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The Ultimate Guide to ESG Data 2021

Learn about esg data analytics, sources, and collection.

To predict the long-term performance and growth of a company investors have begun to consider its environmental, social, and governmental strategies. The performance of a company is becoming increasingly dependent on its non-financial operations. Consequently, the demand for ESG data has increased among data providers, potential investors, and companies, and more people are looking for ESG data sourcing solutions.

To make an informed decision about the correct data it is important to gain an insight into what ESG data is, how it can be sourced, and how it can be used. Our Ultimate Guideto ESG Data will provide you with all the information you need so that you are empowered to purchase and make use of the right ESG data for you.


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What does ESG stand for?

ESG criteria are the environmental criteria, social criteria, and governance criteria used to assess overall company performance. The ESG criteria look beyond the financial success of a company. Instead, the criteria assess how sustainably and ethically a business is being run. Analysis of the non-financial operations of a company determines whether an organization will be successful in the long-term.

How is the Environmental criteria within ESG measured?

Within ESG, the environmental criteria are measured against how well a company upholds regulations that protect the environment. Environmental criteria consider whether a particular company poses any potential threat to the environment and whether the company in question is equipped in a way that allows it to deal with any potential environmental risks.

How is the Social criteria within ESG measured?

Within ESG, the social criteria are based on how a company treats its employees, customers, vendors, and the attention it pays to the local and wider communities it is based in.

How is the Governance criteria within ESG measured?

Within ESG, governance criteria are measured according to the distribution of decision-making processes across company stakeholders. The governance criteria relate to company accounting methods, tax audits, its shareholder rights, the salaries of its top-level executives, as well as the controls it places on these internal policies. Government regulations set the foundation for these criteria however, it is ESG providers who evaluate a company’s adherence to the regulations set by a particular government.

Overall, how is ESG measured and why is this so important?

ESG data providers measure a company against their checklist, using this to calculate an overall ESG rating for the company. The ESG score of a company and its adherence to environmental, social, and governmental criteria is important as it assesses the potential growth of a company and the company’s ability to do business in the long-run. The ESG score can inform investors, allowing them to decide whether they wish to put money into a particular company.

Why are ESG scores important for companies?

The ESG score of a company is often integral to its ability to continue operating and can determine whether a company attracts investors or not.

How can a good ESG score positively impact a company?

A high ESG score means companies are in a good position to anticipate the potential risks within business operations, with access to ESG datasets allowing companies to recognize the operational changes which could be made in order to support the long-term sustainability of a company.

How can a poor ESG rating negatively impact a company?

A poor ESG company rating can spell disaster for even the most financially successful of organizations. The impact of a poor score often damages a company’s brand, reputation and stock price.

Negative Brand Impact
A poor ESG rating can act in opposition to a company’s brand. A poor ESG rating can contradict a company’s marketing efforts, deter potential customers and investors while also causing them to lose existing clients. To counteract this, many companies are now publicly displaying their virtues in an effort to bolster their ESG score. For example, the investment bank Goldman Sachs recently stated that they will not take any company public unless it has at least one diverse board member. Efforts like this show how companies can be encouraged to improve their ESG score to create a positive, consumer-friendly brand.

Reputation Damage
Similar to how a poor ESG rating can impact branding and deter potential investors from putting money into an organization, the global reputation of a company is also often impacted by its ESG score. Thanks to social media and the internet, the world is more connected than ever before. Any news, especially negative news, spreads fast. For example, in 2015 ESG data companies raised several concerns regarding the car manufacturer Volkswagen’s ESG ratings. ESG data alleged issues with its governance structure and several months later, the Dieselgate scandal proved these allegations right and consequently left a permanent scar on Volkswagen’s public reputation.

Stock Price Decrease
A negative brand image and a poor company reputation have tended to be signals for a decrease in the stock price of a company. However, more investors are now taking into consideration the straight ESG score of a company when deciding how to invest. In line with current progressive culture, younger investors are more heavily influenced by a company’s ESG score, and these investors are much more likely to hold a company responsible for ESG violations. It is already possible for these younger investors to have an impact on companies alleged to have violated ESG standards. If current trends continue, these investors will gain even more influence and the ESG score of a company may become even more of a deciding factor for the value of a company’s stock.

Case Study: Facebook

If we use Facebook as an example, the impact a poor ESG score is apparent. In mid 2019, the social media giant was repeatedly accused of collecting and sharing user information without having acquired proper consent. As a result, Facebook was removed from a list of socially responsible companies from S&P’s index. This affected not only the company’s reputation, but also its stock price, and it may be a factor as to why the site is no longer growing like it once did.
As Facebook’s example shows, no company is above the power of the ESG criteria. Ensuring a good ESG score is thus vital for any business that wants to attract investments and enhance its growth. The demand for ESG data has continued to increase as analysis of ESG datasets reveal the need for greater gender equality, improved working conditions and better solutions for the prevention of climate change if a greater sustainability is to be achieved and if investors wish to carry out responsible investment and put support companies which are operating within a framework which considers human rights and diversity. These regulations bring more prominence to ESG criteria, cause investors to consider the ESG scores of a company more closely and consequently, enhance the influence of ESG datasets and the ESG providers. This in turn gives more power to ESG intelligence in general, meaning that a company’s historical ESG performance is more important in the public eye and to its future development.

What is ESG Data?

ESG data provides information on the environmental, social, and governance factors of a company and is consequently used to measure how ethically viable and sustainable company operations are. This information is often collected and given by data providers. Data providers measure companies against environmental, social, and governmental and these factors can be used to determine how responsible investing in a particular company is. This known as ‘responsible investing’.

What is Responsible Investing (RI)?

Responsible investment occurs within an ethical and environmentally sustainable framework. There are different forms of responsible investment, and some of these include:

1) Ethical Investment
ESG data can determine whether a company is engaging in practices which the investor deems unethical. These unethical practices could include business transactions involving tobacco, alcohol, pornography, trade with a particular company, or even involvement with certain weapons. Controversial weapon research data can help create datasets providing further insight into a companies involvement with weapons. ESG data and the ethical practices of a company can help investors make important decisions about whether they wish to support a particular company or not.

2) Socially Responsible Investment (SRI)
Socially Responsible Investment involves investments in companies that have previously supported communities around them. Socially Responsible Investment funds companies seeking to invest in community services and boost the overall socio-economic standpoint of a community.
3) Sustainable Investment
Sustainable investment supports companies that aren’t involved in practices that are socially or environmentally detrimental in the long-run. Rather than companies that rely heavily on fossil fuels, sustainable investment involves putting money into companies that seek to achieve their goals through environmentally viable means and protect human rights.
By investing in ESG data, applying responsible investment strategies, and using effective data analysis, the risk of trusting companies engaging in unsustainable practices which will limit future financial growth is minimized.


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What are the attributes of ESG Data?

For a general understanding of data attributes, ESG datasets can be broken down into the category’s three root categories:

Environmental Attributes

The environmental attributes of ESG databases are points that measure a company’s impact on the environment. This includes its waste disposal, sustainability of resources, and energy sources. Environmental attributes measure how the practices of a particular company impact the environment, while also raising questions about how a company intends to preserve the natural world. Since the Paris Agreement of 2020 set out the plan to reduce the 1990 greenhouse gas emission levels by at least 55% by 2030 across the EU, there has been an increased emphasis on the sustainability of individual companies and how they intend to contribute to cutting these greenhouse emissions. In line with the plan to cut greenhouse emissions, the importance of a company’s ESG environmental attribute score has increased. Environmental attributes consider the sustainability of a company’s resources and energy sources, while also considering how a company contributes to pollution and waste. These considerations can be be carried out by asking the following example questions:

Does a company use sustainable resources and energy sources?
The amount of greenhouse gases, like carbon dioxide and methane, that a company produces can be tracked and recorded. The worse the greenhouse pollution, the lower the ESG score for this attribute. However, if companies move away from the use of fossil fuels, adopt a more eco-friendly approach and increase the percentage of power generated through the use of renewable energy, a company’s ESG score can improve.

Does a company produce greenhouse gases?
The amount of greenhouse gases, like carbon dioxide and methane, that a company produces can be tracked and recorded. The more greenhouse pollution created by a company, the lower its ESG score.

Carbon Reserves
Companies that are heavily invested in exploiting carbon-based resources like coal, oil, and gas tend to be penalized in ESG scoring as it is difficult to sustainably acquire and process these resources.

How much water does a company use and how is it sourced?
The amount of water used and polluted by a company can also affect its ESG score. Nestle’s ethics came in question when they were found practicing unethical ways of affecting water sources of African villages to peddle a particular baby formula that was discouraging breastfeeding.

Renewable Energy Usage
Positive steps taken by companies to become more eco friendly, like purchasing a percentage of their power from renewable energy sources, can have a positive impact on the company’s ESG score.

What are the Social Attributes of a company?

The social attributes side of ESG data gives insights into data surrounding human capital, labor standards, privacy, data security, and stakeholder opposition of the company. The social attributes of ESG data considers the business relationships of a company, providing an insight into data concerning company employees, customers and the wider communities a company is based in. The social attributes include the categories such as a company’s diversity and consider how a company takes human rights into consideration.

Company Diversity
The diversity within a company impacts its ESG data score and recent studies have suggested that there is a strong connection between the level of diversity and financial prosperity within a company. Wider diversity within a company can help drive innovation and is consequently considered a primary indicator of a company’s overall health and ESG data score. Having a non-discriminatory and racially diverse organization is often a goal of a company. As companies become more global, ensuring work opportunities are available for a diverse range of individuals is becoming increasingly important. Equally, it is no secret that more companies are seeking to achieve a gender balance across their organizations. The ratio of male to female, and the inclusion of non-binary genders, has been an important factor in many office’s decision making processes and companies often strive for equitable hiring practices to manage this.

However, across a number of sectors, there is a staggering lack of diversity across its employees. This is especially the case when considering those in high level positions. A study found that globally, in 2020 only 9% of CEOs were female. This points to the fact that across many companies, levels of diversity may not be up to standard. This lack of diversity negatively impacts a company’s ESG score, data which can be used to inform investment decisions.

Human Rights
As well as company diversity, the social attributes of a company’s ESG dataset is determined by an organization’s consideration for human rights. One way a company’s social attributes can be assessed is through the consideration of an organization’s Employee Turnover Rate. How long employees stay with a company and their overall satisfaction rate can impact a company’s ESG score. These company datasets may offer an insight into how the company treats its employees. However, the human rights element of a company doesn’t only consider the company’s internal business strategies and relations but also assesses how a company treats the communities in which it is based and whether a company positively impacts the wider society.

What are the Governance Attributes of ESG?

The governance attributes side of ESG data considers a company’s actions surrounding the distribution of the decision-making processes, taking into account corruption, business ethics, a company’s board and management structure, its employee relationships including employee payments and its compensation strategies:

Structure of Management
The equity valuation of a company looks at the internal set of protocols of how the management across a company is structured. The Structure of Management considers the balance of power between a company’s CEOs and its Board of Directors.

Improving Employee Relationships
In establishing a fair recruiting process that incorporates diversity, establishing values and policies that create a safe workplace is crucial. The Fortune 100 best companies to work for has become a coveted list for employers as this drives the hiring of valuable talent and has an impact on the growth of the company as a result. This also considers the ability of workers to have representation or a union.

Compensation of Top Executives
In recent times the remuneration and bonus packages of board members and top management employees have become a point of scrutiny by shareholders as well as equity investors.

Fair Compensation of Employees
Employers are also liable to pay the employees a considerable amount pertaining to their designation. All major companies practice minimum wage standards. Actively working to close the wage disparity between genders is another important benchmark.

Pay equity audits are available for auditing and they are in many cases made available to the public forums, which open up the ethics of the company to be questioned by investors.

Who is using ESG Data?

Investors and Hedgefunds use ESG data as a non-financial form of data to inform their decisions surrounding which companies to invest in. More investors are looking to ensure they are engaging in Responsible Investment (RI). ESG datasets highlight which companies are safe to invest in, while also revealing which companies are carrying out high-risk business operations and transactions.


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With ESG data, investors can assess the sustainability and ethical standards of a company, and even compare its performance to that of its peers. This helps investors to make more informed investment decisions.

Corporates themselves can also make use of company ESG scores data to influence their own business operations.

Studies suggest that taking note of ESG data analytics is also in the best interest of company leadership teams. The report suggested that an inclusive and sustainable operating model can actually increase the performance and revenue of a company.

Thus, anyone interested in staying up to date in the business world should know about and be using ESG data to inform their decisions.

How can I use ESG Data?

ESG data can be used to evaluate companies’ business practices and influence investment decisions. Not all companies will score highly across each data attribute. However, access to ESG datasets allows companies to carry out data analysis and provides investors with the power to make decisions about what is important to them, giving them the information they need to help them avoid socially or financially risky investments. This can help investors to avoid socially or financially risky investments and can help companies to improve their public image.

In the case of investors, ESG intelligence can feed algorithms that analyze companies and predict the stock market. This can then inform investment decisions. ESG data is widely used when investing in public equity assets, however, other asset classes are now also beginning to incorporate it.

With regard to companies, ESG data is important because the right understanding and use of it can make or break a company’s image. Recall the case of Facebook mentioned above.The company was removed from an S&P index tracking socially responsible companies, which dented its public image, deterred investors and subsequently had a negative impact on its stock prices.

Understanding a company via ESG

ESG scores can help investors to recognize how environmentally viable, humanitarian and ethical a company is.
The environmental impact of a company includes a lot of factors. The energy usage, conservation or destruction of natural resources, humane treatment of animals, amount of waste generation and contribution to pollution all guide the environmental criteria.

It can also include the chances of the company facing any environmental risks, and in such an event, how the company will be managing such a risk. Such scenarios may include the disposal of toxic waste, compliance levels according to government regulations, if the company owns any contaminated land or if there are hazardous emissions from the factories.

The social impact of a company includes the professional relationships between the company and its stakeholders. Does the company treat the vendors in accordance with their company values? Do they partake in any corporate social responsibilities by supporting the communities in which they are based through donations to charitable organizations or through volunteer work? Does the company value the morale, safety, and health of the employees? Does the company work in the interest of the stakeholders?

With respect to the governance of the company, investors want to understand if the company operates in ethical ways, if they use correct accounting policies, and if the stockholders are privy to important decisions related to the company.

They also want the board members to be free from any situations that can create a conflict of interest. Whether the company employs illegal practices and uses bribing or another sort of political contributions to do unlawful favors to third party entities. As part of determining the sustainable and ethical governance attributes of a company, ESG datasets can also further allow investors to assess the governance operations of a company. ESG datasets, for example on a comapny’s involvement with controversial weapons, can provide information about direct or indirect company connection to illegal or controversial biological, chemical, incendiary, white phosphorus and Nuclear weapons through a traffic light category system.

It is unlikely that a company will pass every criterion in these three categories. Here, ESG ratings allow investors to decide what is important for them. Every investment firm sets priorities when they decide to follow the ESG criteria.

What are the global implications of ESG data?

ESG data and the importance of the non-financial attributes of a company’s practice is something investors have become increasingly aware of. Rather than simply focusing on immediate revenue, investors are becoming increasingly concerned with how the environmental, social and governance elements of a company impact an organization’s sustainability and determine whether it is a company they wish to invest in.

Many leaders are taking positive steps to ensure their work meets ESG guidelines and they have a long-lasting sustainability program. It has reached a point that soon market leaders will be held responsible for the firm’s ESG performance by the concerned shareholders. And with the Facebook backlash being only the tip of the iceberg, we have already started seeing the investors jump into action.

Cyrus Taraporevala, president and CEO of State Street Global Advisors said “ESG issues have become much more important for us as long-term investors. We seek to analyze material issues such as climate risk, board quality, or cybersecurity in terms of how they impact financial value in a positive or a negative way. That’s the integrative approach we are increasingly taking for all of our investments.”

Here are the statistics that back up the data that investment firms are prioritizing ESG. In 2006, sixty-three investment firms who own hold around 7 billion dollars in assets, willingly signed a pledge with the Principle for Responsible PRI (Which is a movement backed by the United Nations) to hold ESG issues at high regards in terms with the decisions made on an investment. In 2018 the number closed to 1715 firms.

The data suggests more than half of the world’s asset owners have implemented ESG evaluations in their firm operation guidelines.

Although, there are still business owners who do not know about ESG or choose to ignore it as a passing social motion wave. A study conducted in Merrill Lynch disclosed that half of the United States executives had no idea that firms which employ sustainable strategy guidelines hold around 25 percent shares in the company. The highest number that came up in the study was 5 percent.

It’s still a new thing…

The general impression amongst global business leaders is that ESG is not mainstream enough to be affecting the judgment of investors.

So, even though the companies recognize their role in factors pertaining to key global issues like gender inequality at the workplace, call for fair governance and a fair wage, or global warming, many of them also believe that a sustainability agenda goes against the profits that the shareholders are concerned about.

Therefore, practicing along with the ESG guidelines, and tweeting socially acceptable literature are very different things for these organizations.

The good news is that this perception is quickly becoming outdated. According to recent interviews conducted with the biggest firms across the world (State Street, BlackRock, the Japan Government pension fund, Sweden, California Public Retirement System, etc.), the general consensus is that the leaders place a high importance on ESG. The ESG guidelines help investors select outliers in the industry and choose companies that value the same things as them.

Take the example of Trillium Asset Management, a Boston-based firm with a net asset of $2.5 billion. The firm employs a chosen selection of ESG factors that position the company for long term performance.

The company avoids investing in any other companies that have known association with coal mining or have more than 5% of their revenue coming in from weapons selling or nuclear power.

They also do not invest in companies that employ unethical workplace practices such as discrimination in the workplace, animal rights violations, and imbalanced governance structures.

How to find the best ESG data providers?

When determining the top market ESG data, there are a few things to consider. We see most investors stressing comparability and consistency in the data that is available in the market to construct an effective set of data based on which to score companies.


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The backbone of ESG analysis is quality data, and there is no better place to get this valuable information than from top market providers.

However, a combination of a lack of standardization and a large amount of red tape and protocols makes finding the top providers difficult.

The providers’ job isn’t any easier. To begin with, ESG sustainability reporting is not yet mandatory in all countries. Therefore, most companies are free to decide which ESG factors are considered where it impacts the performance of the business. As a result, they can disclose selective data to the public, making the data biased.

This lack of consistent and reliable information is a challenge that governments, investors, companies, and the judging public have to face.
ESG data providers are crucial in bridging the gap at this stage. They collect and evaluate information related to a company’s ESG practice and then rate these companies on various relevant factors.

The company rating methodology seems to have awakened the interest and faith in ESG investing, as many see the ratings to be an option to conducting their own ESG research - luckily for us, there are literally hundreds of vendors out there. Many of them are ESG exclusive. The exclusive ESG data providers have much more in common when reporting on ESG factors as they tend to operate on a similar rating methodology.

Along with that, there is an issue in relying only on any single provider due to the limitations. This is something you should keep in mind while making investment decisions.

What are the sources of ESG data?

ESG data comes from sources related to monitoring companies which includes annual company reports, government reports, news reports, and social media posts. The majority of ESG data comes from self-reported data however, can also be sourced from third-parties and real-time ESG data signals.

Self-Reported ESG Data:

  • Company Websites
  • Annual, ESG, and Proxy Reports

Third Party ESG Statistics:

  • NGO/Government Reports,
  • Government Websites

Real-Time ESG Signals:

  • News
  • Social Media
  • Company Reviews

How is ESG rating data collected?

Every ESG data provider has its own process of researching, collecting, handling, and rating methods. This is why the rating for one company can vary from one ESG provider to another.

Whether it’s by scraping company websites or social media, data providers transform and aggregate this data collected from numerous sources into clean digestible records of information, therefore they are becoming a new power player in the world of finance.

Data providers use these regulations to create their own guidelines and criteria which they then measure the company against to calculate its ESG score.

Trusting the ESG scoring provided by vendors, investors are complying with their rating systems.

These are the 3 main factors affecting the ratings:

Estimation and Data Acquisition
There is a huge difference between the ways ESG data providers collect data about companies. Every firm has data that is publicly disclosed and can be collected using traditional techniques of sourcing information.

Then, there is the unreported data, which is where the statistical model analysis of ESG providers come into play.

The models are created by data collected from similar companies and observing market trends which are considered as benchmarks of the industry. These are judgment calls that data providers make when working through data acquisition for rating.

Materiality
There are various factors that are material to the financial performance of a company. This section deals with that part of ESG scoring. The importance of materiality is undeniable and has been established through academic studies.

As the ESG data providers have their own proprietary rating system, they make up their own determinations that support the issues related to materiality. This is where the lack of transparency comes to play, as ESG companies rarely reveal how they arrived at these determinations.

This creates a barrier in the selection process of an ESG data provider for the managers of a company.

Weighting and Aggregate
Weighting and aggregate are also incorporated into ESG rating by proprietary algorithms. They factor in the score summary but there is no set determination of these processes.

How can I assess the quality of ESG data?

Assessing the quality of ESG data comes down to three key points: ensuring the sources are trust-worthy, ensuring the sources are diverse, and ensuring the sources are up to date.
In order to attain reliable and accurate data, you should make sure to only purchase ESG data from trustworthy, proven sources, such as government websites and company reports.


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However, vendors collecting data only from company websites and internal reports can be highly biased. Check that the data is also covered by third party sources and that the vendor is drawing from multiple sources..

Finally, assure that the provider maintains the update frequency of their data. In fact, providers offering high update frequencies often tend to collect data from various sources, like financial news reports, company reviews, and social media, which also contributes to making the data less one-sided.

For data buyers, judging the quality of ESG data is a difficult job because the metrics guiding ESG ratings can get highly contextual and be completely different in each case. There is no standardized method to how ESG data should be measured or reported, and each provider uses their own benchmarks.

What are the challenges with ESG scores?

Judging the quality of ESG data is a difficult job due to the lack of standardization process. Equally, in each case ESG dataset providers use their own benchmarks and consequently the metrics guiding ESG ratings can get be highly contextual and be different. The major points surrounding the persisting challenges across ESG data collection are summarized below:

We have discussed the issues that persist in ESG data collection in the article above. Here are the major points summarized below.

  • The local level impacts of the ESG attributes cannot be measured at the granular level.
  • It can help to link ESG data with the fiscal performance of a company, though direct causation often cannot be drawn.
  • Data updates from the companies happen in inconsistent frequencies and at large intervals.
  • The data reported by companies can be biased. Therefore, methodologies employed by ESG companies tend to vary wide
  • The lack of standardization between the methods and source of data used by various data providers when rating companies,

How can I overcome these challenges?


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However, ESG data providers can help and are crucial in bridging the gap and eradicating inconsistent and biased ESG datasets. They collect and evaluate information related to a company’s ESG practice and then rate these companies on various relevant factors. Data providers that specialize in collecting and processing ESG data tend to be more similar in terms of rating as they employ similar methodologies. In addition to that, investors must not rely on a single ESG provider to rate a company based on all the aspects.

Instead, the ratings should be combined and taken as a guiding factor in deciding the rating of a company. This tends to produce a much better understanding of ESG operations of a company.

How will ESG benefit your company overall?

ESG data is invaluable for providing investors with the means to carry out data analysis and establish how sustainable the operations of a a particular company are. The ESG scores of a company allow investors to identify which companies consider the sustainability of their non-financial operations, helping to raise any red flags which may be detrimental to financial revenue in the long-term.

Environmental, social and governance criteria across different countries continues to determine how businesses are expected to operate in the long-term. It is through the rise in ESG that businesses are being increasingly held accountable for decisions which focus exclusively on financial gain and neglect the long-term non-financial implications of business operations. Poor ESG scores can negatively impact the reputation of a company, resulting in future stock price decline. Having access to this ESG data makes for an informed long-term investment decision. However, through the implementation of Artificial Intelligence (AI) technologies, the precision of ESG scoring systems will continue to increase.

How is ESG data priced?

The cost of subscription amongst various data companies is largely unknown at this point because the providers do not disclose this information on their websites. Firms can get in touch with them directly and avail monthly subscriptions like other services.

The factors that determine the pricing of ESG services include industry, scale, number of employees, manufacturing units, countries the country is working in, etc. However, firms can use data company platforms to get in touch with ESG data providers directly for more information about services and monthly data subscriptions. Equally, there are a number of government websites which can provide investors with basic ESG information.

Conclusion

ESG data is invaluable to the value analysis of a company, and it will continue to provide investors with valuable insights on the sustainability of a company. It will alert investors of red flags associated with any company’s portfolio.

The social, climate and other factors continue to determine how businesses should operate in the future. Businesses are going to be held responsible for the choices made instead of financial interests when a long term impact has been neglected in favor of capitalizing on momentary success.

ESG data providers are new in the market and a lot of it is veiled under a shroud of speculation. However, with the implementation of newer technologies like artificial intelligence, the ESG scoring system will continue to get much more accurate than it is today.

The methodologies of these companies might remain hidden due to proprietary reasons, the findings will begin coinciding with each other because machine learning has the capability of analyzing billions of data points to formulate the ratings, which is not an advantage simply analyst driven analytics can provide.

The right choice for investors is not to be tangled in the financial, social and governance methodologies, but to understand the scoring from various data providers. More specifically, data providers who specialize in ESG data and employ data acquisition from various balanced sources to ensure a much stable and reliable rating.

Finding the right ESG data

So there you have a comprehensive guide covering all you need to know about ESG data, from its definition and importance, to the top providers and its use cases.

To take the next step in finding the right ESG data for you by checking out the Datarade ESG providers page to see which providers can give you the ESG data products that you’re looking for. Datarade has assembled the top ESG data providers from around the world to give you all the choice you need when finding the data that will drive you results.

Who are the best ESG Data providers?

Finding the right ESG Data provider for you really depends on your unique use case and data requirements, including budget and geographical coverage. Popular ESG Data providers that you might want to buy ESG Data from are ISS ESG, Clarity AI, ESG Analytics, Sensefolio, and Knowsis.

Where can I buy ESG Data?

Data providers and vendors listed on Datarade sell ESG Data products and samples. Popular ESG Data products and datasets available on our platform are ISS ESG Pooled Engagement - for investors to exercise active ownership on ESG topics by ISS ESG, Clarity AI Sustainability ESG Risk Scores: Data for a wide coverage of companies, governments and funds through API by Clarity AI, and ESG Analytics Web Based Platform - ESG data for 193 Countries, 60k companies and 1200 ETFs by ESG Analytics.

How can I get ESG Data?

You can get ESG Data via a range of delivery methods - the right one for you depends on your use case. For example, historical ESG Data is usually available to download in bulk and delivered using an S3 bucket. On the other hand, if your use case is time-critical, you can buy real-time ESG Data APIs, feeds and streams to download the most up-to-date intelligence.

What are similar data types to ESG Data?

ESG Data is similar to Stock Market Data, Alternative Data, Merger & Acquisition Data, Proprietary Market Data, and Commodity Data. These data categories are commonly used for Investing and ESG Data analytics.

What are the most common use cases for ESG Data?

The top use cases for ESG Data are Investing, Risk Management, and ESG Investing.