Market participants, including asset owners and asset managers, spent an estimated $505 million on environmental, social and governance related content and indexes in 2018. Furthermore, data compiled by management consultant Opimas show that spending is estimated to increase almost 48% by 2020 to $745 million.
Industry expenditures on indexes increased by $35 million in both 2018 and 2019, while spending on content, such as data, research, analytics and ratings, grew by $55 million in 2018.
ESG-focused assets under management totaled more than $30 trillion at the end of 2018, according to Opimas, up from $23 trillion in 2016. Furthermore, the consultant estimates this number could grow to $35 trillion by 2020. With that AUM growth comes the need for more and better information, as well as an increasing number of buyers. Interest from more than just asset managers has been a key driver in the demand for ESG-related data. Asset owners and corporations have added an ESG element to their operations believing that these criteria also impact their bottom line and stakeholders.