PUBLISHER: The Business Research Company | PRODUCT CODE: 1619564
PUBLISHER: The Business Research Company | PRODUCT CODE: 1619564
Environmental, social, and governance (ESG) investment analytics involve assessing and analyzing the ESG factors of companies and investments. This process helps investors evaluate the sustainability and ethical impact of their investments, guiding them toward socially responsible and sustainable investment practices. ESG analytics also assist companies in meeting the increasing demand for transparency and accountability from investors, regulators, and other stakeholders.
The primary types of ESG investment analytics are addressing ESG expectations and preparing ESG reports. Addressing ESG expectations involves implementing actions and strategies to meet sustainability, ethical practices, and corporate governance standards. The market serves various organization sizes, including large enterprises and small and medium enterprises (SMEs), with applications in sectors such as the financial industry and consumer and retail.
The ESG investment analytics market research report is one of a series of new reports from The Business Research Company that provides ESG investment analytics market statistics, including the ESG investment analytics industry global market size, regional shares, competitors with ESG investment analytics market share, detailed ESG investment analytics market segments, market trends, and opportunities, and any further data you may need to thrive in the ESG investment analytics industry. These ESG investment analytics market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The ESG investment analytics market size has grown rapidly in recent years. It will grow from $1.45 billion in 2023 to $1.7 billion in 2024 at a compound annual growth rate (CAGR) of 17.8%. The growth during the historic period can be attributed to reductions in economic risks, improvements in risk management, increased demand for tools and solutions, advancements in supply chain management, and enhanced company reputation management.
The ESG investment analytics market size is expected to see rapid growth in the next few years. It will grow to $3.3 billion in 2028 at a compound annual growth rate (CAGR) of 18%. The projected growth during the forecast period can be attributed to increased operational efficiency, a rising emphasis on corporate social responsibility, the growing importance of diversity and inclusion metrics, shifting consumer preferences, and improvements in data quality. Key trends expected to shape this period include the adoption of blockchain technology, the use of ESG ratings, the development of real-time monitoring tools, advanced visualization tools, and the integration of Internet of Things (IoT) sensors.
The growing demand for ESG (Environmental, Social, and Governance) information from investors is expected to drive the expansion of the ESG investment analytics market. ESG information encompasses the frameworks and policies that detail a company's practices and performance on various sustainability and ethical issues. Companies are facing increasing pressure to disclose specific ESG data, such as their environmental impact, social initiatives, and governance practices. This transparency helps investors make informed decisions and holds companies accountable for their actions. ESG investment analytics integrate these factors into their assessments, helping investors understand how companies manage risks and opportunities related to sustainability and ethical practices. For example, a May 2022 ESG Global Study by Capital Group, a US-based financial services firm, revealed that 89% of investors used ESG information in 2022, up from 84% in 2021. Additionally, 31% of European investors view ESG information as a central investment factor, compared to 26% of global investors. Therefore, the increasing demand for ESG information is expected to drive the growth of the ESG investment analytics market.
Leading companies in the ESG investment analytics market are increasingly incorporating artificial intelligence (AI) to improve data accuracy, automate ESG metric assessments, and provide deeper insights into corporate behavior and sustainability risks. AI enhances ESG investment analytics by processing and analyzing large volumes of unstructured data, such as news articles, reports, and social media, to identify ESG-related trends and risks. This provides investors with valuable insights into the sustainability and ethical performance of companies. For instance, in November 2023, Nasdaq, a US-based financial services company, introduced Nasdaq Sustainable Lens. This AI-powered SaaS platform streamlines and analyzes ESG data management for the financial sector, offering tools for summarizing, benchmarking, and monitoring trends across over 9,000 companies' sustainability disclosures. It simplifies ESG reporting through advanced AI capabilities, reducing the need for manual research.
In September 2022, ACA Group, a US-based consulting and services firm, acquired Ethos ESG for an undisclosed amount. This acquisition aims to enhance ACA's ESG Advisory practice by integrating advanced analytics and transparent ESG data, allowing clients to analyze investments and automate ESG reporting. Ethos ESG specializes in ESG data and analytics.
Major companies operating in the environmental, social and governance (ESG) investment analytics market are Deloitte Touche Tohmatsu Limited, PricewaterhouseCoopers International Limited, Ernst & Young Global Limited, KPMG International Limited, RSM International Ltd., Covestro AG, S&P Global Inc., LSEG Data & Analytics, Wolters Kluwer N.V., MSCI Inc., Conservice ESG, Institutional Shareholder Services Inc., Sustainalytics B.V., Intelex Technologies Inc., RepRisk AG, Vigeo Eiris, Persefoni AI Inc., Measurabl Inc., IdealRatings Inc., Arabesque S-Ray GmbH, Truvalue Labs Inc., Verisk Maplecroft, ESG Enterprise
Asia-Pacific was the largest region in the ESG investment analytics market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the environmental, social and governance (ESG) investment analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the environmental, social and governance (ESG) investment analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The ESG investment analytics market includes revenues earned by entities by providing services such as ESG data collection and reporting, ESG performance benchmarking and scoring, and ESG risk assessment and portfolio analysis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Environmental, Social And Governance (ESG) Investment Analytics Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on environmental, social and governance (ESG) investment analytics market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for environmental, social and governance (ESG) investment analytics ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The environmental, social and governance (ESG) investment analytics market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.