Extended-lister
Showing 1 - 10 of 37 entries
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Research Paper
Deconstructing ESG Ratings Performance: Risk and Return for E, S And G by Time Horizon, Sector and WeightingIndexes ESG Products & Services ESG Indexes ESG Ratings Research
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MSCI Blog
Is ESG Investing a Price Bubble? Probably Not.Inflows into ESG funds have soared in recent years and months, in part motivated by outperformance since the COVID-19 pandemic erupted. But have these inflows become a self-fulfilling prophecy, creating an ESG bubble?
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Research Paper
Aligning Portfolios with the Paris AgreementThe pressure on institutional investors to act on climate change and demonstrate its influence on their decision-making and portfolio construction continues to grow. Increasingly, the focus is on the alignment of client investment strategies with the decarbonization pathways required to deliver the global 1.5oC increase targeted by the Paris Agreement. This alignment may be achieved by overweighting companies on a credible path to decarbonization or offering green solutions, while in contrast...
ESG Climate Solutions Research and Screening ESG Products & Services ESG Indexes
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Research Paper
Combining E, S, and G Scores: An Exploration of Alternative Weighting SchemesHow an overall ESG rating is constructed can significantly impact its usefulness. We tested two approaches: equal weighting and backward optimization. Equally weighting E, S, and G pillar scores across sectors showed less financial significance than the stand-alone G pillar score — that is, without E and S scores — over the 13-year study period. Backward optimization showed greater significance than stand-alone G scores but may underestimate the importance of ESG indicators to financial...
ESG Ratings ESG Indexes ESG Products & Services
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MSCI Blog
ESG in Mexico: At a Fork in the Road?Mexican companies’ ESG risk-mitigation practices have come a long way over the past decade, but there has been some slippage over the past two years. We examine the current status and why investors may want to pay attention.
ESG Indexes ESG Products & Services Emerging Markets Indexes
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MSCI Blog
Is There a Green-to-Brown Premium?As investors evaluate the possible reallocation of capital around the transition toward a low-carbon future, we analyzed the characteristics and performance of “green” versus “brown” companies. Was there evidence of a “green-to-brown premium”?
ESG Products & Services MSCI ESG Indexes ESG Indexes Environmental Indexes GICS MSCI Sector Indexes
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Research Paper
Climate Change and Low-Carbon Risks and Opportunities in ChinaA transition to a low-carbon economy could alter the risk-return profile for many industries. The MSCI Climate Change Indexes aim to be practical tools to assist institutional investors in reflecting these potential changes in their investment strategies. They seek to do so by increasing the index weight for providers of low-carbon solutions and decreasing the weight of companies negatively exposed to such changes while seeking to maintain broad market exposure. In July 2020, MSCI launched...
Indexes ESG Products & Services ESG Climate Solutions ESG Indexes
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MSCI Blog
Corporate Bonds Through a Factor and ESG LensCOVID-19 has had a profound impact on how companies manage cash flows and liquidity. Bond investors face the possibility of increased leverage, rating downgrades and defaults. Can factors and ESG metrics shed light on these risks?
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MSCI Blog
ESG Ratings: How the Weighting Scheme Affected PerformanceOur recent research suggests that environmental and social issues were more industry specific and tended to show up in financial measures over a longer time frame compared to governance issues. How can E, S and G issues be combined?
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MSCI Blog
Which ESG Issues Mattered Most? Defining Event and Erosion RisksVery different ESG issues can be material for different industries. Our research suggests that risks can be divided into two main types: “event” risks and “erosion” risks to companies’ long-term competitiveness. Which ones mattered most for E, S and G?