Sustainable Finance Intro

Sustainable Finance looks set to become one of the biggest regulatory revolutions over the coming years. Additionally, many industry stakeholders are developing different standards and frameworks to address ESG, sustainability risk and climate integration and disclosure.

MSCI is committed to furthering the development of ESG, sustainability risk and climate integration and disclosure, regulation and standards, including the EU Sustainable Finance package. We continually update this resource page, please check back regularly. Alternatively sign-up to receive our Sustainable Finance newsletter. If you would like to learn more about our solutions, visit our Sustainable Finance Solutions. Any questions, please contact us.


Sustainable Finance Video

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Principles of Sustainable Investing

In January 2020, we published The MSCI Principles of Sustainable Investing urging all investors globally to integrate ESG considerations into their investment processes.

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Our Approach

With over 40 years of experience in objectively measuring and modelling ESG performance, MSCI has been at the forefront of providing data, research and other tools to help enable ESG and climate integration across the entire investment process. Learn more about our approach to ESG and climate research and transparency which underpins our sustainable finance work.

MSCI ESG Research

  • First ESG provider to assess companies based on industry materiality, dating back to 1999. Only dataset with live history (14 years) demonstrating economic relevance3
  • Objective rules based ESG ratings, with an average 45% of data,4 coming from alternative data sources, utilizing AI tech to extract and verify unstructured data
  • First ESG ratings provider to measure and embed companies’ ESG risk exposure5

 

MSCI Inc.

  • MSCI has been calculating ESG indexes for more than 30 years beginning with the launch of the Domini 400 Social Index (now the MSCI KLD 400 Social Index) in 1990.1 Learn more
  • MSCI now calculates over 1,500 equity and fixed income ESG Indexes designed to help institutional investors more effectively benchmark ESG investment performance and manage, measure and report on ESG mandates, including climate. MSCI also calculates customized ESG indexes taking into account specific client ESG considerations.  
  • MSCI offers a range of climate indexes for investors who seek to incorporate climate risks and opportunities into their investment process. Learn more.
  • 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 based on the TEG Final Report issued in September 2019. In October 2020, MSCI launched a series of Climate Paris Aligned Indexes which are designed to exceed the minimum standards of the Paris Aligned Benchmarks in the EU Benchmark Regulation (BMR). Learn more2

MSCI strives to bring greater ESG and climate transparency to financial markets and support the evolving complex needs of the investment community. Our transparency tools showcase MSCI ESG and climate metrics for tens of thousands of funds, companies and indexes, helping to drive awareness, educate the market and raise ESG disclosure standards.

 

The MSCI ESG Research and equity and fixed income research teams regularly produce ESG and climate research papers, blogs and interactive insights to help investors explore key ESG themes, risks and opportunities. For More information about MSCI Climate and ESG research can be found at MSCI Research.

MSCI’s Climate Solutions give you access to a wide range of tools and data designed to enable you to address a variety of needs including measuring and reporting on climate risk exposure, implementing low carbon fossil fuel-free strategies, factoring climate change research into risk management processes and engaging companies and external stakeholders.

MSCI’s Climate Risk Center, based in Zurich, works with leading academic and research institutions around the world to advance the use of climate science for financial risk analysis. 

EU Sustainable Finance Package

EU Sustainable Finance Package

The European Union is pursuing the most ambitious sustainable finance package globally. MSCI is actively involved in several Committees providing its expertise to the EU Commission.

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SEC Proposed Climate-Disclosure Rules

SEC Proposed Climate-Disclosure Rules

A resource hub of MSCI ESG Research’s latest insights on the SEC’s proposed climate-disclosure requirements.

Learn More

Guides and Mappings for ESG Labels and Frameworks


Guides and Mappings for ESG Labels and Frameworks

MSCI continues to map and expand MSCI’s offerings to keep up with various standards around the world. For more information about the guides and mappings below available to clients, please contact us.

Sustainable Finance Consultation Responses

Sustainable Finance Consultation Responses

MSCI’s team of sustainable finance experts have been actively monitoring and engaging in ESG, sustainability risk and climate consultations, globally. Please find below a summary of MSCI’s responses to sustainable finance related consultation papers.

MSCI responses to consultations pertaining to EU Benchmark Regulation (including EU Climate Benchmarks and ESG Benchmarks Disclosures) can be found at https://www.msci.com/index-regulation in the “MSCI Responses to Regulatory Consultations Section”.

Australia Government - The Treasury Consultation on Your Future Your Super (YFYS) - Annual Superannuation Performance Test - design options
MSCI Response (PDF)
European Banking Authority (EBA) Consultation on Draft Guidelines on the management of ESG risks
MSCI Response (PDF)
EU Commission's Targeted consultation on the implementation of the Sustainable Finance Disclosures Regulation (SFDR)
MSCI Response (PDF)
Financial Reporting Council (FRC) Call for Evidence to inform the proposed endorsement of the IFRS Sustainability Disclosure Standards in the UK
MSCI Response (PDF)
Basel Committee on Banking Supervision (BCBS) consults on revisions to the Core principles for effective banking supervision
MSCI Response (PDF)
Basel Committee Consultation on Disclosure of climate-related financial risks
MSCI Response (PDF)
EU Commission Proposal for Regulations on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities
MSCI Response (PDF)
Australia Government - The Treasury Second Consultation on Climate-related financial disclosure
MSCI Response (PDF)
EU Commission Consultation on Draft Delegated Regulations Setting Criteria on Environmentally Sustainable Activities Under the EU Taxonomy
MSCI Response (PDF)
IFRS/ ISSB Request for Information - Consultation on Agenda Priorities
MSCI Response (PDF)
ESAs Call for Evidence on Greenwashing
MSCI Response (PDF)
The Australia Treasury Consultation paper on Climate-related financial disclosure
MSCI Response (PDF)
ESAs Joint consultation on the review of SFDR Delegated Regulation
MSCI Response (PDF)
EU Consultation on European sustainability reporting standards – first set
MSCI Response (PDF)
HM Treasury Consultation on Future Regulatory Regime for ESG Rating Providers
MSCI Response (PDF)
EU Consultation on Draft Delegated Regulations Setting Criteria on Environmentally Sustainable Activities Under the EU Taxonomy (“Delegated Act”)
MSCI Response (PDF)
ESMA Proposed Guidelines on funds’ names using ESG or sustainability-related terms
MSCI Response (PDF)
Federal Reserve Board invites public comment on proposed principles providing a high-level framework for the safe and sound management of exposures to climate-related financial risks for large banking organizations
MSCI Response (PDF)
UK FCA Consultation on Sustainability Disclosure Requirements and Investment Labels
MSCI Response (PDF)
Australia Government - The Treasury Consultation on Review of Your Future, Your Super Measures
MSCI Response (PDF)
Public consultation on first set of Draft European Sustainability Reporting Standards
MSCI Response (PDF)
IFRS’ Exposure Draft on Climate-related Disclosures
MSCI Response (PDF)
UK Government’s Call for Evidence – Update to Green Finance Strategy
MSCI Response (PDF)
EU Commission’s Targeted Consultation On the Functioning Of the ESG Ratings Market in the European Union and on the Consideration of ESG factors in Credit Ratings
MSCI Response (PDF)
SEC - The Enhancement and Standardization of Climate-Related Disclosures for Investors
MSCI Response (PDF)
Department of Labor – Employee Benefits Security Administration’s request for Information on Possible Agency Actions to Protect Life Savings and Pensions from Threats of Climate-Related Financial Risk
MSCI Response (PDF)
Office of the Comptroller of the Currency Request for Feedback on Principles for Climate-Related Financial Risk Management for Large Banks
MSCI Response (PDF)
Department of Labor’s (DOL) Request for Comment on its proposed rule on Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights
MSCI Response (PDF)
Federal Insurance Office (FIO) Request for Information on the Insurance Sector and Climate-Related Financial Risks
MSCI Response (PDF)
IOSCO’s Consultation Report on Environmental, Social and Governance (ESG) Ratings and Data Products Providers issued on July 26, 2021
MSCI Response (PDF)
IOSCO’s recommendations on Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management issued on June 30, 2021
MSCI Response (PDF)
HKMA’s Consultation on Supervisory Policy Manual on Climate Risk Management issued on July 20, 2021
MSCI Response (PDF)
NY DFS proposed guidance to New York insurers on managing the financial risks from climate change – Issued 25 March, 2021
MSCI Response (PDF)
SEC Climate Change Disclosures – Issued on 15 March, 2021
MSCI Response (PDF)
European Supervisory Authorities (ESAs) joint consultation on taxonomy-related sustainability disclosures – Issued on 17 March, 2021
MSCI Response (PDF)
OSFI consultation on climate-related risks in the financial sector – Issued on 11 January, 2021
MSCI Response (PDF)
FINMA Consultation on Climate-Related Financial Risks Disclosures for Banks And Insurers – Issued on 10 November, 2020 (German) (PDF)
Key Points (English) (PDF)
MSCI Response (PDF)
SFC Consultation Paper on the Management and Disclosure of Climate-related Risks by Fund Managers – Issued on 29 October, 2020 (PDF)
MSCI Response (PDF)
European Supervisory Authorities' consultation on ESG disclosure standards for financial market participants, advisers and products – Issued on 23 April, 2020 (PDF)
MSCI Response (PDF)
US Department of Labor Proposal on Financial Factors in Selecting Plan Investments – Issued on 30 June, 2020 (PDF)
MSCI Response (PDF)
IFRS Foundation Consultation Paper on Sustainability Reporting – Issued on 30 September, 2020 (PDF)
MSCI Response (PDF)
ESMA consultation on Draft advice to European Commission under Article 8 of the Taxonomy Regulation – Issued on 5 November, 2020 (PDF)
MSCI Responses (PDF)
Canadian Investment Funds Standards Committee’s proposal to adopt a RI fund identification framework – Issued on 7 October, 2020(PDF)
MSCI Response (PDF)
Ontario Capital Markets Modernization Taskforce Consultation Report – Issued on 9 July, 2020 (PDF)
MSCI Responses (PDF)
ECB consultation on its guide on climate-related and environmental risks – Issued on 20 May, 2020 (PDF)
MSCI Response (PDF)
CFA Institute's consultation paper on the Development of ESG Disclosure Standards for Investment Products – Issued on 21 August, 2020 (PDF)
MSCI Responses (PDF)
ESAs Survey on templates for Environmental and/or Social financial products under SFDR – Issued on 21 September, 2020 (PDF)
MSCI Response (PDF)
US DOL consultation on Fiduciary Duties Regarding Proxy Voting and Shareholder Rights – Issued on 31 August, 2020 (PDF)
MSCI Responses (PDF)
European Commission consultation on Establishment of an EU Green Bond Standard – Issued on 12 June, 2020 (PDF)
MSCI Response (PDF)
EU Consultation on the Delegated Regulation on ESG Criteria (Benchmarks) – Issued on 8 April, 2020 (PDF)
MSCI Responses (PDF)

 

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* Climate Data and Metrics, Climate Risk Reporting and Scenario Analysis are provided by MSCI ESG Research LLC. MSCI ESG Indexes and Analytics utilize information from, but are not provided by, MSCI ESG Research LLC. MSCI Equity Indexes are products of MSCI Inc. and are administered by MSCI Limited.

 

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. 

ESG ADV 2A (PDF, 354 KB)
ESG ADV 2B (brochure supplement) (PDF, 232 KB)