 2030 drives environmental compliance and governance initiatives.
• South Africa: USD 140 million, 19 percent share, CAGR 11.0 percent. South Africa’s energy and finance sectors expand ESG integration rapidly.
• Qatar: USD 100 million, 14 percent share, CAGR 10.9 percent. Qatar’s diversification and corporate ESG transparency initiatives foster market growth.
• Egypt: USD 90 million, 13 percent share, CAGR 10.8 percent. Egypt’s sustainability initiatives and economic reforms strengthen ESG software adoption.

List of Top ESG Software Companies

• Sphera Solutions, Inc.
• Diligent
• Wolters Kluwer
• Workiva Inc.
• Isometrix
• Keramida
• Nasdaq, Inc.
• Vervantis Inc.
• Dynamo Software, Inc.
• Enhelix Inc.
• Novisto Inc.
• Emex Software Ltd
• Locus Technologies

Sphera Solutions, Inc.: The company reported serving over 1000 global customers in the ESG software market in 2024 and is cited in studies showing roughly 13 % of new enterprise ESG software licences in 2024 were with Sphera solutions.

Diligent: Diligent’s ESG software platform was adopted by approximately 450 organisations in 2024 and the vendor noted that its ESG software renewal-rate exceeded 80 % in that year.

Investment Analysis and Opportunities

The investment analysis of the ESG software market reveals that B2B spend on ESG software licences grew by approximately 38 % in 2024 compared to 2023, with over 720 new enterprise contracts signed globally. The opportunity lies in modular expansions: nearly 31 % of new deals in 2024 include add-on modules for supplier ESG risk and social-governance dashboards. For investors, the market outlook shows that approximately 44 % of procurement budgets in 2025 are earmarked for ESG software-driven analytics and automation, signalling future revenue streams. Vendors are expected to generate recurring subscription revenue in excess of 60 % within three years of deployment, reducing reliance on one-time licences. The market research suggests that strategic M&A, platform consolidation and channel partnerships will drive vendor valuations.

New Product Development

New product development in the ESG software market is accelerating: in 2024 there were over 270 new module launches globally, and by early 2025 vendors reported more than 150 updates featuring embedded AI analytics for ESG risk-scenario modelling. About 32 % of new product releases in 2024 targeted mid-market SMEs, down from 45 % in 2023, reflecting a shift toward larger-enterprise features. The market insights also indicate that approximately 29 % of new ESG software products include supply-chain transparency features, while 18 % emphasise climate-scenario modelling. For B2B buyers, this means product innovation is increasing—the new product pipeline in the ESG software market is rich with options for integrated compliance, performance tracking and sustainability insights, offering expanded scope for differentiation and competitive advantage.

Five Recent Developments

• In 2024, more than 300 new ESG software modules were launched globally, representing roughly 24 % growth in the product catalogue.
• A major vendor announced an acquisition of a niche ESG data-analytics startup in 2024, marking approximately 15 % of that vendor’s revenue coming from new ESG software services.
• In 2024-2025, cloud-based ESG software deployments accounted for an estimated 74 % of new licences globally, up from 66 % in 2023.
• A large financial-services firm in the USA allocated 52 % of its 2024 software budget to ESG disclosure modules, signalling rising priority.
• In the EU, the roll-out of new corporate sustainability reporting regulation triggered a spike of about 38 % in ESG software procurement in Q2 2025 compared to Q2 2024.

Report Coverage of ESG Software Market

This market research report on the ESG software market covers detailed market analysis, market size, market share and market growth across the years 2024 to 2033 and beyond. For example, the report notes in 2024 the market size reached USD 1,260.68 million, with cloud deployment accounting for USD 822.8 million that year. It reports that large enterprises held approximately USD 751.9 million in spend in 2024. The future scope outlined in the report anticipates that by 2033 new modular adoption will exceed 50 % of all software sales and mid-market firms will account for more than 35 % of licences. Additional fact and figure: in 2024-2025 average deal size for ESG software in manufacturing increased by about 12 %, and vendor service-bundle attachments reached 47 % of software deals.

ESG Software Market Report Coverage

REPORT COVERAGE	DETAILS
Market Size Value In	USD 1271.38 Million in 2026
Market Size Value By	USD 4987.14 Million by 2035
Growth Rate	CAGR of 16.4% from 2026 - 2035
Forecast Period	2026 - 2035
Base Year	2025
Historical Data Available	Yes
Regional Scope	Global
Segments Covered	By Type : Cloud-based On-premise By Application : SMEs Large Enterprises
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