We believe that a key differentiator for Morningstar Sustainalytics is our ability to connect our strengths in ESG data and analytics with our capabilities elsewhere in the Sustainalytics product suite and the broader Morningstar business to meet client demands. For example, we’re increasingly focused on the ESG portfolio analytics and reporting use case, drawing on our portfolio analytics capabilities, a core Morningstar competency. We also see an opportunity to draw on our expertise in second-party opinions (SPOs) to support transition-finance related use cases for banks in investor solutions.
Morningstar Sustainalytics is one of the leading providers of ESG data. We continue to win new business in our core product sets with institutional investors across Europe. We remained focused on the regulatory, compliance, and risk management requirements in this segment and have been able to win new business and increase share from existing clients. That said, we’re not aware of any independent market share estimates for Morningstar Sustainalytics’ license-based products, which makes it difficult to track short-term market changes. In general, it’s our observation that we’re winning some deals and losing others, but we haven’t seen a strong trend in one direction to suggest our market share has changed materially.
Morningstar Sustainalytics has a market-leading position in SPOs according to Environmental Finance, which regularly publishes market share data for SPO providers. For the first six months of 2024, Morningstar Sustainalytics accounted for 22.7% of new and updated assessments of green, social, sustainability, sustainability-linked, and transition finance frameworks for bonds and loans. That represented an increase from 18.3% in 2023, although as we’ve noted previously, we don’t view shorter-term fluctuations in market share as meaningful given the relative immaturity of the market. Private SPOs are not included in these figures.