Morningstar Sustainalytics: Institutional Investors Signal Rising Demand for ESG Data Integration Amid Market Maturity
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. (NASDAQ:MORN), a leading global provider of ESG data, research, and ratings, today 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.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, institutional investors in the debt and private capital markets, and alliances and redistributors. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $378 billion in AUMA as of Dec. 31, 2025. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on LinkedIn @Morningstar.
About Morningstar Sustainalytics
Morningstar Sustainalytics is a leading ESG data, research, and ratings firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 30 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Morningstar Sustainalytics works with hundreds of the world's leading asset managers and pension funds who incorporate ESG information and assessments into their investment processes. The firm also works with hundreds of companies and their financial intermediaries to help them consider material sustainability factors in policies, practices, and capital projects. Morningstar Sustainalytics has analysts around the world with varied multidisciplinary expertise across more than 40 industry groups. For more information, visit www.sustainalytics.com.
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Louis Hogan, [email protected], +44 753454 40330, Communications Manager Morningstar Sustainalytics