ESG investing has grown to unprecedented heights in recent years, driving massive new demand for comprehensive ESG data/analytics as well as expanded ESG index offerings to suit a variety of new investment styles. Both data and index providers are placing increased emphasis on these divisions to keep pace with the rapidly-changing ESG investing landscape according to new research published today by Burton-Taylor International Consulting, part of TP ICAP’s Data & Analytics division, Parameta Solutions.
“Index Providers are addressing investor calls for increased exposure to ESG-linked funds, specifically those centered around climate issues, as sustainability is placed further at the forefront of societal concern,” says Sean Eskildsen, analyst at Burton-Taylor. “Strong growth is likely to continue in coming years, though regulatory action and varying market conditions will test investor sentiment in the segment,” he adds.
“Driven by unabated investor interest and industry demand, financial data providers are newly focused on offering products and information that help market participants evaluate businesses’ adherence to environmental, social, and governance concerns,” says Adler Smith, analyst at Burton-Taylor, adding that “This demand for ESG data/analytics comes from all corners of capital markets, but is primarily concentrated with the buy-side.”
Burton-Taylor today announced the publication of two new reports covering both the ESG index and data industries. The ESG Index report analyzes global revenues by provider and gives insight into the drivers of ESG index growth. The ESG Data/Analytics report looks at the increasing role ESG data/analytics is playing in capital markets and how data providers are reacting to the change.
