ESG (Environmental, Social, and Governance) data plays a central role in identifying risks and opportunities related to the environment, society, and corporate governance. This article highlights the importance of ESG data for investors and presents the most important providers that are crucial for designing sustainable portfolios.
Why is ESG Data Now Indispensable?
ESG data has become essential today because it provides comprehensive insight into environmental, social and governance factors that are extremely important for companies and investors. They enable a better assessment of risks and opportunities associated with sustainability, ethical conduct and long-term performance. There is also a growing awareness that companies that position themselves positively in these areas could be more successful in the long term, which further increases interest in ESG data.
The Benefits of High-Quality ESG Data
High quality is of great value for various types of financial companies. Let's take a closer look:
Risk management: High-quality ESG data enables comprehensive risk assessment by taking into account environmental, social and governance factors. This helps identify and mitigate potential risks associated with sustainability and improves overall risk management strategies.
Informed decision-making: Access to reliable ESG data enables financial companies to make informed investment decisions that are in line with their values and long-term goals. It provides deeper insights into a company's sustainability performance, enabling more accurate valuations for investment decisions.
Improved performance evaluation: Robust ESG data enables a more holistic assessment of companies' sustainability performance. They enable comprehensive analysis and help financial institutions assess the impact of environmental and social factors on financial results and overall performance.
Transparency and accountability: High-quality ESG data promotes transparency of corporate practices and increases accountability of financial companies.
Regulatory compliance: Using reliable ESG data helps financial firms comply with evolving regulatory requirements related to sustainability reporting. Accurate data helps you meet compliance obligations more efficiently.
Competitive advantage: Incorporating high-quality ESG data gives financial companies a competitive advantage. They attract investors looking for responsible and transparent investment opportunities and position these companies as pioneers in ethical and sustainable finance.
Top 10 ESG Data Providers
Sustainlytics (By Morningstar)
Cost: $$$ - $$$$
Coverage: 13,000 companies
Type: inside-in (analyst based)
Frequency: Approximately every quarter
Bavest
Cost: $ - $$
Coverage:
9,000 (including small & mid caps + alternative data sources)
Type: Outside-In (AI-based)
Frequency: Approximately every quarter
Refinitive
Cost: $$$$
Coverage: 6,000 companies
Type: inside-in (analyst based)
Frequency: Approximately every quarter
ISS Global
Cost: $$$$
Coverage: 9,000 companies
Type: inside-in (analyst based)
Frequency: Approximately every quarter
MSCI
Cost: $$$ - $$$$
Coverage: 2,500 companies
Type: inside-in (analyst based)
Frequency: Approximately every quarter
ESGbook
Cost: $$$$
Coverage: 30,000 ETFs & funds, 8000 companies
Type: inside-in (analyst based)
Frequency: Approximately every quarter
Bloomberg
Cost: $$$$
Coverage: 11,000 companies
Type: inside-in (analyst based)
Frequency: Approximately every quarter
RepRisk
Cost: $$$
Coverage: 10,000 companies
Type: Outside-In (AI-based)
Frequency: Daily
S&P Global
Cost: $$$$
Coverage: 8,000 companies
Type: inside-in (analyst based)
Frequency: Approximately every quarter
FTSE Russel
Cost: $$$$
Coverage: 7,000 companies
Type: inside-in (analyst based)
Frequency: Approximately every quarter
Integrate innovative ESG data and analytics via Bavest
Discover the power of high-quality ESG data with Bavest. Gain insights that enable informed decisions and promote sustainable growth. Talk to us and schedule a demo to find out more!
