New global survey shows ESG and climate data moving from optional add-ons to core components of investment workflows.

Morningstar Sustainalytics, part of Morningstar, Inc., a leading global provider of ESG data, research, and ratings, released findings from its inaugural State of ESG Data Survey, revealing a financial industry increasingly dependent on actionable sustainability information. Morningstar Sustainalytics clients surveyed cited ongoing challenges around data quality and coverage, increased demand for regulatory-aligned insights and a shift toward forward-looking climate and nature-related analytics.

The global quantitative survey collected responses from 145 financial market participants — including asset managers, banks, pension funds, wealth managers and other financial institutions — across EMEA, the Americas, and APAC.

Participants spanned a wide range of size, with 40% managing more than USD 50 billion in assets and 24% managing under USD 1 billion. EMEA accounted for the largest share of respondents (51%), reflecting the region’s strong regulatory momentum and advanced ESG practices.

David Pagliaro, president of Morningstar Sustainalytics, commented: “Our first State of ESG Data Survey shows that standardized ESG disclosures remain critical. However, investors increasingly need forward‑looking insights – particularly on climate risks and nature impacts. Even with shifting political rhetoric in some markets, the underlying demand has not changed: investors want high‑quality, comparable data to understand risks, support meeting regulatory obligations, and to help create long‑term value.”

The survey reveals that institutional investors are embedding ESG and climate information directly into investment processes, risk management tools and regulatory reporting workflows.

Yet consistent obstacles remain:

• 47% cited gaps in ESG data coverage
• 41% suffer from data quality issues
• 40% pointed to inconsistencies across vendors

Forward-Looking Climate Metrics in Demand

Forward-looking information is also gaining prominence. While International Sustainability Standards Board (ISSB) disclosures (73%) and sustainable bond data (68%) remain must have data sets, transition risk models were the area most frequently identified as uniquely valuable (35%). These findings suggest that investors increasingly need predictive tools to support long-term climate resilience and scenario-based decision making.

Nearly half of respondents ranked fund-level reporting capabilities among their top three needs—underscoring the increasing complexity of regulatory disclosures and the demand for end-to-end data integration.

ESG Data in Private Markets & Alternative Asset Classes

Private markets were identified as one of the most challenging areas for ESG and climate data. As investors pursue a whole portfolio approach to sustainability, many are expanding beyond listed markets into private assets where data availability remains limited.

Alongside private market data needs, respondents highlighted rising demand for:

• Regulation aligned datasets (58%)
• Greenhouse gas emissions data (56%)
• ESG risk ratings (49%)

With investors calling for deeper insights, stronger data foundations and more seamless integration, the State of ESG Data Survey 2025 underscores a market moving decisively toward maturity.

Source: Morningstar