Green Quadrant: Climate Financial Data And Analytics Providers

Published 13 September 2024 by Emma Cutler, Gus Brewer & Ryan Skinner,
Climate Financial Data Climate Risk Digital Tech Energy Transition Financed Emissions Nature Data And Analytics Net Zero & Climate Risk Net Zero Targets Transition Risk Green Quadrant

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Executive Summary

This report provides an independent, fact-based benchmark of 10 prominent climate financial data and analytics providers. Based on the proprietary Verdantix Green Quadrant methodology, our analysis draws on vendor responses to a 50-point questionnaire, live product briefings and customer interviews to assess vendors across 11 capability categories and 11 measures of market momentum. The market for climate financial data and analytics has developed in recent years, as financial institutions seek transparent climate data and analytics to support decision-making for financial product development, investment allocation, portfolio optimization, climate-related risk mitigation and valuations. As a result, data providers have innovated to offer capabilities spanning physical and transition risk analysis at the asset and portfolio levels, net zero targets and tracking, transition plans, biodiversity and nature, carbon offsets and renewable energy certificates (RECs), and climate change opportunities.

Table of contents

Summary for decision-makers
The state of the climate financial data and analytics market
The climate financial data and analytics market is growing, as interest in green finance skyrockets
Climate data and analytics are a necessary part of financial institutions’ activities
Financial services firms use climate data to inform strategy and ensure compliance
Buyers want transparency and recency when data are available, and effective modelling when they are not
Financial data providers position themselves in an uncertain market
Vendors join forces to take advantage of unique strengths and gain a competitive edge
New products address sophisticated use cases
Green Quadrant for climate financial data and analytics
Green Quadrant methodology
Evaluated firms and inclusion criteria
Evaluation criteria for climate financial data and analytics vendors
Bloomberg overview
Analyst insight: Bloomberg offers diverse climate data and analytics in an integrated platform for financial analysis
Clarity AI overview
Analyst insight: Clarity AI has broad offerings across GHG emissions, nature and climate risk, with multiple last-mile reporting solutions
ICE overview
Analyst insight: ICE applies experience with fixed income to address an under-served segment of the climate risk market
ISS ESG overview
Analyst insight: ISS ESG offers strong GHG data sets and engagement tools
LSEG overview
Analyst insight: LSEG provides tremendous depth of raw firm-level climate data
Moody’s overview
Analyst insight: Moody’s offers advanced climate risk modelling capabilities via its integrated solutions
Morningstar overview
Analyst insight: Morningstar focuses on transition credibility analysis and management scores
MSCI overview
Analyst insight: MSCI offers detailed carbon data sets and qualitative insights
Ortec Finance overview
Analyst insight: Ortec Finance specializes in climate risk analysis for large asset owners
S&P Global overview
Analyst insight: S&P Global offers high-quality data and services for customized analysis

Table of figures

Figure 1. Push from the CEO, new regulations and investor interest drive activity on climate initiatives in financial services firms
Figure 2. Financial services firms already experience material impacts from climate change
Figure 3. Weakening climate policies are a large threat to firms’ climate targets
Figure 4. A majority of financial services firms plan to increase spend on climate risk digital solutions in the next two years
Figure 5. Acquisitions in the climate financial data and analytics market, 2019-2024
Figure 6. Capability criteria for climate financial data and analytics
Figure 7. Momentum criteria for climate financial data and analytics
Figure 8. Vendor criteria scores (Capabilities)
Figure 9. Vendor criteria scores (Momentum)
Figure 10. Green Quadrant for climate financial data and analytics providers 2024

Organisations mentioned

a.s.r., Aquantix, Arabesque, Banco de Portugal, Bank of America, Baringa, Beyond Ratings, Black Knight, BlackRock, Bloomberg, BloombergNEF, BNP Paribas, BNY Mellon, Breckinridge Capital Advisors, Burgiss, CAER, Cambridge Econometrics, Carbon Delta, CDP, Citigroup, Clarity AI, Climate Bonds Initiative, CNI, Coalition of Finance Ministers for Climate Action, Confluence Technologies, Crédit Agricole, Deutsche Börse Group, Dun & Bradstreet, DWS, Ecofin, Erasmus University Rotterdam, Ethix, European Central Bank, EVA Dimensions, Fabric, FactSet, Flood Re, Four Twenty Seven, Foxberry, FTSE Russell, GIC, Glasgow Financial Alliance for Net Zero (GFANZ), Goldman Sachs, Government Pension Investment Fund of Japan, Horizon 2020, HSBC, ICE (Intercontinental Exchange), International Energy Agency (IEA), Investment Metrics, ISS, Lazard Asset Management, Level 11 Analytics, London Stock Exchange, LSEG (London Stock Exchange Group), MetLife, Microsoft, Moody’s, Morningstar, MSCI, My Green Lab, New York Stock Exchange (NYSE), NGFS (Network for Greening the Financial System), Nordea, Oekom Research, OMERS, OPTrust, Ortec Finance, PGIM, Predict Ability, Qontigo, Quantis, Refinitiv, Risk Management Solutions (RMS), riskthinking.AI, risQ, RobecoSAM, Royal Bank of Canada, Royal Mail, S&P Global, Santander, Shades of Green, SoftBank, Southern California Edison, State Street, StatPro Group, Sustainalytics, Task Force on Climate-related Financial Disclosures (TCFD), Task Force on Nature-related Financial Disclosures (TCFD), The Climate Service, The Reporting Exchange, Trove Research, Trucost, Truevalue Labs, UK Natural History Museum, UN, UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), Urgentem, US Federal Reserve Board, Vigeo Eiris, XDI

About the authors

Emma Cutler

Senior Analyst
Emma is a Senior Analyst in the Verdantix Net Zero & Climate Risk practice. Her current research agenda focuses on physical and transition climate risk, climate resilience and adaptation. She has a background in simulation and statistical modelling applied to climate adaptation, coastal management and international development. She holds a PhD in Systems Engineering from Dartmouth College and a BA in Mathematics and Environmental Studies from Bowdoin College.

Gus Brewer

Analyst
Gus is an Analyst in the Verdantix Net Zero & Climate Risk practice. Prior to joining Verdantix, Gus worked at Rio ESG, where he gained experience as a sustainability consultant, specializing in carbon accounting and environmental strategy. Gus holds a BA in Geography from the University of Exeter and a MSc in Carbon Management from the University of Edinburgh.

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.