Green Quadrant: Climate Financial Data And Analytics Providers
13 Sep, 2024
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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.
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
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
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
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
Investment Metrics, XDI, Refinitiv, risQ, Task Force on Climate-related Financial Disclosures (TCFD), Goldman Sachs, MetLife, EVA Dimensions, GIC, Sustainalytics, BlackRock, European Central Bank, CDP, Microsoft, Aquantix, Ecofin, Santander, Royal Mail, Flood Re, International Energy Agency (IEA), Breckinridge Capital Advisors, Bloomberg, S&P Global, Climate Bonds Initiative, Black Knight, Ortec Finance, Ethix, Risk Management Solutions (RMS), Four Twenty Seven, State Street, Urgentem, BNY Mellon, SoftBank, Task Force on Nature-related Financial Disclosures (TCFD), FactSet, Deutsche Börse Group, Trove Research, riskthinking.AI, OMERS, NGFS (Network for Greening the Financial System), Crédit Agricole, The Reporting Exchange, Government Pension Investment Fund of Japan, RobecoSAM, Arabesque, OPTrust, Truevalue Labs, Predict Ability, PGIM, The Climate Service, New York Stock Exchange (NYSE), Morningstar, Oekom Research, Moody’s, ISS, Fabric, Qontigo, Trucost, Banco de Portugal, BNP Paribas, US Federal Reserve Board, Bank of America, LSEG (London Stock Exchange Group), London Stock Exchange, a.s.r., Coalition of Finance Ministers for Climate Action, Burgiss, Cambridge Econometrics, Vigeo Eiris, UK Natural History Museum, ICE (Intercontinental Exchange), Erasmus University Rotterdam, Glasgow Financial Alliance for Net Zero (GFANZ), Beyond Ratings, CNI, Southern California Edison, Clarity AI, UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), My Green Lab, Nordea, Horizon 2020, DWS, Carbon Delta, Baringa, Shades of Green, StatPro Group, Quantis, Lazard Asset Management, Foxberry, MSCI, Dun & Bradstreet, Confluence Technologies, HSBC, UN, Level 11 Analytics, CAER, Royal Bank of Canada, Citigroup, BloombergNEF, FTSE Russell
About the Authors
Emma Cutler
Principal Analyst
Emma is a Principal Analyst at Verdantix, with a current research agenda focusing on solutions for climate risk management. She has a background in simulation and statistical …
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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 cons…
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Ryan Skinner
Research Director
Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc…
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