ESG

Banks and asset managers shelling out 425% more than rivals for similar ESG ratings data

Sustainability ratings providers charging premium prices as firms are being hit by brutal cost cuts

Thursday 14 March 2024 at 04:01

Demand for ESG ratings has boomed amid increasing regulation
Demand for ESG ratings has boomed amid increasing regulation Photo: Chris Ratcliffe/Bloomberg via Getty Images

Some banks and asset managers are shelling out four times more than peers for ESG ratings data at a time when the industry is facing pressure to cut costs.

A survey of 60 firms on the buy-side and sell-side with $27tn in assets found some consumers were paying 425% over the base price for similar products and services.