Implied Temperature Rise (ITR) model update

At MSCI, we are constantly strive to improve our models in line with industry standards and provided investors with a better understanding of how companies and portfolios aligned with the global temperature goals.

Following our consultation earlier in the year, we were thrilled to announce a major update to our Implied Temperature Rise (ITR) metric to align it with the latest GFANZ Measuring Portfolio Alignment working group recommendations, which was rolled out in January 2024.

Watch our virtual event where we discussed key changes including:

• Alignment with the 1.5°C NGFS 2050 Net Zero scenario, adopting sector-specific 2050 decarbonization pathways for each scope.
• Tracking of company emissions from 2019 onwards, ensuring up-to-date and accurate assessments.
• Introduction of a climate target credibility assessment, providing a comprehensive evaluation of companies and portfolios.

We also shared a high-level comparison of outputs between the current and updated ITR models.