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Intro - ESG Integration Research Overview

The inclusion of ESG Ratings into the investment process has evolved over time. For example, some investment managers actively pursue strategies that exclude stocks with lower ESG Ratings while others focus on only selecting stocks with higher ESG Ratings. While there is a robust set of sustainability data and metrics to analyze portfolios, many investors want to know how incorporating ESG Ratings into their investment strategies is contributing to overall portfolio risk and return.

MSCI has performed extensive research to assess the risk and performance characteristics of MSCI ESG Ratings and MSCI ESG Indexes — You can find the details in the research papers listed below each section.

At a high level, our research looked at stock and fundamental (earnings) performance, systematic risks and idiosyncratic risks. Here, we answer some commonly asked questions, presenting key findings and links to the full blog posts or reports for greater detail.

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ESG Ratings and Financial Performance

In the ever-evolving landscape of investing, ESG Ratings have been criticized both for being too focused on ethical considerations and not focused enough on these issues. The true goal of MSCI’s ESG Rating methodology is to provide investors with a tool for assessing corporate risks as they work to build better portfolios.

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ESG and Financial Performance: Research Overview - Download paper

Did a company's ESG performance affect its stock price?

What is the fundamental performance of MSCI ESG Ratings?

What is the company-specific risk profile of MSCI ESG Ratings?

How does a company's ESG profile impact its exposure to systematic risk?

What is the long-term performance of MSCI ESG Indexes?

final - ESG Integration Research Overview


MSCI ESG Ratings, research and data 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).

Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results.


The content of this web page is research for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to interpret any performance information. Nothing herein is intended to promote or recommend any product, tool or service.

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