Showing 21 - 30 of 326 entries
Research PaperDeconstructing ESG Ratings Performance: Risk and Return for E, S And G by Time Horizon, Sector and Weighting
How are environmental, social and governance (ESG) ratings constructed? Which indicators are the most important in assessing ESG characteristics? Does the answer vary by sector? This foundational paper examines the impact on financial performance of two types of ESG indicators: the individual E, S and G pillars scores and the underlying ESG Key Issue scores. They found that these indicators related differently to companies’ financial performance and challenges the conventional wisdom that “G”...
MSCI EventDeconstructing ESG Ratings Performance
Research PaperGreen Bonds — Trends and Beyond
The rapid growth in green bond issuance since 2015, along with diversification in types and regions of issuers, has resulted in substantial expansion of the Bloomberg Barclays MSCI Green Bond Index. In this paper, we examine the key trends facing the green bond market by analyzing the evolving composition of the index since its inception. We also examine key external trends – emerging regional standards, social and sustainability offshoots, innovative funding instruments – that may broaden...
Research PaperFive Lessons for Investors From the COVID-19 Crisis
The coronavirus pandemic sparked a surge of volatility across global financial markets. What lessons could investors draw from the COVID-19 crisis? In this paper, we present and discuss empirical evidence supporting five key lessons for investors regarding global investing, managing factors, active management, indexed investing and ESG investing.
MSCI BlogIntegrating ESG in emerging markets and Asia
Previously, we have examined the relationship between ESG characteristics and financial performance in developed markets. In this blog post, we explore whether ESG characteristics have had financially significant effects in emerging markets and Asia.
Research PaperCOVID-19 outbreak highlights gaps in Indian pharma’s quality management
The coronavirus outbreak has applied supply chain shocks to companies relying on China for their raw materials and key supplies. The outbreak has thrown questions of quality management and resilience into sharp relief for Indian pharma companies that could have significant repercussions on the supply of medicines globally. India is the largest provider of generic drugs globally, and generic drugs account for 20% of global exports in terms of volumes. This report explores the...
Research PaperESG investing in emerging markets
Recent studies by MSCI ESG Research LLC have shown historical positive links between environmental, social and governance considerations and corporate financial performance. Because investors might still question whether ESG historically added value in emerging markets, where companies’ consideration of ESG risks is a more recent phenomenon, we compared the performance of four ESG indexes to their MSCI emerging-market parent. Overall, we found that despite emerging-market companies’ tending...
Press ReleaseMSCI Urges Industry to Incorporate ESG Considerations into Investment Processes
Research Paper2020 ESG trends to watch
We highlight five trends we believe will unfold over 2020: Climate change innovators: spotting the sleeping giants; new terms for capital: ready or not, here comes ESG; Re-valuing real estate: investing in the eye of the hurricane; the new human capital paradox: Juggling layoffs and shortages; and keeping score on stakeholder capitalism: looking for accountability in all the new places.
Research PaperWomen on boards: 2019 progress report
Our annual update on women’s representation on corporate boards found a noticeable uptick in 2019: 20.0% of directors were women, up from 17.9% in 2018 and 17.3% in 2017. At the current pace, a 50/50 gender split among global directors might be reached by 2044. We have added other areas of interest including market- and sector-specific corporate gender diversity issues, expertise comparison and an overview of regulatory frameworks around gender diversity.