Strategic Focus: Five Ways Financial Services Firms Get Value From Climate Financial Data And Analytics

Published 23 February 2024 by Adam Barnard & Ryan Skinner &

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Executive Summary

The financial sector is increasingly leveraging climate financial data – a market that is poised to grow from $450 million in 2022 to over $1.3 billion by 2028. This surge is being driven by stakeholders demanding sustainable, net-zero-aligned strategies. Key applications encompass guiding investment strategies for institutional investors, enhancing asset manager engagements, informing asset owners and private equity investment decisions, aiding banks with risk assessment, and developing sustainable financial products. This Strategic Focus report helps leaders at financial services firms see how peers are using climate financial data to work towards climate and net zero goals, while addressing challenges in data management and application.

Table of contents

Climate financial data have the power to reshape financial sector priorities
Financial firms ramp up use of climate financial data, due to stakeholder pressure
The five primary applications of climate financial data and analytics
Climate data providers are innovating to support each buyer type

Table of figures

Figure 1. Five use cases of net zero data and analytics

About the authors

Adam Barnard

Principal Analyst

Adam is a Principal Analyst in the Verdantix Net Zero & Climate Risk practise. Prior to joining Verdantix, Adam was a Director at an environmentally focused US investment firm. Adam has previously held roles in London in investment management at Man Group, UBS and Morgan Stanley and in strategy at SABMiller in South Africa. Adam holds a Masters from Yale with a concentration on investment and the environment, a MBA with a concentration on impact investing and sustainability and a BCom(Honors) in Economics and Finance from the University of Cape Town

Ryan Skinner

Research Director, Net Zero & Climate Risk
Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zero strategies, carbon management, climate risk and technology. Prior to joining Verdantix, Ryan was a principal analyst at Forrester Research, where he initiated the research into ESG data and analytics offerings. He also has extensive experience of helping software companies with their messaging, positioning, market and technology strategies. Ryan studied at Duke University, the University of Manchester and the University of Oslo, and speaks Norwegian fluently.

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