A recent survey conducted by Bloomberg and Adox Research, involving over 100 portfolio managers, climate risk executives, and data management executives, reveals a strong inclination among executives to boost their investment in ESG data. The survey, conducted in New York on August 23, 2023, showcases the increasing demand for ESG data and sheds light on firms’ strategies for ESG data spending, acquisition, and management. Almost all executives (92%) are gearing up to elevate their ESG expenditure by a minimum of 10%, with 18% aiming to amplify their spending by 50% or even more. The key areas targeted for these investments are ESG benchmarks and indices (29%), company-reported data (23%), ESG scores (20%), and sustainable debt (19%). When it comes to selecting ESG data providers, the primary criterion is data quality, closely followed by coverage breadth.
The survey highlights a marked divergence in firms’ perspectives regarding their ESG capabilities. While a majority (64%) feel they are outperforming their competition, a significant portion (nearly 30%) admit to feeling somewhat or considerably lagging behind. Nonetheless, one point remains undisputed: an overwhelming 99% of executives acknowledge the high value their organizations place on ESG data. They highlight its importance in staying on par with peers (45%), gaining a competitive edge (44%), and ensuring regulatory compliance (10%).
Even as companies are actively seeking to acquire more ESG data, they are grappling with the challenge of efficiently managing it. The survey indicates that over 70% of firms are adopting an ad hoc or decentralized approach to obtain and manage their ESG data. In contrast, only about one-third of respondents (29%) are adopting a comprehensive, organization-wide approach for evaluating, implementing, and streamlining their ESG data.
Given this fragmented landscape, the most formidable hurdles in ESG data management include handling the continuous influx of evolving ESG data content (55%), effectively managing multiple data feeds from various ESG vendors (50%), and aligning ESG content with existing entity data (48%). In terms of technical delivery options for ESG data, cloud technology emerges as the overwhelming preference, with 85% of respondents favoring it. Rest API (7%), SFTP/Parquet (6%), and SFTP/Request/Reply (3%) follow in preference.
Bloomberg plays a significant role in providing access to transparent, consistent, and comparable data for over 15,000 global companies and 474,000 active securities. The range of Bloomberg’s ESG data, research, and analytics spans regulatory compliance, carbon emissions, sustainable debt, scores, indices, climate risk, and more.
