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The EU is pursuing the most ambitious sustainable finance package globally. MSCI is actively involved in, and providing its expertise to, several EU expert committees.

  • MSCI has been a member of the EU Commission’s 35 member Technical Expert Group and focused on requirements for the EU climate benchmarks and ESG benchmarks disclosures in the TEG Final Report in September 2019. The TEG expired in September 2020
  • MSCI is a member of the EFRAG’s European Lab Project Task Force which is helping to define enhancements to the EU Non-Financial Reporting Directive (NFRD)

EU Intro

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  • Climate Benchmarks


    With the new voluntary climate benchmark regime in the EU, MSCI launched the first provisional EU Paris-aligned benchmarks (PAB) and EU Climate Transition benchmarks (CTB) in November 2019.

  • ESG Benchmarks Disclosures


    In May, 2020, MSCI published ESG metrics required only for ESG indexes under the EU benchmark regulation, for all MSCI regulated equity and blended indexes on the Index Profile search tool. Fixed income indexes were included in July 2020. More information (including about the required methodology disclosures) can be found on the index regulation page of our website.

  • Sustainable Finance Disclosure Regulation (SFDR)


    Since July 2020, MSCI ESG Research has made available to clients a current mapping of MSCI ESG data to the Annex 1 Principal Adverse Sustainability Impact data requirements in the Joint ESAs Consultation on ESG Disclosures. However, this mapping and relevant datapoints are just an initial resource we are making available to clients to support them in addressing the SFDR disclosure requirements. MSCI ESG Research is actively building out new solutions to help clients seeking to meet their disclosure requirements.
    • Adverse Impact Indicators: MSCI ESG Research’s approach to developing a dataset for the adverse impact indicators is to follow the same hierarchy for sourcing this data as is presented in the draft RTS of the Joint Consultation Paper on ESG Disclosures that is, to:
      1. Collect readily available data: MSCI ESG Research searches the company disclosures and reporting of over 10,100 global companies for adverse impact information.
      2. Engage via company outreach: Leveraging its extensive contact database and Issuer Communications Portal, MSCI ESG Research presents companies with the findings of our disclosure search and directly requests adverse impact information.
      3. Fill gaps: Anticipating that there will be significant gaps in company disclosure, MSCI ESG Research draws on its extensive suite of ESG data to offer credible, equivalent indicators for assessing adverse sustainability impacts that are not reliant on company disclosure.
    • We believe this robust approach will save our clients significant time and resources and help to prepare them for the upcoming disclosure deadlines. If you are a client, please access our FAQ document for more information.

  • EU Taxonomy


    Since July 2020, MSCI ESG Research has made available to clients [an Estimated EU Taxonomy Alignment Guide setting out possible approaches for institutional investors to identify global companies with business activities potentially aligned with the EU Taxonomy in the absence of corporate disclosure of Taxonomy-aligned revenue and expenses. The guide provides information on how to identify and measure companies’ involvement in sustainable activities based on available data and metrics along with potential screens and results. We are also developing a new screening factor that combines each of the core data elements of our standard approach to analysing Taxonomy alignment into the methodology for an Estimated EU Taxonomy Alignment screening factor.

Webinars: You can find our webinars about the EU Sustainable Finance Package.

EU Sustainable Finance Related cards