Executive Summary
Are the boom times over for ESG data vendors? In 2021 and 2022, the EU’s Sustainable Finance Disclosure Regulation (SFDR) propelled the market forward at a very fast pace – spending on ESG data grew by 43% and 28% respectively during those two years.
These days, the picture looks quite different. The market for ESG data has matured and the days of fast-paced growth are now behind it. In 2023 and 2024, spending on ESG data decelerated, and regulatory backstepping in 2025 should continue this trend. Opimas expects the market’s growth to dip into the single digits starting in 2026.
Certain offerings, such as ESG ratings, have become commoditized, and as we have seen, this has forced some vendors to cut back on costs or exit the market entirely.
Another sign of market maturation is the slow-down in M&A activity. Very few deals occurred over the past few years and the market is now fairly concentrated. However, M&A activity could pick back up slightly if interest rates go lower.
All said, there are some growth opportunities for ESG data vendors. In addition to providing a discussion on the aforementioned trends, this report seeks to uncover those.