Showing 41 - 50 of 314 entries
Research PaperJapan: MSCI ESG Ratings Snapshot
Since the launch of the MSCI Japan ESG Select Leaders Index in 2017, 60% of companies in the MSCI Japan Top 500 Index have actively participated in MSCI's Issuer Communication process, indicating their awareness and interest in supporting MSCI ESG Research. However, only 11% have demonstrated a stronger handle of relevant ESG risks that resulted in an MSCI ESG Rating upgrade; most (81%) have maintained their rating. We found Japanese companies in the MSCI Japan Top 500 Index have faced fewer...
Research PaperGender Diversity in Japan: Progress Report 2018
This reports examines progress Japanese companies have made in gender diversity metrics since July 2017, when MSCI launched the MSCI Japan Women Empowerment Index (WIN). Here, we look at whether the economic rationale for increasing female participation in the workforce held true in Japan.
MSCI BlogCan the right benchmark improve your vision?
As interest in ESG investing continues to grow, so does the number of actively managed strategies that integrate environmental, social and governance considerations into their investment processes. However, institutional investors and managers have been benchmarking many of these ESG-tilted strategies against standard market-cap-weighted indexes. While these indexes provide a broad basis for evaluating performance, they lack the ability to provide the insights that might be gained from ESG-focused benchmarks.
Research PaperChina A Shares: MSCI ESG Ratings Overview
In May 2018, MSCI ESG Research completed ESG Rating assessment to 423 constituents of MSCI China A International Index. This two page summary provides an overview of the key findings and the unique characteristics of the China A peer set. The full report, available to MSCI ESG Research clients only, explores the methodology solutions applied in the analysis.
Research PaperFoundations of ESG Investing – Part 4: Integrating ESG into Factor Strategies and Active Portfolios
How can ESG characteristics be integrated consistently across factor-based and active equity allocations? In Part 4 of the Foundations of ESG Investing paper, we discuss two approaches to applying ESG ratings to factor-based allocations – a one-step and a two-step approach – asking which has done a better job at combining the underlying strategy with ESG while maintaining exposure to target factors. We then investigate overlaying ESG ratings and ESG momentum on the historical holdings of...
MSCI BlogCanaries in the data mine: GDPR and privacy regulation
On Tuesday May 22, Facebook CEO Mark Zuckerberg apologized to EU-based Facebook users for the firm’s failure to sufficiently combat “fake news.” As the EU’s data protection regulation, known as the General Data Protection Regulation (GDPR), kicks in on May 25, Facebook isn’t alone in facing compliance challenges.
Research PaperUS Department Of Labor Guidance On ESG Investing Emphasizes Economic Relevance
Investors are still digesting the U.S. Department of Labor’s new guidance on environmental, social and governance (ESG) investing. Our initial take: We think the guidance supports consideration of the financial merits of ESG investing.
Research PaperFoundations of ESG Investing – Part 3: Integrating ESG into Passive Institutional Portfolios
According to recent surveys, asset owners’ have shifted their main focus to ESG’s financial benefits, as opposed to social benefits. In the third part of this paper, we discuss how ESG can be integrated into passive allocations using MSCI ESG Ratings, which provided better risk-adjusted returns from August 2010 to December 2017 than the MSCI ACWI Index. We used existing best-in-class selection-based index methodologies (the MSCI ESG Leaders Index) for the creation of hypothetical global and...
Research PaperEnhancing Economic Value With ESG
In this paper we apply an ESG filter to a highly selective universe of 100 companies that have already been screened for value creation as measured by ROIC, economic spread, margins and asset turnover ratio. We found that those with higher ESG Ratings had higher average ROIC and were valued at a premium compared to companies with lower ESG ratings.
Press ReleaseRecord Year of Growth for MSCI ESG Research