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A new study by the independent sustainability research firm Verdantix reveals 58% of senior executives of buy-side investors, who collectively manage $1 trillion in assets, identify climate change risk analytics as their ESG investment priority as they look to help future-proof their portfolios.  

According to the report, just over one in four (27%) say their priority ESG financial solution is ESG scores for investment decisions, followed by 12% who say it is ESG ratings for credit. Just 4% identify ESG indexes for benchmarking as their top ESG investment priority.

 The study also found buy-side investors are very concerned about the quality of ESG data available to them. Only one in four respondents (26%) say the quality of ESG data from credit rating agencies is very high or high.

In relation to sentiment monitoring, which leverages natural language processes and machine learning to determine the sentiment of investible assets, only 3% describe the quality of current market offerings as very high or high.