The ESG Data Landscape

How do you choose the right ESG data provider ?

Substantive Research published a report on its survey of the ESG data providers landscape, entitled How to Combat Greenwashing? Find the Right Data Partner, stating 300 data providers now share a 1-billion dollar market.

The findings of this survey include:

• Start-ups (1-5 years in existence) already make up 39% of market shares.
• Mid-level (6-10 years in existence) represent 24% of the market shares.
• Established firms (10+ years in existence) constitute the remaining 37%.
• 53% of the providers are generalists, in the sense that they provide all three Environmental, Social and Governance data to clients.
• 33% specialize in E, S or G only. Of these specialists, just 5% are targeted towards Social, 70% specialize in Environmental and 25% in Governance.
• 70% of the providers have developed their own ESG frameworks in combination with one or more of 20 other global sustainable reporting standards.

Spending on ESG data is on the rise at an annual growth rate of 20% and global ESG assets are expected to reach $53 trillion by 2025, on track to represent more than a third of projected global AuM.

Investors are now placing greater emphasis on company disclosures, ESG integration and ratings agencies, which is why finding trusted ESG data and analytics providers is now critical in building an efficient ESG strategy.