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Bloomberg Study Shows ESG Data Demand Up, but Data Management Challenges Persist

The demand for ESG data is on the rise, according to a new Bloomberg and Adox Research survey of more than 100 portfolio managers, climate risk executives, and data management executives. The survey reveals firms’ priorities for ESG data spend as well as approaches to ESG data acquisition and management. Nearly all executives (92%) plan to increase their ESG spending by at least 10%, with 18% planning to increase their spend by 50% or more. The top three areas in which firms are prioritizing this spend are ESG benchmarks and indices (29%), company-reported data (23%), ESG scores (20%), and sustainable debt (19%). When asked which criteria were most important for selecting an ESG data provider, data quality ranked first, followed by breadth of coverage. While firms seek to obtain more ESG data, they are also contending with how to best manage it. Over 70% of firms report taking an ad hoc or decentralized approach to acquiring and managing their ESG data. Only about a third of respondents (29%) take a holistic firmwide approach for evaluating, implementing, and rationalizing their ESG data. Given this fragmentation, the most challenging aspects of ESG data management are handling constantly evolving and new ESG data content (55%), managing multiple ESG vendor data feeds (50%), and aligning ESG content to existing entity data (48%). When it comes to technical delivery options for ESG data, cloud is the clear preference for 85% of respondents, followed by Rest API (7%), SFTP/Parquet (6%), and SFTP/Request/Reply (3%).

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