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 UnionÂ’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.

ESG Data for Retail Investors is becoming increasingly crucial as more individual investors seek to align their portfolios with their personal values and sustainability goals. Retail investors are now more informed and aware of the impact of their investments on environmental, social, and governance factors. They demand transparency and accountability from companies, prompting a surge in the availability of ESG data tailored specifically for this segment. ESG data providers are responding by developing user-friendly platforms and tools that cater to the unique needs of retail investors, offering insights into the ESG performance of companies and funds. This democratization of ESG data empowers retail investors to make informed decisions, fostering a more inclusive and responsible investment landscape. As the interest in sustainable investing grows, the role of ESG data in guiding retail investment choices is set to expand, driving further innovation and accessibility in the market.

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 inte

As of 2024, Sustainalytics was the third most popular source for Environmental, Social, and Governance (ESG) data among institutional investors. Bloomberg ranked second, with 62 percent of survey respondents stating they used this source for ESG data. MSCI was the leading source among institutional investors surveyed, with 69 percent of investors having a preference for this source.

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.

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.

ESG Data Provider Liability Market Outlook

According to our latest research, the global ESG Data Provider Liability market size reached USD 1.42 billion in 2024, reflecting a robust industry expansion. The market is poised to grow at a CAGR of 18.7% from 2025 to 2033, with the forecasted market size projected to reach USD 6.24 billion by 2033. This remarkable growth is primarily driven by the increasing regulatory scrutiny, rising demand for transparency in environmental, social, and governance (ESG) disclosures, and the growing reliance on third-party ESG data for investment and compliance decisions.

The surge in demand for ESG data provider liability solutions is largely attributed to the intensifying global focus on sustainable investing and responsible business practices. As investors, regulators, and stakeholders place greater emphasis on ESG criteria, the accuracy and integrity of ESG data have become paramount. This has led to heightened accountability for ESG data providers, who now face legal and reputational risks if their data is found to be inaccurate or misleading. Furthermore, the proliferation of ESG regulations across various jurisdictions, such as the European Union’s Sustainable Finance Disclosure Regulation (SFDR) and the U.S. Securities and Exchange Commission’s (SEC) proposed ESG disclosure requirements, has significantly increased the need for reliable ESG data and robust liability frameworks. These factors collectively drive the growth and evolution of the ESG Data Provider Liability market, as organizations seek to mitigate risks and ensure compliance with evolving standards.

Another key growth factor is the rapid digital transformation within the financial services sector, which has amplified the integration of ESG data into investment processes and risk management frameworks. The adoption of advanced analytics, artificial intelligence, and big data technologies has enabled asset managers, institutional investors, and corporates to leverage ESG data for more sophisticated risk assessment and decision-making. However, this increased reliance on third-party ESG data also exposes organizations to potential liabilities if the data is flawed or misrepresented. As a result, there is a growing demand for specialized liability services, such as data verification, auditing, and reporting, to enhance data quality and build stakeholder trust. This trend is expected to further accelerate the expansion of the ESG Data Provider Liability market in the coming years.

The market is also being propelled by the growing recognition of ESG risks as material financial risks that can impact long-term value creation. As ESG considerations become integral to investment strategies, investors and corporates are increasingly holding data providers accountable for the accuracy and reliability of ESG information. This shift has led to the emergence of new business models and service offerings, including liability insurance, legal advisory, and third-party assurance services, aimed at mitigating the risks associated with ESG data provision. Additionally, the rise of shareholder activism and litigation related to ESG issues has underscored the importance of robust liability frameworks, further fueling market growth.

Regionally, North America and Europe are at the forefront of the ESG Data Provider Liability market, driven by stringent regulatory requirements and a mature investment ecosystem. However, Asia Pacific is emerging as a significant growth region, supported by increasing ESG adoption among corporates and investors, as well as evolving regulatory landscapes in countries such as Japan, Australia, and Singapore. Latin America and the Middle East & Africa are also witnessing gradual uptake, albeit at a slower pace, as awareness of ESG risks and opportunities continues to grow. The regional dynamics are expected to evolve rapidly, with cross-border collaborations and harmonization of ESG standards playing a pivotal role in shaping the global market.

Service Type Analysis

The ESG Data Provider Liability market is segmented by service type into data collection, data analytics, data verification, reporting services, and others. Data collection forms the foundation of the ESG data value chain, as the accuracy and comprehensiveness of raw data directly impact the reliability of subsequent analytics and reporting. Providers in this segment are increasingly leverag

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 ** percent reported using one to four rating agencies, *** percent did not use any ESG rating and data provider.

Our impact valuation data allows investors to measure, value and benchmark impacts of business activities across Natural, Human and Financial Capital KPIs.

Presented in the form of economic values, GIST's approach gives investors a common yardstick by which to understand materiality fully and accurately, so that they can manage risks, identify hidden alpha, and make informed decisions to stay ahead of the curve.

Investors can use our ESG data to screen potential investments, manage and track ESG performance across their portfolios, and clearly communicate materiality across all ESG dimensions.

Why use GIST's impact valuation data?

1. Measure all impacts of a company on shareholders and society - not just carbon / environmental impacts GIST calculates a company's impact across all four capitals - Natural, Human, Social and Financial, covering 18 main KPIs and 350+ sub-KPIs. Analysts are looking for as much data as possible on hidden alpha - and GIST provides coverage across all material impacts of a company's activities that might present a future risk - or an opportunity.

2. Compare easily across different metrics GIST uses scientific and economic modelling to provide accurate calculations of the impacts of a company in economic terms - providing a $ value of the impact on stakeholders and society. Analysts find themselves trying to make sense of fundamentally different metrics - parts per million of air pollution, tonnes of GHG emissions, gallons of water consumed, m2 land use change. GIST allows apples-to-apples comparison by converting all these different impacts into $ values (which are geography-specific), so you can understand the relative size of a company's air pollution impacts against its water consumption impacts, for example.

3. Benchmark performance across a portfolio, and within and across sectors Most sustainability scores, ratings and rankings evaluate companies within their sectors. This creates artificial distinctions and makes it difficult for analysts to measure how a company is performing in absolute terms (compared to relative grading). GIST calculates absolute impact, measured in $ values, to provide a simple, straightforward analysis that can be applied within sectors, and across sectors, to compare all the companies in a portfolio against each other accurately and make informed decisions.

4. Identify and manage material risks More traditional views of ‘risk’ have typically focused on the direct risk to a company’s P&L, and its ‘produced’ or ‘financial’ capital. These are risks that come from environmental dependencies (e.g. logistics companies threatened by storms/cyclones, agricultural companies threatened by crop failure, etc.) GIST takes a broader view and also measure risks that come from impacts of a company - not just what affects a company’s P&L directly, but what affects assets of society (natural, social, human capital) and is therefore an externality at risk of eventually being internalized - through regulation or otherwise. Assets in the oil and gas industry that have been a stranded as a result of regulatory and legal action are a good example of this risk becoming reality.

5. Understand how impact changes based on location GIST uses a granular, location-specific approach which means that with location data for activities (e.g., air pollution, waste), we can calculate the impact on shareholders and society based on local context - environmental, ecological, health, socioeconomic and demographic, so we can make more accurate estimates for example for a city in Ghana vs. a city in Sweden. As disclosure is expected to increase dramatically in the next 2 years, GIST's methodology is equipped with a level of resolution that can provide insights that are constantly increasing in precision.

The ESG Rating Services Market is Segmented by Service Type (ESG Ratings, ESG Data & Scores, and More), End-User (Asset Managers, Asset Owners & Pension Funds, and More), Asset-Class Coverage (Equity Instruments, Fixed-Income (Corporate & Sovereign), Private Markets & Alternatives, Real Assets (Infrastructure / Real Estate), and More), and Geography. The Market Forecasts are Provided in Value (USD).

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.

ESG Data Vendor Aggregation Market Outlook

According to our latest research, the ESG Data Vendor Aggregation market size reached USD 2.14 billion globally in 2024, propelled by a robust demand for comprehensive Environmental, Social, and Governance (ESG) data solutions across financial and corporate sectors. The market is expected to advance at a CAGR of 17.6% from 2025 to 2033, reaching an estimated value of USD 7.34 billion by 2033. This remarkable growth is driven by the increasing integration of ESG criteria into investment decision-making, regulatory mandates, and the growing emphasis on sustainability reporting and risk management.

The primary growth factor for the ESG Data Vendor Aggregation market is the accelerating pace of ESG integration across investment portfolios and corporate strategies. Institutional investors, asset managers, and financial institutions are under mounting pressure from stakeholders and regulators to incorporate ESG considerations into their risk assessments and investment decisions. As a result, there is a surging demand for high-quality, comprehensive, and standardized ESG data that can be aggregated from multiple sources, validated, and analyzed to provide actionable insights. The proliferation of ESG frameworks and the evolving regulatory landscape—such as the EU Sustainable Finance Disclosure Regulation (SFDR) and the US SEC’s climate-related disclosures—are compelling organizations to seek reliable ESG data vendor aggregation services that can streamline compliance and enhance transparency.

Another critical factor fueling the market’s expansion is the increasing complexity and volume of ESG data sources. Companies and investors are grappling with disparate data sets, ranging from public disclosures and proprietary databases to alternative data such as satellite imagery and social media analytics. This complexity necessitates robust data aggregation and analytics platforms capable of integrating, validating, and harmonizing ESG data from multiple channels. Vendors that offer advanced data aggregation, analytics, and reporting solutions are witnessing heightened demand, as organizations strive to make sense of vast and varied ESG information to inform strategic decisions and stakeholder communications.

Technological advancements in data analytics, artificial intelligence, and cloud computing are further propelling the ESG Data Vendor Aggregation market. The adoption of AI-driven analytics and machine learning algorithms is enhancing the accuracy, reliability, and timeliness of ESG data aggregation and validation processes. Cloud-based platforms are enabling scalable and flexible deployment of ESG data solutions, making them accessible to a broader range of organizations, including small and medium enterprises. These innovations are not only improving the quality and accessibility of ESG data but also reducing operational costs and facilitating real-time insights, thus accelerating market growth.

From a regional perspective, North America and Europe are leading the ESG Data Vendor Aggregation market, accounting for the majority of global revenues in 2024. North America’s dominance is attributed to stringent regulatory requirements, a sophisticated financial ecosystem, and early adoption of ESG frameworks. Europe, driven by robust policy initiatives and investor activism, is rapidly expanding its ESG data vendor landscape. The Asia Pacific region is exhibiting the highest growth rate, fueled by rising awareness of ESG issues, regulatory developments, and increasing foreign investment in sustainable assets. Latin America and the Middle East & Africa, while still emerging, are witnessing growing traction as multinational corporations and local stakeholders prioritize ESG integration and reporting.

Service Type Analysis

The ESG Data Vendor Aggregation market is segmented by service type into Data Aggregation, Data Analytics, Data Validation, Reporting Solutions, and Others. Data Aggregation services form the backbone of the market, as organizations increasingly seek to consolidate ESG data from a myriad of sources, including public disclosures, proprietary databases, and alternative datasets. The complexity of ESG data—spanning environmental metrics, social indicators, and governance factors—necessitates advanced aggregation capabilities to ensure data completeness, consistency, and comparability. Vendors specializing in data aggregation are leveraging autom

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.

Goal 13 of the United Nations Sustainable Development Goals (SDG) - climate action - was the most targeted by global ESG ETFs in 2025. Among the 600 ESG ETFs that targeted the SDGs, 338 targeted the 13th goal. Affordable and clean energy (goal number 7) was the second most targeted goal, with 65 ETFs as of May 2025. Institutional investors primarily review company reports for underlying holdings as a method for ESG ETF evaluation, so fund managers must focus on companies with strong ESG practices and transparent sustainability reporting. What is Sustainable investing? Sustainable investing is becoming increasingly important in the financial world. In its broadest form, sustainable investing is where investment decisions incorporate how a company manages risks associated with environmental, social, and governance (ESG) issues. Many investors like the idea of making money while simultaneously catering to the growing demand for greater emphasis on the ESG scores of companies. ESG scores are the simplest way to incorporate environmental, social, and governance concerns into investment strategies because they provide standardized values that investors can use to compare companies' performance on ESG concerns. Why have ESG ETFs seen a rise in popularity? Investors are becoming more interested in ESG ETFs lately. Between 2014 and 2024, the number of ESG ETFs worldwide experienced a significant increase of nearly tenfold. This surge in interest and investment can be partially attributed to consumers' increased awareness, who prefer to support businesses that align with their values and make positive contributions to society and the environment. Moreover, regulators and policymakers are increasingly interested in ESG as they seek assistance from the corporate sector in resolving issues such as climate change, workplace diversity, and human rights.

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.

AI-Driven ESG Reporting Market Outlook

The global AI-Driven ESG Reporting market size reached USD 2.18 billion in 2024, according to our latest research, and is expected to grow at a robust CAGR of 21.3% during the forecast period, reaching USD 14.45 billion by 2033. This significant growth is primarily fueled by increasing regulatory demands, rising stakeholder expectations for transparency, and the rapid adoption of artificial intelligence to streamline Environmental, Social, and Governance (ESG) reporting processes. As businesses worldwide face mounting pressure to demonstrate their sustainability credentials, the integration of advanced AI technologies into ESG frameworks has become a critical differentiator and value driver.

One of the primary growth factors for the AI-Driven ESG Reporting market is the escalating regulatory landscape across major economies. Governments and regulatory bodies are mandating more rigorous ESG disclosures, compelling organizations to adopt sophisticated solutions that ensure compliance, accuracy, and efficiency. AI-driven platforms enable automated data collection, real-time monitoring, and advanced analytics, reducing manual intervention and minimizing the risk of human error. This capability is particularly crucial as companies navigate complex, evolving ESG frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the US Securities and Exchange Commission’s climate disclosure rules. The ability of AI to adapt to regulatory changes and deliver actionable insights positions it as an indispensable tool for modern ESG reporting.

Another key driver is the growing demand from investors, customers, and other stakeholders for transparent, reliable, and timely ESG information. Organizations are increasingly recognizing that robust ESG performance is directly linked to long-term value creation and risk mitigation. AI-powered ESG reporting solutions facilitate the integration of disparate data sources, enhance data quality, and provide predictive analytics that support better decision-making. These capabilities empower organizations to move beyond compliance and leverage ESG data as a strategic asset, driving competitive advantage and fostering stakeholder trust. As sustainability becomes a boardroom priority, the adoption of AI-driven platforms is accelerating across industries and geographies.

The proliferation of digital transformation initiatives, especially post-pandemic, has further accelerated the adoption of AI-Driven ESG Reporting solutions. Organizations are increasingly seeking scalable, cloud-based platforms that can handle the growing volume and complexity of ESG data. AI technologies such as natural language processing, machine learning, and robotic process automation are being integrated into ESG workflows to automate repetitive tasks, extract insights from unstructured data, and provide real-time reporting capabilities. This digital shift is particularly pronounced in sectors with high compliance requirements, such as banking, energy, and healthcare, where timely and accurate ESG reporting is essential for maintaining stakeholder confidence and regulatory approval.

Regionally, North America dominated the AI-Driven ESG Reporting market in 2024, accounting for the largest share, followed by Europe and Asia Pacific. The strong presence of leading technology vendors, advanced regulatory frameworks, and widespread adoption of ESG practices in the United States and Canada have driven market growth in the region. Europe continues to see rapid expansion, propelled by stringent sustainability regulations and a mature corporate governance culture. Meanwhile, Asia Pacific is emerging as a high-growth market, fueled by increasing government initiatives, rising investor awareness, and the digitalization of corporate reporting processes. Latin America and the Middle East & Africa are also witnessing steady adoption, albeit at a slower pace, as ESG awareness and regulatory requirements continue to evolve.

Component Analysis

The AI-Driven ESG Reporting market by component is segmented into software and services, each playing a pivotal role in shaping the industry landscape. Software solutions form the backbone of the market, enabling organizations to automate ESG data collection, processing, and analysis. These platforms leverage advanced AI algorithms to extract, normalize, and validate data from multiple sources, ensurin

As of 2024, Hewlett Packard Enterprise Company was placed in the number-*** spot by the JUST Capital annual survey. This survey reviews America’s largest publicly traded companies in relation to environmental, social, and corporate governance (ESG) responsibility. The survey operated a sample group of over ***** respondents, revising five major categories each carrying a different weight. Upon gathering the public opinion of leading publicly traded firms, data was evaluated in relevance to the weighted importance of each ESG category. Bank of America Corp. took the ****** place spot in the overall company rankings, receiving *** points in the highest weighted category, "workers". Evolving investor criteria When reviewing ESG drivers, institutional investors placed significant weight on ESG ratings when making investment choices. While regional taxonomy alignment had minimal impact, ESG ratings emerged as the top factor influencing investment decisions. This shift has indicated a growing sophistication in how investors evaluate companies' sustainability efforts. Interestingly, many investors have developed their own ESG rating criteria when evaluating financial securities, such as ETFs, demonstrating a desire for more tailored and nuanced assessments of corporate responsibility. Consumer preferences driving change The impact of ESG factors has extended beyond the investment world, significantly influencing consumer behavior, particularly among younger demographics. For instance, over ** percent of Gen Z Hispanics in the U.S. consider eco-friendly packaging a key factor in their purchasing decisions. This trend, along with concerns about animal welfare, natural products, and fair labor practices, highlights the growing importance of ESG considerations in shaping market demand. As consumers and investors increasingly prioritize these factors, companies will likely face pressure to improve their ESG performance to remain competitive.

ESG Data Feeds for Capitals Market Outlook

According to our latest research, the global ESG Data Feeds for Capitals market size reached USD 2.1 billion in 2024, with a robust compound annual growth rate (CAGR) of 15.2% observed over recent years. This upward trajectory is expected to continue, with the market projected to achieve a value of USD 5.4 billion by 2033 as per the calculated CAGR. The accelerating demand for ESG (Environmental, Social, Governance) data integration into capital markets, driven by regulatory mandates and investor preferences for sustainable investments, stands out as a primary growth factor in this dynamic sector.

The growth of the ESG Data Feeds for Capitals market is fundamentally underpinned by the increasing emphasis on sustainable finance and responsible investing worldwide. Asset managers, banks, and institutional investors are rapidly integrating ESG data into their decision-making frameworks to meet both regulatory requirements and the expectations of socially conscious investors. The proliferation of ESG-focused funds and financial products has intensified the need for accurate, timely, and comprehensive ESG data feeds. Additionally, global sustainability initiatives, such as the United Nations Principles for Responsible Investment (UN PRI) and the European Union’s Sustainable Finance Disclosure Regulation (SFDR), are compelling financial institutions to adopt ESG data solutions at scale, further fueling market expansion.

Another significant growth driver is the advancement in data analytics and technology platforms that enable seamless delivery and integration of ESG data. The rise of APIs, sophisticated data platforms, and custom feeds allows financial institutions to incorporate ESG insights directly into their investment models, risk management systems, and compliance workflows. This technological evolution not only enhances the accessibility and usability of ESG data but also enables real-time analysis and decision-making. As a result, both buy-side and sell-side market participants are increasingly deploying ESG data feeds to gain a competitive edge, optimize portfolio performance, and align with evolving regulatory frameworks.

Furthermore, heightened stakeholder awareness and activism regarding environmental stewardship, social responsibility, and corporate governance are compelling corporations and financial institutions alike to prioritize ESG criteria. The growing body of evidence linking ESG performance with long-term financial returns is prompting capital market participants to demand more granular, transparent, and standardized ESG data. This demand is being met by specialized ESG data providers who are expanding their offerings to cover diverse asset classes, geographies, and industry sectors. The convergence of regulatory pressure, investor demand, and technological innovation is thus creating a fertile environment for sustained growth in the ESG Data Feeds for Capitals market.

From a regional perspective, North America and Europe collectively dominate the ESG Data Feeds for Capitals market, accounting for a majority share due to stringent regulatory frameworks and early adoption of ESG integration by financial institutions. Asia Pacific is rapidly emerging as a high-growth region, driven by regulatory reforms, burgeoning investor interest in sustainable finance, and the expansion of regional ESG reporting standards. Meanwhile, Latin America and the Middle East & Africa are witnessing steady adoption, with local market nuances and regulatory developments shaping the pace and depth of ESG data integration. The interplay of global and regional trends is expected to drive differentiated growth trajectories across these major markets.

Data Type Analysis

The Data Type segment in the ESG Data Feeds for Capitals market comprises Environmental, Social, Governance, and Combined ESG data. Environmental data encompasses metrics related to climate change, carbon emissions, resource usage, waste management, and biodiversity. The growing urgency to address climate risks and comply with international agreements such as the Paris Accord has propelled demand for granular environmental data. Financial institutions are increasingly using this data to assess the climate resilience of their portfolios and align with net-zero commitments. The sophistication of environmental data feeds has improved, offering real-time updates and scenario analysis capabil

ESG ratings have emerged as the top factor influencing investment decisions globally in 2024. More than 80 percent of institutional investors considered ESG ratings as a key driver, followed closely by ESG controversy with 69 percent. On the other hand, 11 percent of investors noted influence from the EU Green Bond Standard. Sustainable Development Goals and ESG ETF Investments Climate action, represented by Goal 13 of the United Nations Sustainable Development Goals (SDG), has become the primary focus for ESG ETFs globally. As of 2024, assets worth 75.1 billion U.S. dollars were linked to this goal, with 280 out of 552 ESG ETFs targeting climate action. This emphasis on environmental concerns has aligned with the broader overall trend of investors prioritizing companies with strong ESG practices and ratings. Regional Variations in Sustainable Fund Demand While the demand for sustainable funds has remained relatively stable or has been perceived to increase across some regions, differences have been notable. In the United States, 14 percent of investors reported decreased demand for sustainable funds compared to non-sustainable options. However, Canada stands out, with over 95 percent of investors having indicated stable or increasing demand. This regional variation underscores the importance of understanding local market dynamics when developing sustainable investment strategies.

ESG Data Management Platforms Market by Offering (Hardware, Software, Services), Application (Environmental, Social, Governance, Supply Chain), Deployment Mode (Cloud, On-Premises, Hybrid), End-User Industry & Geography – Global Forecast 2025-2032

Through its ESG Corporate Rating, ISS ESG provides investors with a highly relevant, material and forward-looking ESG performance assessment. The rating methodology is based on an absolute best-in-class approach, evaluating company sustainability performance including ESG risks, opportunities and impact along the corporate value chain. The areas and indicators assessed are influenced by several factors such as international norms and conventions, social debate, regulatory changes and technological progress.

In order to analyze a company’s management of ESG issues within its core business, ISS ESG’s sector specialists select a set of about 100 criteria from a pool of over 800 indicators available in ISS ESG’s database. Whereas a standard set of around 30 universal ESG topics is assessed for all companies, the vast majority of indicators are sector-focused, helping to ensure that the most material issues have a significant influence on the overall rating result. The cumulative weighting of the sector-focused indicators accounts for at least 50 percent of the overall rating.

Furthermore, the social and environmental dimensions of the rating are weighted according to ISS’ industry classification system, which is based on the environmental and social impact of particular sectors.

The overall analysis is graded on a twelve-point scale from A+ (the company shows excellent performance) to D- (the company shows poor performance). “Prime” status is granted to those companies achieving best in class ESG performance, based on the sector exposure to environmental, social and governance impacts. The threshold for “Prime” status is based on absolute performance expectations which differ by industry.

The ESG Corporate Rating universe currently covers over 9,700 corporate issuers, including some 6,800 listed companies and 2,900 assigned corporate issuers across approximately 60 sectors. This coverage also includes more than 140 non-listed corporate bond issuers and additional small & mid-caps drawn from sectors with strong links to sustainability (e.g. renewable energies, recycling, and water treatment).

ISS ESG’s Corporate Ratings data is primarily sourced from publicly available information, including a company’s own disclosure and reporting, proxy statements, reputable news, governmental and international institutions, recognized international or local non-governmental organizations, and non-biased subscription databases such as the CDP.

During the rating process, considerable importance is attached to the dialogue with the company under evaluation. Every other year, ISS ESG provides companies with the opportunity to comment on and add to the provisional findings by submitting a draft rating report to the company for revision. After the period of consultation, the report is finalized, integrating the comments and additions that are deemed appropriate by the analyst in charge of the rating.

Data is used by a broad range of institutional investors, asset managers, asset owners, fund managers, banks, government institutions, universities and research firms.

ESG Data Marketplaces Market Outlook

According to our latest research, the global ESG Data Marketplaces market size reached USD 2.3 billion in 2024, reflecting increasing demand for high-quality environmental, social, and governance data across industries. The market is poised for robust expansion, with a projected CAGR of 18.7% from 2025 to 2033. By 2033, the ESG Data Marketplaces market size is forecasted to reach approximately USD 12.7 billion. This significant growth is driven by the escalating need for transparent ESG reporting, regulatory compliance, and the integration of sustainability metrics into investment and corporate decision-making processes.

A primary growth factor for the ESG Data Marketplaces market is the global surge in ESG investing. Institutional and retail investors are increasingly demanding reliable and granular ESG data to guide their investment strategies, as sustainability considerations become integral to portfolio management. The proliferation of sustainable finance regulations, such as the European Union’s Sustainable Finance Disclosure Regulation (SFDR) and the Task Force on Climate-related Financial Disclosures (TCFD), has compelled asset managers and corporations to seek comprehensive ESG datasets. As a result, ESG Data Marketplaces have become essential in aggregating, standardizing, and distributing this critical information, fueling their adoption across financial institutions and corporate entities alike.

Another key driver is the evolving corporate landscape, where organizations are under mounting pressure from stakeholders, including customers, employees, and regulators, to demonstrate their ESG commitments. Companies are now leveraging ESG Data Marketplaces to benchmark their performance, identify gaps, and report on sustainability initiatives with accuracy and transparency. The rise in voluntary and mandatory ESG disclosures is pushing corporates to invest in sophisticated data platforms that offer real-time analytics, customizable reporting, and integration with existing enterprise resource planning (ERP) systems. This trend is further amplified by the increasing use of artificial intelligence and machine learning in ESG analytics, which enhances the predictive power and actionable insights derived from ESG data.

Technological advancements and the growing adoption of cloud-based solutions are also accelerating the expansion of the ESG Data Marketplaces market. Cloud deployment offers scalability, flexibility, and cost-effectiveness, enabling users to access vast repositories of ESG data from any location. Additionally, the integration of APIs and data interoperability standards is improving data accessibility and usability, fostering a more collaborative ESG ecosystem. These technological innovations are not only reducing the barriers to entry for smaller organizations but are also supporting the development of niche ESG data services tailored to specific industries and regulatory requirements.

From a regional perspective, North America and Europe currently dominate the ESG Data Marketplaces market, owing to advanced regulatory frameworks, strong investor activism, and high adoption rates among financial institutions. However, the Asia Pacific region is exhibiting the fastest growth, driven by increasing sustainability initiatives, government mandates, and the rapid expansion of capital markets. Countries such as Japan, China, and Australia are witnessing a surge in ESG data demand, as local companies seek to align with global best practices and attract international investors. Meanwhile, emerging markets in Latin America and Middle East & Africa are gradually embracing ESG data solutions, albeit at a slower pace, as awareness and regulatory support continue to build.

Component Analysis

The ESG Data Marketplaces market is segmented by component into Platform and Services. Platforms represent the backbo