ESMA Call for Evidence
In a letter dated 12 November 2021, ESMA conducted a call for evidence to obtain information on the nature and size of the market for ESG rating and data providers in the EU. The aim was to present the market situation in relation to the European Commission’s strategy for financing the transition to a sustainable economy and ESMA’s roadmap for sustainable finance.
A total of 75 financial service providers were surveyed regarding their use of ESG rating and data providers. The results are available as of 24 June 2022.
In the survey, 63% of respondents indicated that they use both ESG ratings and other ESG data products. On average, 50% of respondents already incorporate ESG ratings and/or other ESG data products into the investment decision-making process for all assets under management.
In addition, 77% use more than one provider to increase coverage of companies, compare different ratings and add additional data points to their analysis.
The key selection factors for database providers are data coverage and quality, accessibility, transparency and completeness of analysis, and diversity of performance indicators offered.