Methodology
To maintain MSCI ESG Business Involvement Screening Research data feeds, a dedicated analyst team looks for company involvement in 16 different lines of business.
Clients can set screens on any degree of involvement in these businesses, or set revenue thresholds:
- Abortifacients
- Abortion Provider
- Adult Entertainment
- Alcohol
- Animal Welfare
- Cluster Bombs
- Contraceptives
- Firearms
- Gambling
- Genetic Engineering (GMOs)
- Landmines
- Nuclear Power
- Pork
- Predatory Lending and CRA Research
- Stem Cell
- Tobacco
- Weapons Producers
To maintain MSCI ESG Business Involvement Screening Research data feeds, the MSCI ESG Research team collects company information from media, government and NGO sources, as well as company disclosure.
Each compliance issue is updated on an annual basis. The annual update process involves confirming involvement and updating all companies with the most recent fiscal year revenue information, as well as conducting a systematic new company search.
On a monthly basis, relevant corporate actions, IPOs, name changes, and other corporate activities are monitored and companies are updated where necessary. In addition, news feeds and financial data are actively monitored to ensure companies entering and exiting controversial business areas are captured and documented.
MSCI ESG Research provides the total company revenue derived from involvement in the majority of the 16 compliance areas covered.
Where exact involvement-related revenue is not available through company disclosure, company engagement, or other public information source, MSCI ESG Research provides a revenue estimate, based on all information available and relying on analyst expertise.
Revenue info is not provided for Abortion Provider, Animal Welfare, Stem Cell, GMOs, Landmines, or Cluster Bombs screens. Additionally, MSCI ESG Research does not provide revenue or revenue estimates for companies with indirect involvement to a screened activity, either through a parent company or subsidiary.
In addition to revenue information, MSCI ESG Research provides a profile of each company’s specific CBI involvement. The company profile note includes details on the company’s tie to the CBI activity and any relevant corporate actions in the last three fiscal years. The profile note also provides ownership information if the company has ties, through a subsidiary or parent company, to the CBI activity in question.
