ESG data and scoring solutions, 2023: market update and vendor landscape

The increasing need to align investments to environmental, social and governance (ESG) regulatory reporting requirements, alongside sustainability preferences among some investors, is likely to spur demand for ESG-aligned investment strategies, and ESG data and scoring products. European regulations affecting investors are accelerating demand for ESG data, as all entities required to comply need robust datasets to answer regulatory questions. Meanwhile, globally, net inflows into visible ESG funds are helping vendors maintain double-digit growth rates.

A full ecosystem of solutions has grown around the sustainable and responsible investment management lifecycle, including investor suitability checks and questionnaires, ESG investment consensus ratings, ESG market risk solutions, ESG factors, managed ESG reference data services and composite ESG scoring engines. With data at the heart of ESG implementation, data management is an important consideration as asset managers attempt to build data platforms by combining best-of-breed components from multiple vendors. ESG data vendors are beginning to incorporate data management and data science capabilities to enhance their solutions’ comprehensiveness in terms of sourcing and speed of monitoring.

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