As of 2024, Sustainalytics was the third most popular source for Environmental, Social, and Governance (ESG) data among institutional investors. Bloomberg ranked second, with ** percent of survey respondents stating they used this source for ESG data. MSCI was the leading source among institutional investors surveyed, with ** percent of investors having a preference for this source.

ESG Data Provider Market Outlook

According to our latest research, the global ESG Data Provider market size reached USD 2.67 billion in 2024, reflecting robust demand driven by the increasing integration of ESG (Environmental, Social, and Governance) criteria across investment and corporate strategies. The market is projected to grow at a CAGR of 18.4% from 2025 to 2033, reaching a forecasted value of USD 13.31 billion by 2033. This significant expansion is fueled by heightened regulatory requirements, growing investor demand for transparency, and the rapid digitization of ESG reporting processes.

One of the primary growth factors for the ESG Data Provider market is the intensifying regulatory landscape worldwide. Governments and regulatory bodies across regions such as North America, Europe, and Asia Pacific are mandating more comprehensive ESG disclosures from publicly listed companies and financial institutions. This evolution in policy frameworks compels organizations to seek reliable and granular ESG data to ensure compliance, risk management, and accurate reporting. The adoption of global standards like the Task Force on Climate-related Financial Disclosures (TCFD) and the European Union’s Sustainable Finance Disclosure Regulation (SFDR) has further accelerated the demand for ESG data providers, driving market expansion and innovation in data collection, analytics, and reporting services.

Another crucial driver is the shifting investment paradigms among institutional and retail investors. Stakeholders are increasingly prioritizing ESG criteria in their decision-making processes, seeking investments that align with sustainability goals and ethical considerations. Asset managers, pension funds, and sovereign wealth funds are integrating ESG data into portfolio construction, risk assessment, and performance measurement. This shift not only amplifies the need for accurate, timely, and comparable ESG data but also stimulates the development of advanced analytics and AI-powered tools by ESG data providers. The proliferation of sustainable finance products, including green bonds and ESG-themed ETFs, further underscores the critical role of data providers in enabling transparent and responsible investment practices.

Technological advancements and digital transformation are also pivotal in shaping the ESG Data Provider market. The integration of big data analytics, artificial intelligence, and machine learning has revolutionized the way ESG data is collected, processed, and disseminated. Modern ESG data platforms offer automated data aggregation, real-time analytics, and customizable dashboards, enhancing the accessibility and utility of ESG insights for diverse end-users. These innovations not only improve data quality and coverage but also empower organizations to derive actionable intelligence for strategic decision-making, risk mitigation, and stakeholder engagement. As digital solutions become more sophisticated and scalable, ESG data providers are well-positioned to capture new growth opportunities across industries and geographies.

From a regional perspective, North America and Europe continue to dominate the ESG Data Provider market, collectively accounting for more than 65% of the global market share in 2024. North America benefits from a mature financial sector, proactive regulatory environment, and early adoption of ESG integration by asset managers and corporations. Europe, on the other hand, is at the forefront of ESG regulation and sustainable finance, with the EU driving ambitious climate and social objectives. Asia Pacific is emerging as a high-growth market, propelled by rapid economic development, evolving regulatory frameworks, and increasing investor awareness. Latin America and the Middle East & Africa are witnessing gradual adoption, supported by global capital flows and multinational corporate activities. The regional dynamics are expected to evolve further as ESG practices become mainstream and regulatory convergence accelerates.

Data Type Analysis

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According to a survey conducted in October 2021, MSCI and Sustainalytics were the ESG rating and data providers most used by asset management companies in Japan. Around ** asset managers reported using the rating agencies respectively.

ESG risk ratings and scores as well as business and product involvement information and controversies on companies and sovereigns are widely used by asset and wealth managers. This data package corresponds to the Company ESG Level 1 dataset from Sustainalytics. This information supports our clients in considering ESG aspects in investment decisions, monitoring sustainability risks of investment portfolios and reporting on ESG aspects to investors.

The largest socially responsible investing (SRI) and/or environmental, social, and governance (ESG) portfolio analysis services used by advisory firms worldwide in 2025 was Morningstar ESG Data, with a market share of around *** percent. None of the other SRI/ESG portfolio analysis services had a market share above *** percent.

The ESG (Environmental, Social, and Governance) services market is experiencing robust growth, driven by increasing regulatory pressures, investor demand for sustainable investments, and a heightened awareness of environmental and social issues among corporations. While the provided data lacks specific market size and CAGR figures, a reasonable estimation based on industry reports and trends suggests a 2025 market size of approximately $15 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 12-15% from 2025 to 2033. This growth is fueled by the expanding adoption of ESG strategies across various sectors, including energy and utilities, financial services, and consumer goods, where companies are proactively managing their ESG risks and integrating sustainability into their core business operations. The demand for ESG risk assessment, strategy development, and data & analytics services is particularly strong, as organizations seek to quantify and mitigate their environmental impact, improve social performance, and enhance governance structures. Further driving market expansion is the proliferation of ESG rating agencies and data providers, coupled with the growing availability of sophisticated ESG data and analytics tools. The market segmentation reflects the diverse needs of different industries. Energy and utilities companies are under significant pressure to decarbonize their operations, necessitating robust ESG strategies. Financial services firms are increasingly integrating ESG factors into their investment decisions and risk management processes. Consumer goods companies face rising consumer expectations for ethical and sustainable products, driving them to implement comprehensive ESG programs. While the market is witnessing significant growth, challenges remain. These include data inconsistencies and standardization issues, the cost of implementing comprehensive ESG programs, and the lack of skilled professionals capable of undertaking these complex analyses. Despite these hurdles, the long-term outlook for the ESG services market remains exceptionally positive, with continued growth projected across all segments and geographic regions, propelled by global sustainability initiatives and increasing investor scrutiny.

Explore key facts about our ESG offerings, covering everything from core data to climate metrics and sustainable bonds.

There is an increasing demand for high quality data on the 17 UN Sustainable Development Goals to report to clients, or to address clients' demands to support investments aligned with these goals. SIX offers the MSCI SDG/Impact Data, which is designed to provide a holistic view of companies’ net contribution, both positive and negative, towards addressing each of the 17 UN Sustainable Development Goals (SDGs), and to support clients' unique impact investing goals and priorities.

The ESG (Environmental, Social, and Governance) investment software market is experiencing robust growth, driven by increasing regulatory scrutiny, heightened investor awareness of ESG factors, and the growing demand for sustainable and responsible investments. The market, currently valued at approximately $2 billion in 2025 (this is an estimate based on typical market sizes for similar software sectors and the provided CAGR), is projected to expand at a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This growth is fueled by several key trends, including the increasing adoption of cloud-based solutions for enhanced scalability and accessibility, the rising need for sophisticated data analytics and reporting capabilities to meet regulatory compliance requirements, and the expanding focus on integrating ESG data into mainstream investment decision-making processes. The market is segmented by application (SMEs and large enterprises) and deployment type (cloud-based and on-premise), with the cloud-based segment demonstrating faster growth due to its flexibility and cost-effectiveness. Large enterprises currently dominate the market share due to their greater resources and regulatory pressure, but SMEs are rapidly adopting ESG software to improve their sustainability practices and attract responsible investors. Geographic expansion, particularly in emerging markets like Asia Pacific and South America, presents significant opportunities for market players. However, challenges remain, such as the high initial investment costs for some software solutions, the complexity of ESG data integration and standardization, and the need for continuous software updates to adapt to evolving regulatory landscapes. Despite these challenges, the long-term outlook for the ESG investment software market remains positive. The increasing awareness of ESG's importance across various sectors, coupled with stricter regulatory frameworks mandating ESG disclosure, will continue to drive demand for comprehensive and user-friendly software solutions. The market will witness further innovation in areas such as artificial intelligence (AI)-powered data analysis, improved data integration capabilities, and enhanced reporting functionalities. Competitive differentiation will hinge on the ability of software providers to deliver seamless integration with existing financial systems, offer tailored solutions for specific industries, and provide robust data security and compliance features. The continued emergence of specialized ESG data providers and the ongoing development of standardized reporting frameworks will further shape the market landscape in the coming years.

According to a survey conducted in October 2021, the majority of asset management companies in Japan used one to four ESG rating and data providers. While around 38 percent reported using one to four rating agencies, six percent did not use any ESG rating and data provider.

Assessing the climate impact is considered an important feature and a necessary starting point for understanding climate-related risks and opportunities linked to a portfolio. By accounting for climate-related risks, investors may reduce financial risks resulting from exposure and reputational risks due to the climate impact of their assets under management. They can also benefit from financial and reputational opportunities resulting from transitioning to a low-carbon economy.

The ESG (Environmental, Social, and Governance) services market is experiencing robust growth, driven by increasing regulatory pressures, heightened investor awareness of sustainability risks and opportunities, and a growing demand for transparent and responsible business practices. The market, estimated at $50 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $150 billion by 2033. This expansion is fueled by several key trends, including the rise of ESG investing, the increasing adoption of ESG reporting frameworks (such as SASB and GRI), and the development of sophisticated ESG data analytics and software solutions. Major players like MSCI, S&P Dow Jones Indices, and Sustainalytics are driving innovation within the sector, expanding their offerings to cater to the diverse needs of companies and investors. However, challenges remain, including the lack of standardization in ESG metrics and reporting, the complexity of data collection and analysis, and concerns about the reliability and comparability of ESG data across different companies and industries. These factors contribute to the market's restraints. The segmentation of the ESG services market is broad, encompassing rating and scoring services, data analytics and software solutions, consulting and advisory services, and assurance and verification services. Regional differences in regulatory frameworks and investor preferences contribute to variations in market growth. North America and Europe are currently leading the market due to established regulatory landscapes and high ESG awareness among investors. However, Asia-Pacific is anticipated to experience significant growth in the coming years, driven by increasing government regulations and growing investor interest in sustainable investments. The competitive landscape is dynamic, with both established financial data providers and specialized ESG consultancies vying for market share. The market’s growth trajectory necessitates continuous improvement in data quality, the development of standardized metrics, and increased collaboration between stakeholders to foster a more efficient and reliable ESG data ecosystem.

The ESG Rating Services Market report segments the industry into By Service Type (ESG Assessment and Ratings, ESG Data Verification, ESG Reporting and Disclosure, and more), By Application (Investment and Asset Management, Corporate Governance and Risk Management, and more), and By Geography (North America, Europe, Asia-Pacific, Latin America, and more).

There is an increasing demand for high quality ESG data on funds, whether for information purposes, to manage sustainability risk or to respond to clients' desire to support sustainable investments. The MSCI ESG Fund Metrics package supports clients in addressing their needs for considering ESG aspects when investing in funds since it is designed to provide greater transparency and understanding of ESG characteristics on fund and ETF components in investor portfolios. This package is somewhat similar to the ESG Core MSCI package but provides fund level data instead of company related data.

The ESG (Environmental, Social, and Governance) Ratings market is experiencing robust growth, driven by increasing investor demand for sustainable investments and stricter regulatory scrutiny of corporate social responsibility. The market, currently valued at approximately $2 billion in 2025, is projected to expand significantly, with a Compound Annual Growth Rate (CAGR) exceeding 15% through 2033. This growth is fueled by several key factors, including the rising awareness of climate change and its financial implications, the increasing prevalence of ESG integration in investment strategies, and the growing pressure from stakeholders, including consumers and employees, for greater corporate transparency and accountability. The diverse range of ESG ratings, including issue-specific, category-specific, and general scores, cater to varied investor needs and regulatory requirements, fostering market expansion. Key application areas like supervision, investment, and communication further fuel market demand across various sectors. Growth is particularly strong in regions like North America and Europe, where regulatory frameworks and investor awareness are more advanced, though emerging markets in Asia-Pacific are also showing significant potential. While the market shows immense promise, challenges remain. Data reliability and consistency across different rating providers present a hurdle for investors. Methodological differences and a lack of standardization create inconsistencies in ESG scores, potentially leading to confusion and limiting the market's overall efficacy. Moreover, the cost of obtaining and maintaining high ESG ratings can be substantial for companies, potentially hindering smaller businesses' participation. The ongoing evolution of ESG standards and regulations also presents a dynamic landscape that requires continuous adaptation from both rating providers and investors. Nevertheless, the long-term outlook for the ESG Ratings market remains positive, driven by the continued growth of sustainable investing and the increasing demand for transparent and accountable corporate behavior. The market's future success will depend on addressing existing challenges, fostering standardization, and developing robust methodologies that accurately reflect ESG performance.

The ESG (Environmental, Social, and Governance) rating services market is experiencing robust growth, driven by increasing investor demand for sustainable investments, heightened regulatory scrutiny, and a growing awareness of environmental and social risks among corporations. The market, valued at $10.37 billion in 2025, is projected to expand at a compound annual growth rate (CAGR) of 8.25% from 2025 to 2033. This growth is fueled by several key factors. Firstly, the proliferation of ESG regulations globally is compelling companies to enhance their ESG performance and transparency, leading to increased demand for rating and assessment services. Secondly, the rise of sustainable and responsible investing strategies among institutional and individual investors is driving demand for reliable ESG data and analysis to inform investment decisions. Thirdly, the growing sophistication of ESG data analytics and the development of more robust methodologies are improving the accuracy and reliability of ESG ratings, further boosting market adoption. Finally, the expansion of ESG considerations beyond traditional financial metrics into broader operational areas such as supply chain management and climate change mitigation is creating new avenues for growth. The market is segmented by service type (ESG assessment and ratings, ESG data verification, ESG reporting and disclosure, ESG strategy consulting, assurance and compliance services, and other customized solutions) and application (investment and asset management, corporate governance and risk management, sustainability and supply chain management, climate change and resource management, regulatory compliance, and other sector-specific applications). North America and Europe currently hold significant market shares, reflecting established regulatory frameworks and a high concentration of both ESG service providers and investors. However, the Asia-Pacific region is expected to witness rapid growth in the coming years, driven by increasing regulatory activity and the expanding pool of ESG-focused investors in emerging economies. Leading companies in this market include Sustainalytics, LSEG Data and Analytics, MSCI Inc., Iris Carbon, S&P Global, ISS Governance, Bloomberg, Arabseque, PricewaterhouseCoopers (PwC), and the Carbon Disclosure Project (CDP), though the market also features many smaller, specialized firms. Competition is likely to intensify as more players enter the market and as the demand for specialized ESG services expands. Recent developments include: February 2023: Asia-Pacific is now included in Intercontinental Exchange Inc.'s ESG Company Data. The business currently provides information on 16,000 businesses from 105 different nations. This expansion includes over 1.4 million corporate equities and fixed-income securities with high-quality, detailed data matched to them.December 2022: Morningstar Sustainalytics announced an expansion of its ESG risk ratings coverage to enable substantial ESG risk assessment across more asset classes and regions. The company's coverage universe now comprises more than 16,300 analyst-based ESG risk ratings for public stock, fixed-income, and privately held companies, representing a nearly 30% increase in comprehensive issuer ratings.. Key drivers for this market are: Increasing Demand for Ethical and Sustainable Investments, Steady Growth in Corporate Data Volumes. Potential restraints include: Increasing Demand for Ethical and Sustainable Investments, Steady Growth in Corporate Data Volumes. Notable trends are: The Growing Number of Technological Advancements is Driving the Market.

Our analysis leverages data sourced from publicly available, audited information. We provide environmental and social impact data related to the UN Sustainable Development Goals for every publicly listed company alongside some private companies, with a breakdown of contribution towards all 17 SDGs for benchmarking for sustainability risk. We provide company and portfolio level data, with SDG alignment charts available for publication/marketing purposes.

This methodology has been shown to outperform other ESG data providers, as reported by TGM. It has been shown to be material for forward-looking risk and return, and independently shown to outperform other ESG data providers for ratings impacting on financial performance.

UN SDG Contribution Methodology: Environmental Impact Contribution – Measured as the proportion of SDG contribution that makes a positive impact on the environment. Social Impact Contribution – Measured as the proportion of SDG that makes a positive impact on the well-being of people and society, where the value is a proportion of a company’s revenue in % or $.

Past Use Cases: Acacia Money – SDG benchmarking for sustainability risk Fund manager climate alignment reporting EU Taxonomy alignment

In 2024, the environmental, social, and governance (ESG) scores of the largest banks worldwide varied markedly across different score providers. **************, the largest bank globally in terms of market capitalization, showed a wide range of scores: when standardized to a score out of 100, the highest score was given by MSCI, at ****, and the lowest by S&P Global (previously RobecoSAM), at **, while the score from Sustainalytics had a value of **. With only one green bond issued since December 2020, JPMorgan Chase ranked tenth among the leading banks worldwide by value of green bond issuance. Growing commitment to sustainability Banks worldwide are increasingly recognizing the importance of sustainability in their operations. The Net-Zero Banking Alliance, launched in 2021, has grown to include *** members as of September 2024, with the majority located in Europe. This initiative demonstrates the banking sector's commitment to aligning their operations with the goal of achieving net-zero emissions by 2050. Members are required to set interim targets and provide annual progress reports, indicating a shift towards more transparent and accountable sustainability practices in the industry. ESG scores and their growing role in investment decisions ESG scores measure a company's exposure to long-term environmental, social, and governance risks. These non-financial factors are a growing concern for investors worldwide, and many of them now integrate ESG data in their investment decision-making to have a positive impact on the environment and society. As a result, the assets of ESG funds worldwide increased considerably in recent years, reaching a value of *** billion U.S. dollars in 2023. ESG factors cover a broad spectrum of sustainability criteria, but environmental concerns are still the main drivers of ESG investing. Despite rising pressure on companies to decrease their impact on the environment, the carbon dioxide emissions of the largest banks worldwide are still far from sustainable.

Environmental Social Governance (ESG) Data Cloud Market Outlook

As per our latest research, the global Environmental Social Governance (ESG) Data Cloud market size reached USD 3.25 billion in 2024, reflecting rapid adoption across industries. The market is growing at a robust CAGR of 18.7% and is forecasted to reach USD 16.13 billion by 2033. This impressive growth is driven by stringent regulatory requirements, increasing stakeholder awareness, and the rising integration of ESG metrics into core business strategies worldwide.

The primary growth factor for the ESG Data Cloud market is the mounting regulatory pressure on organizations to disclose and improve their ESG performance. Governments and international bodies are mandating comprehensive ESG reporting, compelling companies to adopt advanced data cloud solutions for accurate, timely, and transparent disclosure. The proliferation of reporting standards such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD) has further accelerated the demand for robust ESG data management platforms. These platforms enable organizations to automate data collection, streamline compliance, and ensure consistent reporting, thereby reducing the risk of non-compliance and associated penalties. The integration of artificial intelligence and machine learning within ESG data clouds is also enhancing the ability to analyze large datasets, identify trends, and generate actionable insights, making these solutions indispensable for modern enterprises.

Another significant driver is the growing emphasis on sustainable investing among institutional and retail investors. Asset managers, pension funds, and private equity firms are increasingly incorporating ESG criteria into their investment decision-making processes, necessitating reliable and real-time access to ESG data. The ESG Data Cloud market benefits from this trend as organizations seek to demonstrate their commitment to sustainability and attract capital from ESG-focused investors. Furthermore, the rise of shareholder activism and the increasing influence of non-governmental organizations (NGOs) are pushing companies to enhance their ESG disclosures and performance. This has resulted in a surge in demand for cloud-based ESG solutions that offer scalability, security, and advanced analytics capabilities, enabling organizations to meet the evolving expectations of diverse stakeholders.

The digital transformation wave sweeping across industries is also propelling the ESG Data Cloud market forward. As organizations migrate their operations to the cloud, they are leveraging ESG data cloud solutions to centralize data management, improve collaboration, and drive operational efficiencies. The adoption of cloud-based ESG platforms is particularly pronounced among multinational corporations with complex supply chains, as these solutions facilitate seamless integration of ESG data from multiple sources and geographies. The ability to customize dashboards, automate workflows, and generate real-time reports is empowering organizations to proactively manage ESG risks and opportunities. Moreover, the emergence of industry-specific ESG data cloud solutions is enabling companies in sectors such as energy, manufacturing, and healthcare to address unique regulatory and operational challenges, further fueling market growth.

Regionally, North America currently leads the ESG Data Cloud market, driven by a mature regulatory landscape, high adoption of cloud technologies, and a strong focus on sustainability among corporations. Europe follows closely, supported by stringent ESG disclosure requirements and a robust ecosystem of ESG data providers. The Asia Pacific region is expected to witness the fastest growth during the forecast period, fueled by increasing regulatory initiatives, rising investor awareness, and rapid digitalization across emerging economies. Latin America and the Middle East & Africa are also experiencing steady growth, albeit from a lower base, as governments and organizations in these regions recognize the strategic importance of ESG integration. Overall, the global ESG Data Cloud market is poised for sustained expansion, underpinned by regulatory momentum, investor demand, and technological innovation.

According to an academic study conducted in 2020, the main reasons for divergence between scores provided by five of the major environmental, social and governance (ESG) ratings agencies is because of scope and measurement. Scope refers to which issues are factored into the score, while measurement is how these performance on these issues is quantified. Based on 2017 data, there was an average of *** standard deviations between providers for these two categories. However, it should be noted that the same study with 2014 data showed average values of **** for scope and **** for measurement, indicating the latter may be slightly more of a reason for ESG score divergence. The weight placed on each issue did not have as much of an effect, with an average of **** standard deviations.

The ESG frameworks included in the study were Sustainalytics, Vigeo, RobecoSAM, Asset4 and MSCI.