The ESG Data Market Will Be Worth $1 Billion Next Year

March 10, 2020 | ESG and Sustainability, News
https://dailyalts.com/wp-content/uploads/2020/03/55e0d4434e52ab14ea898579ce203e7c1d22dfe05b52794f7d297ad4_640.jpg

A new report from Opimas states that the value of ESG data could top $1 billion by next year. The firm’s newest report  ESG Data Market: No Stopping Its Rise Now, says that the market topped $617 million in 2019. The research group projects annual growth of 20%, and 35% growth for ESG indexes.

The new Opimas report states that the bulk of the buying will come from Europe. Roughly 60% of demand will come from European firms, primarily due to regulations. Asset managers must incorporate ESG considerations into their fiduciary duties by the end of next year.

North American firms will comprise 33% of demand. Asian companies will represent the final 7% of demand.

Opimas on ESG Demand

The report has broken the provider firms into five different categories.

  • Generalists like Bloomberg, Refinitiv or MSCI;
  • ESG research firms or specialists;
  • Stock exchanges;
  • Asset managers that have experience in ESG data, ratings and analytics; and,
  • Credit rating firms like Moody’s

Finally, Opimas managing director and report co-author, Axel Pierron said that incomparable data would make it harder to succeed for managers.

“The issue ahead is that the industry is likely to see a massive reallocation of portfolios toward companies that have better ESG ratings solely based on incomparable data. Investors will end up with stocks that are overpriced due to — at best — incomplete or outdated data,” Pierron said in a statement.

Recent: ESG: Is Biodiversity is the New Climate Change?

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”
Shape

Latest Alternative Investment News

Alternative Investments: Activists Will Get Busy Soon, Says Tim Melvin

As companies become more undervalued as the economy slows because of shutdown orders across the United States, I expect that the pace of activist activity to increase. We should see…

https://dailyalts.com/wp-content/uploads/2020/04/54e5d0424b54b10ff3d8997cc3213f771737c3e456597441702a7cd297_640.jpg
Private Equity: Active Triage Happening at KKR and Other Funds
April 2, 2020     News, Private Equity

KKR & Co (NYSE: KKR) has shelved a plan to sell Singapore-based Goodpack, a Singapore based shipping containers, and logistics services.  They had bids for the company that was said…

https://dailyalts.com/wp-content/uploads/2020/04/key-visual-kyash.jpg
FinTech: Kyash Closes $45M Series C Funding
April 2, 2020     FinTech, News

Kyash, a Japanese fintech startup aspiring to be a leading challenger bank, gained $45 million in a Series C funding. The round was co-led by Greenspring Associates and Goodwater Capital,…

https://dailyalts.com/wp-content/uploads/2020/04/dollar-1362244_640-mmfs.jpg
Liquid Alternatives: Investors Shovelled $677B Into Money Market Funds In Scramble to Safety
April 2, 2020     Liquid Alternatives, News

Investors set up a record-breaking first quarter this year for inflows into U.S. money market funds. These funds gained from the massive risk-off sentiment that prevailed as investors realized the…

Scroll to Top