The Forrester Wave™: ESG Data And Analytics Providers, Q3 2024

ESG Data And Analytics Providers Vendor Product Comparisons 2024

Key features and pros and cons of top ESG Data And Analytics Providers products:

Bloomberg - Leaders

Pros:

Some of the largest, most granular, and up-to-date ESG and climate data coverage
Sophisticated analytics including physical climate risk data developed with Riskthinking.AI
Provides net-zero and temperature-alignment metrics, including implied temperature rise (ITR)
Captures company-reported nature and biodiversity data
Granularity and transparency of raw ESG data
Ability to create custom views
High level of customer engagement

Cons:

Navigating the terminal can be overwhelming for some users
Some customers wish for more detailed instructions to better understand how to source data and build connections

Clarity AI - Leaders

Pros:

Highly modular and scalable platform
AI pioneer with early adoption of NLP, ML classifiers, and GPT/LLMs
Customer-centric approach combining sustainability expertise with cutting-edge technology
Breadth, depth, granularity, and quality of ESG data
Uses AI and ML for data collection, extraction, mapping, QA and reliability checks
Customers can access methodologies and data sources for increased transparency
Lauded for technology, breadth and transparency of data and methodologies
Usability of web interface
Responsiveness and expertise of customer service
Continuously expands partner ecosystem (e.g., GIST Impact for biodiversity, AWS for ML and generative AI)

Cons:

Scope for greater customization of ESG data and analytics
Some reference customers seeking more specific investment or reporting capabilities

MSCI - Leaders

Pros:

Broadest asset class coverage
Leads on climate and net-zero solutions with over 900 metrics
Comprehensive carbon emissions data, fossil fuel exposure, climate VaR
ITR, low carbon transition score, forward-looking indicators, and green revenues
Leverages AI and tech partners including Google Cloud's Vertex AI platform
Multiyear contracts with analytics platform deeply embedded in client systems and workflows
Mines extensive data repositories to continually improve models, analytics, and indices

Cons:

Somewhat clunky analytics web app impacting client experience
Declined to participate in full Forrester Wave evaluation process

ESG Book - Strong Performers

Pros:

Comprehensive, high-quality ESG data suite
Automated web-scraping algorithms for data collection
Real-time, cloud-native SaaS ESG data management and corporate disclosures platform
Uses AI to automate technical data validation tests and boost accuracy
ESG data covers 450 ESG data points per company mapped against leading regulatory frameworks
ML-powered model for estimated scope 1, 2, and 3 emissions (all 15 categories) for over 45,000 companies
Temperature scoring and decarbonization analytics
Strategic partnerships with platforms including Arcesium, Bloomberg, Manaos, and SAP Fioneer

Cons:

Lacks more advanced physical and transition risk metrics
Declined to participate in full Forrester Wave evaluation process

ISS STOXX - Strong Performers

Pros:

Over three decades of ESG assessments
Deep sector, industry, and sustainability expertise
Excellent data coverage
Transparency and explainability of methodologies
Alignment with standards and frameworks
Extensive, good-quality data and rigorous methodologies
Solid client retention due to dedicated customer service
Broad partner ecosystem
Competitive pricing

Cons:

Needs to invest in AI-powered capabilities and automation
Web app needs an upgrade
Lags behind peers in using AI and ML to collect, validate, and standardize ESG data
Slow development of platforms and stale delivery methods reported by customers
Occasional time lag for data collection
Customer support can be inconsistent due to staff turnover

London Stock Exchange Group - Strong Performers

Pros:

Transparency of scoring methodologies
Ability to drill down into underlying data on LSEG Workspace
User experience described as better than peers
ESG Contributor Tool allows companies to verify and provide timely updates
Expanded carbon data and EU taxonomy alignment data and metrics
Partnered with ESG.AI and Sust Global for new analytics capabilities including climate risk analytics

Cons:

Data collection still primarily analyst-led
Limited reporting capabilities compared with competitors
Requires more granularity and sophistication for ESG and climate data
Still evolving after acquisitions of Beyond Ratings (2019) and Refinitiv Benchmarks and Indices (2021)

S&P Global - Strong Performers

Pros:

Strong position in financial intelligence
Extensive presence among global enterprises
Broad data coverage
Adopts double materiality approach (financial and impact materiality)
Corporate Sustainability Assessment captures up to 1,000 self-reported raw ESG data points per company
Enables customization of scoring analytics and models
Acquisitions of IHS Markit, The Climate Service, and TruCost strengthen sustainability solutions
Comprehensive data on transition and physical risks, carbon emissions and intensity
ESG data management as a service combining EDM software, Sustainable1 datasets, and connections to other vendors

Cons:

Still relies on survey-led ESG data collection
Integrity of some datasets can be an issue
Customer service not always a smooth experience
Declined to participate in full Forrester Wave evaluation process

EcoVadis - Contenders

Pros:

Questionnaires gather ESG and carbon data on over 130,000 mostly private companies
Valuable data difficult to access elsewhere
Integrates with multiple third-party supply chain and sustainability management software
Good disclosure capabilities
Ease of implementation and use
Customer support during onboarding

Cons:

Needs stronger innovation strategy
Should develop automation and AI technologies to identify patterns and enable corrective actions
Lacks AI-powered capabilities to automate sustainability data collection and measurement
Cannot continuously monitor changes in third parties' risk profiles
Lack of transparency around data inputs used to measure ESG performance reported by some customers

Moody's - Contenders

Pros:

Primarily focuses on credit ratings, research, and risk analysis
Acquisition of RMS (2021) allowed scaling of insurance data and analytics
Development of integrated risk modeling capabilities
Added carbon footprint, net-zero, and temperature alignment data
Range of web-based workflow solutions to integrate ESG data and analytics

Cons:

Does not facilitate ingestion, integration, and management of ESG data from multiple sources
Lacks level of data granularity required for customization
Does not always allow easy integration into client applications
Lacks advanced capabilities for verifying, interrogating, and drilling down into data
Needs to support clients with more framework-aligned solutions
Better sustainability reporting capabilities needed
Did not provide reference customers for this evaluation

RepRisk - Contenders

Pros:

Used by some of the largest banks and investment managers worldwide
Focuses on ESG risk data and analytics delivered directly into client processes and systems
Outside-in perspective using AI/ML and analyst research
Analyzes over 100,000 public sources covering more than 250,000 companies
Intentionally excludes company self-disclosures to avoid masking risk
Metrics updated daily with consistent, rules-based methodology going back to 2007
Time series data available for backtesting and analysis
Assesses ESG risk exposure across 102 ESG risk factors mapped to international frameworks
Partnered with Integrated Biodiversity Assessment Tool Alliance for biodiversity risk insights

Cons:

Data collection and QA checks still performed by analysts
Customers cannot verify or query the data
Doesn't provide carbon footprint and climate data
Declined to participate in full Forrester Wave evaluation process

FactSet - Challengers

Pros:

Marketplace lets customers browse and access over 300 third-party ESG data products
Access to vendors including Clarity AI, ISS STOXX, Morningstar, MSCI, and RepRisk
Delivers proprietary and third-party data via data feeds, APIs, and cloud access
Data can be integrated into client applications and workflows
Acquisition of Truvalue Labs (2020) provides ESG event data going back to 2016 for over 260,000 companies
Started offering SFDR PAI data

Cons:

Primarily an aggregator of ESG data
Proprietary data coverage very limited compared to peers
Data collection and analysis still primarily overseen by analysts
Customers cannot trace data back to the source
Customers must separately purchase data solutions from third-party providers to access external data
Declined to participate in full Forrester Wave evaluation process

Morningstar - Challengers

Pros:

Full suite of traditional and ESG market data and indices
ESG ratings across multiple asset classes through Sustainalytics acquisition (2020)
Acquired property-level climate risk data provider Aquantix (2022)
Partnered with physical climate risk analytics provider XDI
ESG ratings continue to be widely used
Offers API services to streamline data integration

Cons:

ESG risk modeling methodology lacks transparency and explainability
Customers cannot disaggregate and verify data
Cannot use raw ESG data to customize analytics models
Offers fewer options for sophisticated carbon, physical and transition risk, and sustainable impact metrics than peers
Does not result in strongly differentiated vision or innovation strategy
Declined to participate in full Forrester Wave evaluation process

FAQs

Q: Which vendors are Leaders in 2024?

A: Bloomberg, Clarity AI, MSCI

Q: What does "Leader" mean in Forrester Wave terms?

A: Leaders in the Forrester Wave are vendors that offer the strongest current offerings and have the most robust strategies in the market. They demonstrate excellence across evaluation criteria including breadth and depth of ESG and climate data, use of emerging technologies and AI, data quality and transparency, integration capabilities, alignment with regulatory standards and frameworks, and have strong market presence with proven customer satisfaction.

Q: How do I interpret a Forrester Wave?

A: https://www.forrester.com/policies/forrester-wave-methodology/

Report:

Top Vendor Products for ESG Data And Analytics Providers in 2024

ESG Data And Analytics Providers Vendor Product Comparisons 2024

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FAQs

Q: Which vendors are Leaders in 2024?

Q: What does "Leader" mean in Forrester Wave terms?

Q: How do I interpret a Forrester Wave?

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