Intro 2025 - Fund-Level Sustainability Insights

Access a broader sustainability and climate fund-level universe

Sustainability and climate data for over 71,000 mutual funds and ETFs is now available via MSCI ONE with a subscription.1

To learn more about how to access MSCI ONE, please connect with us.

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How - Fund-Level Sustainability Insights

How do MSCI ESG Fund Ratings work?

Each fund or ETF scores a rating on a scale from CCC (laggard) to AAA (leader). The rating is based first on the weighted average score of the holdings of the fund or ETF.

  • Laggard

    The fund is exposed to companies that do not demonstrate adequate management of sustainability risks that they face or show worsening management of these issues. These companies may be more vulnerable to disruptions arising from sustainability events.

  • Average

    The fund is exposed to companies that tend to show average management of sustainability issues, or a mix of companies with above-average and below-average sustainability risk management.

  • Leader

    The fund is exposed to companies that tend to show strong and/or improving management of financially relevant sustainability issues. These companies may be more resilient to disruptions arising from sustainability events.


Video - Fund-Level Sustainability Insights

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MSCI ESG Fund Ratings

Gain insight into the sustainability characteristics of funds with an intuitive rating to better inform fund research, product selection, portfolio reporting across asset classes.

 

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What - Fund-Level Sustainability Insights Duplicate 1

What do the MSCI ESG Fund Ratings measure?

MSCI ESG Fund Ratings are designed to measure the Environmental, Social and Governance (ESG) characteristics of a fund’s underlying holdings, making it possible to rank or screen mutual funds and ETFs on a AAA to CCC ratings scale.

We also license additional metrics designed to provide insights across multiple dimensions, including carbon footprint, water exposure or governance risks. These can be used for a variety of purposes, for example if an investor seeks to align a portfolio to organizational values or identify and report on measurable social or environmental impact.

Explore ESG Ratings


Using - Fund-Level Sustainability Insights Duplicate 1 Duplicate 2

Using MSCI ESG Fund Ratings

MSCI ESG Fund Ratings are designed to offer investors greater insights into the sustainability characteristics of funds and ETFs, as well as provide additional information with respect to ESG fund research, product selection, portfolio construction and portfolio reporting processes across asset classes.

Specifically, the MSCI ESG Fund Ratings may be used by wealth and fund managers seeking to:

  • Screen for funds they see as aligning with client values
  • Offer reporting on sustainability characteristics of client investments
  • Measure sustainability impacts arising from investments
  • Complement manager due diligence

Resources - Fund-Level Sustainability Insights

Research and resources

Evolution of Fund Naming Calls for Deeper, Data-Driven Sustainability Insights

With ESMA’s fund-naming guidelines coming into effect in May, sustainability-related fund names are declining while transition-themed funds are growing. Data-driven insights will be key to navigating and understanding underlying sustainability attributes.

The Fund-Name Challenge: Matching Investor Needs and Supervisory Expectations

To adhere to ESMA’s fund-naming guidelines, sustainability-minded fund managers may have to choose between fund name and preferred investment strategy. Our analysis shows that almost 11% of MSCI ACWI IMI constituents by weight could become ineligible investments for such funds.


Related content - Fund-Level Sustainability Insights

Footnotes - Fund-Level Sustainability Insights

MSCI ESG Research LLC. is a Registered Investment Adviser under the Investment Adviser Act of 1940. The most recent SEC Form ADV filing, including Form ADV Part 2A, is available on the U.S. SEC’s website at www.adviserinfo.sec.gov (opens in a new tab).

MIFID2/MIFIR notice: MSCI ESG Research LLC does not distribute or act as an intermediary for financial instruments or structured deposits, nor does it deal on its own account, provide execution services for others or manage client accounts. No MSCI ESG Research product or service supports, promotes or is intended to support or promote any such activity. MSCI ESG Research is an independent provider of ESG data, reports and ratings based on published methodologies and available to clients on a subscription basis.

ESG ADV 2A(opens in a new tab)
ESG ADV 2B(opens in a new tab)

Implied Temperature Rise, Climate Data and Metrics and MSCI ESG Fund Ratings are produced by MSCI ESG Research LLC, a subsidiary of MSCI Inc. MSCI ESG and Climate Indexes are products of MSCI Inc. that utilize information from MSCI ESG Research LLC. MSCI Indexes are administered by MSCI Limited (UK).

1 All data as of March 2025.