ESG Data Market Gaps: 3 Areas of Interest for Investors Measuring Material ESG Risk

Environmental, social, and governance (ESG) considerations continue to accelerate for financial market participants at every level, from asset managers and pension plan sponsors to wealth advisors and retail investors. Many global investors already incorporate ESG factors into their evaluation of public companies across developed markets. We are now observing increasing interest in applying ESG considerations across a broader set of asset classes and regions.

A growing list of ESG data sources is emerging to support increasing market demand; however, data availability and reliability for certain asset classes remain challenging. In this article, we explore three areas in which investors are seeking more ESG data: fixed income, emerging markets, and private equity.
– Fixed-Income Investors Want More Reliable Sustainability Data
– Emerging Markets: Investors Are Looking More Closely at China for ESG Opportunities
– Investors Seek More ESG Disclosure from Privately Held Companies

To meet the growing demand for ESG data in the three areas discussed, Morningstar Sustainalytics has significantly expanded its analyst-based ESG Risk Ratings to more than 16,300 companies to support investors across their entire portfolio. This expanded universe offers wider coverage of analyst-based research and ratings and includes more coverage for fixed income issuers, private companies, and Chinese companies listing A and/or B shares. Asset managers, wealth managers and retail managers who incorporate ESG factors to guide their security selection, portfolio construction and reporting can now access a broader set of data across diverse asset classes and geographies.

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