Organizations enhance collaboration and monitoring efforts for sustainable transformation.
As more and more organizations are advancing on their sustainable transformation journey, their efforts are becoming increasingly complex. Sustainability considerations are becoming more integrated in different functions, and ESG (Environmental & Social Governance) performance must be monitored and reported more continuously. IT has become a critical enabler of these transformations as ESG performance monitoring and management process has evolved from an entirely manual exercise to a much more data-intensive process, necessitating the integration of large-scale data models and management platforms.
The ESG disclosure landscape is rapidly evolving. Consolidation in the voluntary reporting space is accompanied by an increase in new and pending mandatory disclosure regulations globally. The challenges this poses has prompted companies to seek a more automated and streamlined way to capture, collect, store and report ESG data.
The realities of climate change are increasingly hitting home, regulations are rising, and environmental, social, and governance (ESG) assets are growing upward of 15 percent annually (Bloomberg, 2022).1 With all this happening, organizations are looking to quickly advance their own sustainability progress and opportunities but recording and reporting that progress remains challenging for many. Measuring and monitoring sustainable transformation at scale requires data-driven solutions.
Sustainability has become a strategic and operational imperative for many organizations. Investment, sustainability, and risk professionals increasingly integrate environmental, social, and governance (ESG) factors into investment analysis and decisions as well as third-party risk management - often to meet regulatory requirements.
Many are turning to ESG data and analytics providers to help with those efforts, resulting in considerable growth and consolidation of this market in the past 24 to 36 months. Solutions are becoming more mature and sophisticated - though key challenges remain.
What Do ESG Data And Analytics Providers Offer?
ESG data and analytics providers help organizations assess the corporate sustainability performance of companies, assets, or funds - extending to supply chains. In The ESG Data And Analytics Providers Landscape, Q1 2024, we define ESG data and analytics providers as offering:
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