The May 2024 report highlights the growing importance of third-party climate data and analytics providers as investment firms work to assess climate-related risks and opportunities. The market is crowded, with vendors generally categorized as data providers, aggregators, or portfolio and risk analytics providers. Vendors are expanding scale through partnerships and M&A, while buy-side spending on climate data and analytics is projected to reach $874 million in 2024, about three-quarters of total ESG data spending. Despite consolidation, firms still face abundant options, with data quality, management, and integration remaining key challenges.

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