ERTC Intro

What is the Climate Target and Commitments Dataset?

A growing number of companies are committing to cut their carbon footprints to net-zero in the coming decades. But targets that can appear similar on the surface may turn out to differ in their details. Untangling those commitments is critical for investors seeking to measure or manage climate risk in their portfolios.

The Target and Commitments dataset from MSCI ESG Research helps investors evaluate companies’ pledges to decarbonize and compare decarbonization commitments among companies. The dataset details and standardizes the publicly stated commitments of most publicly listed companies to provide a complete picture of their targets in a single view.

The dataset can help investors assess companies’ plans to reach net-zero emissions and inform climate risk engagement.


ERTC Why

Designed for Constructing Climate-Aligned Portfolios

The Climate Target Scorecard is designed to help investors:

  • Untangle corporate decarbonization pledges
  • Compare decarbonization commitments by publicly listed companies
  • Inform climate risk engagement
  • Report portfolio emissions pursuant to frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD).
 

A picture of portfolio company progress

The Climate Target and Commitments dataset provides a snapshot of a company’s decarbonization target and main drivers of carbon emissions. It illustrates the aggregate projected reduction in carbon emissions the company has pledged to achieve each year.

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Climate Target Scorecard for a Hypothetical Company

The Climate Target dataset is designed to address the disparity in corporate decarbonization targets. While some companies aim to achieve net-zero emissions across their entire carbon footprint, others map their targets to something less than the whole. The scorecard evaluates a company’s climate commitments based on their:

  • Comprehensiveness, which addresses whether a target is focused on all scopes and geographic sources of the company’s total emissions.
  • Ambition, which refers to the amount of the emissions reduction embedded in the target and the target timeline.; and
  • Feasibility, which refers to how much confidence an organization can have that a net-zero target will be achieved.
The image shows a table which addresses the comprehensiveness, ambition and feasibility of corporate climate targets

Climate Target Scorecard for a Hypothetical Company

The table below summarizes the key components of each dimension.


Nested Applications

Comprehensiveness

Comprehensiveness

What share of the company’s emissions does the target address?
  • Type
  • Unit
  • Target scopes
  • Effective coverage: percentage of the company’s carbon footprint covered by the targets

Description

Ambition

By how much and how quickly does a target aim to reduce emissions?

  • Projected annual reduction (%)
  • Target year end

Feasibility

Feasibility

How feasible is a given target, and how much confidence can investors have in the company achieving it?

  • Track record of meeting previous targets
  • Progress on active targets
  • Target scopes
  • Intension to use carbon offsets

Our Net-Zero Resources

 

The Climate Target Scorecard and supporting data are available as part of MSCI Climate Metrics, a suite of data and analytical tools that institutional investors rely on to integrate climate considerations throughout the investment process.

 

Our Net-Zero Resources

The Climate Target and Commitments dataset is part of a platform of data and analytical tools developed by MSCI’s Climate Risk Center, an industry leader in climate change risk analytics, modeling and methodology.

Implied Temperature Rise

Designed to show the temperature alignment of your investments with global climate targets.




Implied Temperature Rise

Climate Scenario Analysis

Deepen insight into how the physical and transition risks and opportunities of climate change may affect company valuations.



Climate Scenario Analysis

Climate Data and Metrics

Supports sustainability-focused strategies and deepen investors’ insight into climate-related risks and opportunities across multiple dimensions.


Climate Data and Metrics


Want to get in touch to find out more? ERTC

 

Want to get in touch to find out more?

Please contact our team of climate specialists to learn more about our Climate Target and Commitments Dataset, our series of net-zero solutions or to discuss your own climate objectives.

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ERTC Related Cards

Targets footnotes 1

The Target and Commitments Dataset is provided by MSCI ESG Research LLC. MSCI ESG Indexes and Analytics utilize information from, but are not provided by, MSCI ESG Research LLC. MSCI Indexes and Analytics are products of MSCI Inc. and are administered by MSCI Limited (UK).


ESG Investing footnotes

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.

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.  We do not provide custom or one-off ratings or recommendations of securities or other financial instruments upon request.

ESG ADV 2A
ESG ADV 2B (brochure supplement)


Regulation