Energy Transition Framework See transition readiness more clearly.
Not every ton of carbon creates financial risk.
The energy transition is reshaping financial risk and opportunity in every industry. MSCI’s Energy Transition Framework identifies financially material risks driven by technology and policy changes, and evaluates companies’ readiness for the transition based on governance, targets and sector-specific emissions performance.
Built to go beyond disclosure and scores, this next-generation analytical tool offers a rules-based framework for assessing transition risk and opportunity — helping investors refine portfolio construction, engagement and target-setting to meet a range of objectives.
Actionable insights for capital allocation
By integrating sector-specific emissions drivers, policy exposure, and technology readiness, MSCI’s Energy Transition Framework offers insight into the evolving market dynamics that are defining the energy transition.
Develop transition-aligned strategies, manage funds through structured transition-risk frameworks, and detail exposures to asset owners and allocators.
Set targets grounded in financial materiality and get a bottom-up view of company and sector readiness aligned to real-world transition drivers.
Enhance risk management and hone allocation targets based on company- and sector-specific risks and opportunities.
Evaluate companies’ transition readiness based on exposure to material risks and opportunities tied to emissions, policy and technology.
Assess the viability of corporate plans, differentiate leaders from laggards, and forecast financial performance informed by transition readiness.
Transition readiness from the ground up
Our Energy Transition Framework assesses two key dimensions of the transition — transition pressure and transition readiness — on a scale of 0 (lowest) to 10 (highest) to deliver a granular view of financially material exposures tied to emissions, policy and technology drivers for companies in every industry.
Source: MSCI ESG Research, as of May 31, 2025.
Sharpen your view
Our framework helps investors assess transition readiness with consistent, company-level insights — integrating policy, emissions and technology data to identify potential opportunities and highlight hotspots of risk.
Clarity beyond emissions
Identify financially material risks driven by technology and policy changes, together with readiness of companies to address them within each industry.
A standardized view
Leverage a consistent framework and common language for evaluating companies' readiness based on industry-specific indicators.
Near-term, forward-looking insights
Navigate risks and opportunities with insights into transition pressure on valuations over a five- to seven-year horizon.
Transparency and flexibility
Delivers an overall score with detailed sub-scores and a transparent, traceable methodology — accessible through a dashboard, data feeds, APIs, and MSCI’s ESG Manager platform.
Extensive coverage
Evaluate transition readiness across the world’s listed companies, including fund-level metrics, integrated seamlessly with the MSCI ACWI Investable Market Index (IMI) universe.
Our Energy Transition Framework in action
Contrasting transition readiness for two steel companies.
Source: MSCI ESG Research, data as of May 31, 2025.
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Resources and research
The MSCI Sustainability Institute’s Transition Finance Tracker
See how capital is flowing and where risks are rising with 40+ charts and analysis.
Climate-Transition Risks and Lending Practices
What climate scenario analysis and stress testing reveal about credit risk across regions.
Financing the Climate Transition
A look at approaches to financing the transition of higher-emitting companies toward low-carbon business models.
Carbon Credit Price Indexes
A new generation of benchmarks designed to bring more structure and transparency to carbon markets.
