Climate Financial Data And Analytics Solutions Benchmark Reveals The Four Leaders In The Market

Climate Financial Data And Analytics Solutions Benchmark Reveals The Four Leaders In The Market

London, UK. The market for climate financial data and analytics is rapidly growing, as financial institutions demand a transparent and reliable fact base to support investment and risk management decision-making. As a result, global spend on climate financial data and analytics is set to more than double from $468 million in 2022 to $1.3 billion in 2028, as organizations move beyond a disclosure mindset, and take action to reduce transition and physical climate risks. Despite this growing trend, some buyers are hesitant to fully commit, due to ESG backlash and increasing regulatory uncertainty.

In reaction to this complex operating environment, vendors are innovating to offer enhanced capabilities and forming partnerships to leverage strengths and gain a competitive edge. A new Verdantix benchmark report evaluating the 10 most prominent climate financial data and analytics providers in the market reveals that four firms – Bloomberg, London Stock Exchange Group (LSEG), MSCI and S&P Global – demonstrate the most comprehensive capabilities and market momentum.

The inaugural Green Quadrant: Climate Financial Data And Analytics Providers report offers sustainability executives within financial organizations invaluable insights for navigating this dynamic market, and for selecting the best-fit providers. Key report findings:

• Transparency is a top priority for buyers from financial institutions as they manage regulatory requirements, with many choosing to work with multiple providers to leverage individual strengths and address data gaps.
  
  
• Buyers prioritize platforms that integrate with existing internal systems, offering user-friendly interfaces, advanced visualizations and centralized access to climate financial data and analytics. Integration with traditional financial data is a key competitive advantage.
  
  
• Vendors are expanding their offerings by developing tools to assess nature-related impacts and dependencies, launching nature-specific products and partnering with external experts. For example, S&P Global collaborated with the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC) to create its Nature & Biodiversity Risk data set, while ISS ESG partnered with Quantis to develop its Biodiversity Impact Assessment Tool.
  
  
• Vendors and buyers are collaborating to streamline decision-making processes and developing risk metrics that seamlessly combine with traditional financial data. This is leading to data providers acquiring climate risk specialists to incorporate science-based approaches into their solutions, such as LSEG acquiring Refinitiv (2021), Moody’s acquisition of Risk Management Solutions (2021) and Ortec Finance of Predict Ability (2019).
  
  
• Vendors are harnessing generative AI to automate data collection, drive greater efficiency and enhance the user experience. Bloomberg AI Solutions, for instance, allows users to ask questions within the Bloomberg Terminal, with links to source documents. Clarity AI also has a GenAI solution that helps synthesize information and create reports.

 

“As financial institutions face growing pressures to address climate risks and invest for positive impact, demand is rapidly increasing for climate financial data and analytics solutions that can provide the tools and expertise to incorporate data into decision-making”, commented Emma Cutler, Senior Analyst, Verdantix. “While the appetite for innovative solutions is strong, regulatory uncertainty and evolving attitudes to ESG are creating hesitancy. In response, vendors are forming strategic partnerships to leverage unique strengths, make their organizations more resilient and gain a competitive edge."

To learn more, join the webinar: How To Choose Your Climate Financial Data And Analytics Provider, on 17 October. Register now.