What Financial Institutions Really Want From Climate Data Vendors

Take note: financial institutions are no longer just looking for climate data. They’re demanding solutions that are transparent, scientifically grounded, seamlessly integrated, financially actionable, and scalable across asset classes and geographies.

In preparation for our upcoming Buyer’s Guide on climate financial data and analytics (CFD&A) solutions – set to publish in September 2025 – Verdantix conducted an in-depth questionnaire to uncover what truly drives purchasing decisions for asset managers, commercial banks, insurers and private equity firms. While these decision-makers share a common goal of managing assets in a climate-conscious world, their operational needs vary widely. Vendors that can meet this shared objective while tailoring their offerings to specialized requirements are best positioned to lead in a rapidly evolving market.

Our research highlights four primary drivers for financial institutions engaging with CFD&A vendors:

• Transparency, explainability and scientifically grounded methodologies.
  Buyers of CFD&A solutions require clear documentation of data, analytics and models used because of risk management concerns, comparability across platforms and replicability in internal calculations. Financial institutions that report on climate-related financial risks because of either regulations or investor pressure need to be able to stand firm on their disclosures. In the US, for example, each data point disclosed in a prospectus or financial statement may be subject to SEC review. Inaccurate or false disclosures could cause reputational harm, financial penalties and ultimately a loss of market share. Financial institutions also have boards they report to, most on at least a quarterly basis. Vendors state that a common reason for financial institutions to seek their services is how they transform scientifically rigorous models into explainable outputs that non-climate-experts can understand.
  
• Integration flexibility and intuitive user interfaces.
  Financial institutions of different sizes and types integrate CFD&A solutions into their systems in diverse ways, depending on their specific operational needs and technological infrastructure. Larger firms may have their own platforms, requiring APIs and custom data feeds. Other smaller organizations may require more support through an end-to-end Saas platform. Whatever their requirements, vendors cited that clients value solutions that integrate into existing workflows and are easy to use for non-technical users.
  
• Decision-ready, financially quantified outputs.
  Financial institutions are increasingly prioritizing solutions that translate climate risks into financial metrics, enabling them to assess portfolio alignment and exposure. Metrics like implied temperature rise (ITR) and value-at-risk (VaR) help financial institutions to identify leaders and laggards in the low-carbon transition, as well as to prioritize risk management in investments that are more exposed to physical risks. Financial institutions also value support with complex climate risk modelling – including scenario analysis – and alignment with regulatory and voluntary frameworks.
  
• Depth of coverage and scalability.
  Financial institutions cite that gaps in data coverage, such as asset classes or geolocation, limit insights into the overall climate risk of their investments and assets. Financial institutions favour CFD&A vendors that have broad multi-asset class coverage and can provide granular geospatial insights. Additionally, businesses seek out features such as modular product architecture that can build as firms become more fluent in climate risk assessment and white labelling.

Vendors must continue to deepen their understanding of buyer priorities, benchmark their offerings against market standards and refine their position to stay competitive in key areas of climate financial analytics.