Since its earliest introduction, ESG reporting has gone from a valuable extra to an essential facet of modern investing. In 2020 alone, 92% of Fortune 500 companies and 70% of Russell 1000 companies published sustainability reports — increases of 2% and 5%, respectively, since 2019. In order to generate comprehensive reports, reporting entities need the latest, most accurate ESG data covering a wide range of metrics, risk factors, and measurable outcomes.
For reliable, comprehensive data, companies turn to ESG data providers. These statistical specialists offer a range of informational solutions designed to help companies expand their sustainability programs and increase investor engagement and confidence.
What Types of ESG Data Do Providers Offer?
Market Data
Market data is any information related to prices, market values, commodities, equities, and other aspects of market trends. This includes any factors that concern long- and short-term operations and strategy. Providers like FTSE Russell, MSCI, and Bloomberg also offer ESG data solutions covering related topics, such as carbon emissions, fossil fuel reserves, and climate change.
ESG-Exclusive Data
As ESG reporting becomes ever more central to corporate sustainability goals, certain ESG data providers offer more than market analytics. These firms specialise in ESG- and sustainability-related data, providing everything from ESG data analytics to ESG scores. Using proprietary metrics, methodologies, and risk-assessment tools, these data providers compile information and generate assessments.
Specialised Data
Specialised ESG data providers focus on one or two aspects of ESG. Some concentrate on climate and environmental data alone, whereas others prioritise topics such as governance matters and community relations. This information can be a vital asset for those looking for ways to improve their ESG performance and identify potential risks and market opportunities.
Who are the Top ESG Data Providers?
Sustainalytics
A subsidiary of U.S. financial services firm Morningstar since 2020, Sustainalytics offers over 30 years of ESG expertise and has grown to cover 20,000 companies and 172 countries worldwide. Sustainalytics assessed material ESG risk, issuing reports that include a company rating, company risk, rich company analysis, material ESG issues, company events, and ESG risk decomposition.
MSCI
Sharing a top spot with Sustainalytics, MSCI is one of the most active and reliable ESG data providers. They have data reports on over 8,500 companies and 680,000 equity and fixed-income securities worldwide. In ESG investing, MSCI provides fund ratings, ESG indexes, impact solutions, ESG ratings, and sustainable finance solutions.
Bloomberg
Servicing over 14,000 companies, Bloomberg is a leading provider of ESG data and market data solutions. They also provide Bloomberg ESG Disclosure Scores with data organised into 2,000 fields. Their product includes historical data dating back to 2006, along with sector and country-specific data points. They also provide as-reported data and derived ratios.
ISS
Institutional Shareholder Services (ISS) offers ESG data analytics along with company, country, and fund ratings addressing topics ranging from human rights to corruption and climate change. ISS services 1,300 clients with operations in 29 global locations. Along with fund ratings, ESG index solutions, and ESG ratings and rankings, ISS also provides climate data, advisory services, and analytics.
FTSE Russell
FTSE Russell’s ESG ratings provide an overall rating comprising “Pillars and Themes”. These are based on over 300 individual indicator assessments applied as needed in each company’s unique circumstances. The ratings focus on over 7,200 companies, many of which are listed in the FTSE Global Equity Index Series. FTSE Russell has two core data models: ESG risks and ratings, and Green Revenues which observes revenue exposure to products contributing to environmental solutions.
S&P Global
S&P Global takes an unusual approach to gathering ESG data and generating ratings. They base scores on a combination of companies’ responses to their proprietary Corporate Sustainability Assessment and a selection of publicly available data. Over 8,000 companies are assessed based on over 1,000 data points.
Benefits of ESG Data Providers to Your Corporate Needs
Once gathered, ESG data can be used for corporate activities. Perhaps most notably, data providers can help companies to align their data with existing ESG reporting standards and frameworks. With multiple ESG reporting platforms mandated for use by leading stock markets and regulatory bodies, it can be a challenge to meet legal requirements and investors’ demands for high-quality, consistent ESG data.
Furthermore, dashboards and peer benchmarks recorded by ESG data providers offer a valuable basis for deriving insights into how companies can achieve greater levels of sustainability and profitability. Specialised data providers have the means and the methodologies needed to provide clear, consistent data. Thus, engaging them yields better results than attempting to collect the same information using in-house personnel and resources.
Lastly, with ESG reporting becoming mandatory in many jurisdictions, an additional body of research and evidence can be an extremely valuable asset for reporting entities. By working with an established ESG data provider, you’ll gain access to information gathered according to rigorously tested standards and methods. This guarantees uniformity, accuracy, and verifiability across all relevant topics and metrics.
Operate ESG Data with Convene ESG for Top-Quality Reporting
Once you’ve selected an ESG data provider and begun to build your company’s ESG database, use Convene ESG to transform your information into comprehensive, publication-ready reports. This full-service ESG reporting platform is built to process pertinent information from a wide array of ESG data sources. From broad-ranging dashboards and performance metrics to identifying risks and opportunities, Convene ESG turns ESG data into valuable company-specific insights.
Learn more about Convene ESG and find out how this reporting platform can help you simplify your ESG data collection.
