Showing 21 - 30 of 310 entries
Research PaperClimate change and climate risk: An index perspective
A transition to a low-carbon economy could reduce demand for carbon-intensive products and services in favor of low-/zero-carbon counterparts. This migration in demand could also alter the risk-return profile — not only of individual companies but of some entire industries. The MSCI Climate Change Index aims to reflect these potential changes, increasing the index weight of companies identified as exposed to a low-carbon transition, while decreasing the weight in companies negatively exposed...
Research PaperFactor allocation to asset allocation
Asset-allocation approaches have evolved from the traditional 60/40 split to the recent adoption of risk, rather than capital, budgeting across asset classes. However, asset-class buckets are not always clear-cut risk and return drivers. We present a factor-based asset-allocation framework to help investors who have begun to look through asset classes to factors — the underlying drivers of risk and returns.
Research PaperUnderstanding MSCI ESG Indexes
This paper explains the different methodologies investors can use to integrate ESG considerations into a benchmark, assess their differences in terms of financial and ESG characteristics and understand potential trade-offs. In the financial industry, benchmarks are used at a strategic level — i.e., as policy benchmarks for defining the eligible investment universe or helping investors determine asset allocations — as well as at an implementation level — i.e., as a performance benchmark for...
Press ReleaseMSCI appoints Simone Bouch as Head of Australia and New Zealand Client Coverage
Research PaperAssessing Control: Measuring And Assessing The Alignment Between Economic Exposure And Voting Power At Controlled Companies
Where the controlling owners of a company have voting power that is disproportionate to their economic exposure, the company’s minority investors face some degree of increased risk. MSCI ESG Research’s ownership model enhances the ability of minority investors to assess ownership-related risks or benefits across two dimensions; it measures the level of control, and illuminates the motivations of the controlling entities. We extend this model by adding a third dimension, by measuring the...
Research PaperWeighing the Evidence: ESG and Equity Returns
Why has there been no clear consensus as to whether ESG has improved returns on a risk-adjusted basis? We find that many of the ESG investing methodologies used in studies were designed to meet social or ethical values and not financial objectives. To understand the link between companies’ ESG characteristics and their financial risk and performance, it is important to evaluate only the studies that use ESG methodologies specifically designed to identify financially relevant issues, such as...
Press ReleaseBloomberg and MSCI expand ESG Fixed Income Index Suite to Canada
Research PaperESG Trends to Watch in 2019
We highlight five of the most pressing challenges and opportunities ESG institutional investors face in 2019: how to deal with the massive amount of plastic waste generated each year; regulations focused on ESG investors; the earlier-than-expected effects of climate change; the big signal revolution and the role of corporate leadership in a world where we’ve seen the disintegration of walls between the executive suite and employees, markets and governments. To read data from other...
Research PaperWomen on Boards Progress Report 2018
MSCI ESG Research has been reporting annually on the state of women’s representation on corporate boards of directors since 2014. As part of this evolving series we have added other areas of interest, relevant to the investment case for gender equality on boards, the differences in compensation regimes between male and female CEOs, and market specific corporate gender diversity issues, such as in Japan, and industry specific issues, such as those in Financials companies. This latest...
Research PaperInvesting in the SDGs
The 17 UN Sustainable Development Goals (SDGs) define the goal posts for delivering global sustainable development. While governments have developed the goals and signed up to their implementation, government action alone will not be enough to achieve them. This joint discussion paper from MSCI and the OECD proposes a framework for discussion around investment options and the potential role of institutional investors in achieving the SDGs and shares a proof-of-concept illustration of a...