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How can investors use MSCI ESG Ratings?
How can investors use MSCI ESG Ratings?
MSCI ESG Ratings can be used by financial professionals across the investment value chain to inform investment decision-making, mitigate risk, and identify opportunities.
Explore the interactive tool below for more information.
ESG Client segmentation - interactive asset
Asset manager
Asset owner
Investment consultants
Wealth management
Investment professionals at firms managing client assets, including portfolio managers, ESG engagement and governance specialists, quant and risk teams, and investment product developers.
Investment professionals at asset owners including pension plans and funds, endowments and foundations, sovereign wealth funds, and the insurance and re-insurance industry.
Consultants operating in the institutional investment industry shaping investor policy, strategy, and asset manager selection.
Financial advisors and other investment professionals working in the wealth management industry including at brokerage firms, retail and digital advisory platforms.
Portfolio manager (equities)
Portfolio manager (Fixed Income)
in-house ESG specialist (Engagement Purposes)
Quant
Risk management
MSCI ESG Ratings can be used by portfolio managers to better understand how an issuer is managing sector-specific ESG risks and opportunities compared to peers. MSCI ESG Ratings is designed to flag outliers that may impact a company or fund’s long term profitability or stability. MSCI ESG Ratings aims to help portfolio managers better understand the long term intrinsic value or risk profile of a company or fund across an equity portfolio.
MSCI ESG Ratings can be used by fixed income portfolio managers to better understand the ESG risks and opportunities of corporate issuers, high yield and emerging market bonds, and government issuers, in addition to incorporating ESG factors into portfolio construction. MSCI ESG Ratings is designed to flag outliers that may impact an issuer or fund’s long term profitability or stability. MSCI ESG Ratings can provide insight into the long term ESG risk profile of an issuer or fund.
MSCI ESG Ratings can be used ESG professionals within asset management firms to help them identify the most significant factors which may impact a portfolio manager’s portfolio and to demonstrate the value of integrating ESG to internal stakeholders. Additional to the ESG Rating of approximately 6,400 companies, MSCI produces up to 70 industry reports and 20 thematic reports a year with color on sector and thematic leaders and laggards to support corporate engagement.
MSCI ESG Ratings offers global coverage and extensive data history which may help quants drill down into hundreds of metrics as they seek to identify inefficiencies or arbitrage opportunities within industries or across a global universe. MSCI ESG Ratings aims to provide quants with an ESG signal that may not be captured by traditional financial analysis.
MSCI ESG Ratings can be used to help risk managers identify portfolio or enterprise-level exposures to ESG risks such as carbon regulatory risk, water scarcity risk or governance and accounting irregularities. Risk Managers can monitor exposure to companies with the lowest ESG Ratings by industry or calculate portfolio exposures to ESG risks, which can inform further risk analysis, changes to the portfolio, or discussions with portfolio managers.
Pensions plans and funds
Endowments and foundations
Sovereign wealth
Insurance
MSCI ESG Ratings and MSCI ESG Portfolio Reporting tools can be used to monitor exposure to ESG and carbon risks, engage external asset managers on ESG, and engage portfolio holdings on ESG issues. The MSCI ESG Ratings are also used in the construction of over 700 MSCI ESG Indexes.
MSCI ESG Ratings and MSCI ESG Portfolio Reporting tools can be used to monitor exposure to ESG and carbon risks, engage external asset managers on ESG, and engage portfolio holdings on ESG issues. The MSCI ESG Ratings are also used in the construction of over 700 MSCI ESG Indexes.
MSCI ESG Ratings and MSCI ESG Portfolio Reporting tools can be used to monitor exposure to ESG and carbon risks, engage external asset managers on ESG, and engage portfolio holdings on ESG issues. The MSCI ESG Ratings are also used in the construction of over 700 MSCI ESG Indexes.
MSCI ESG Ratings can be used to integrate ESG into internal investment decision making processes (see equity and fixed income asset management). As asset owners, insurers can use MSCI ESG Ratings and MSCI ESG Portfolio Reporting tools to monitor exposure to ESG and carbon risks and engage external asset managers on ESG. Insurers may also use MSCI ESG Ratings to enhance risk assessments and pricing for commercial liability re/insurance, flood re/insurance, and D&O liability.
Investment consultants
Consultants may choose to monitor exposure to ESG and carbon risks to help measure the effectiveness of ESG integration at managers, as well as to inform engagement and dialogue. MSCI ESG Ratings and MSCI ESG Portfolio Reporting tools can also be used to report to clients on the ESG exposures, performance, and carbon footprint of their portfolios.
Home Office / Family Office
Financial Advisor
Retail platforms
MSCI ESG Ratings and MSCI ESG Fund Metrics, which uses MSCI ESG Ratings to identify ESG risks and opportunities within mutual funds or ETFs, can be used by the home office or family office to customize ESG solutions and to help financial advisors understand and report on the ESG profile of an investment portfolio to the end client.
MSCI ESG Ratings and MSCI ESG Fund Metrics, which uses MSCI ESG Ratings to identify ESG risks and opportunities within mutual funds or ETFs, can be used by financial advisors to help identify the investment vehicles that meet client investment objectives while aligning with their ESG mandates or values.
MSCI ESG Ratings and MSCI ESG Fund Metrics, which uses MSCI ESG Ratings to identify ESG risks and opportunities within mutual funds or ETFs, can be used by retail and fintech platforms to customize ESG solutions, help identify investment vehicles that meet client investment objectives while aligning with values, and to report on the ESG profile of a portfolio to clients.
ESG Ratings Methodology - Executive Summary
ESG Ratings Methodology - Executive Summary
From natural resource scarcity to changing governance standards, from global workforce management to the evolving regulatory landscape, ESG factors can impact the long-term risk and return profile of investment portfolios.
EQUIFAX CYBER SECURITY SCANDAL
EQUIFAX CYBER SECURITY SCANDAL
On September 7, 2017, Equifax revealed it was a victim of a cyber-attack potentially compromising 143 million U.S. consumers' sensitive information.