A survey conducted by Bloomberg and Adox Research among over 100 portfolio managers, climate risk executives, and data management executives reveals the increasing demand for Environmental, Social, and Governance (ESG) data. The survey sheds light on firms’ intentions regarding ESG data spending and their approaches to its acquisition and management.
Key findings from the survey include:
- 92% of executives plan to increase ESG spending by at least 10%, with 18% planning to increase their spending by 50% or more.
- Top priorities for ESG data spend include ESG benchmarks and indices, company-reported data, ESG scores, and sustainable debt.
- Data quality and breadth of coverage are considered the most important criteria for selecting an ESG data provider.
- While 64% of respondents view themselves as ahead of the competition in ESG capabilities, almost 30% feel somewhat or significantly behind.
- 99% of executives agree that their organizations value ESG data due to its importance in keeping pace with peers, achieving a competitive advantage, and regulatory compliance.
However, managing ESG data poses challenges:
- Over 70% of firms take an ad hoc or decentralized approach to acquiring and managing ESG data.
- Constantly evolving and new ESG data content, managing multiple vendor data feeds, and aligning ESG content to existing entity data are considered the most challenging aspects of ESG data management.
- Cloud is the preferred technical delivery option for ESG data.
The survey highlights the growing recognition of ESG data’s significance and the increasing investments made by firms in ESG data acquisition and management. However, challenges related to data management, fragmentation, and consistency remain. The use of ESG data is becoming mainstream in financial workflows, but technical scalability and data transparency are prioritized for effective integration into existing datasets.
Bloomberg provides access to ESG data, research, and analytics through its platform, helping clients address ESG-related challenges and capitalize on the growing demand for sustainable investment information.
To view the full results of the survey, please click here.
By FCCT Editorial Team
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