Institutional investors are becoming increasingly aware of the potential risk and value impact of ESG factors, and their potential effect on an investment profile. ESG factors - from environmental practices to labor standards to regulatory compliance - can have a material impact to the long-term risk and return profile of investment portfolios. Managing investment risk, including ESG risk, is part of an integrated portfolio construction and management process. MSCI ESG IVA can help with the integration of ESG factors into the investment process.

MSCI ESG IVA looks beyond "green washing" and rates and analyzes over 2,000 global companies. Analysts assess thousands of ESG data points across 34 key ESG issues analyzing the intersection between a company’s ESG impacts and its core business, focusing on those issues that create significant financial risks and opportunities for the company.

Companies are rated by MSCI ESG analysts on an 'AAA' - 'CCC' scale relative to the standards and performance of their industry peers. These MSCI ESG IVA ratings provide information on a company’s positive or negative ESG impact on the world as well as the company's risk of internalizing a positive impact. The MSCI ESG IVA Rating is also intended to be style-neutral and can be applied to either equity or bond portfolios.

MSCI ESG IVA clients receive access to a database of company profiles and industry sector reports. Each company profile includes relevant ESG performance data as well as an analysis of possible risks and opportunities facing the company, relative to sector peers. Sector reports provide updates on changes to the ESG risk landscape of each industry, and how well prepared each company is to meet those challenges.

MSCI ESG IVA is now available in the MSCI ESG Manager platform.

To learn more about MSCI ESG IVA, contact ESG Client Service.