Understanding MSCI’s Climate Metrics
Jan 10, 2023
With no “one fits all” solution, to help investors identify the most suitable climate metrics, we take an in-depth look at MSCI ESG Research’s climate metrics in terms of what they measure, how they are calculated and their potential use cases.
Climate metrics may differ substantially in terms of their scope and objectives, making it imperative that market participants understand which ones can help in meeting strategy-specific goals and requirements. Investors may also need to consider different metrics at the different stages of their climate-investment process, adding to the challenges. This paper provides a toolkit which explains the key criteria investors could apply in identifying suitable climate metrics.
The climate-investment process
Climate Data & Metrics
We offer over 900 climate change metrics including Climate VaR, Implied Temperature Rise, Low Carbon Transition Score, forward looking indicators, emission data, fossil fuel exposure, clean tech solutions to facilitate integration across the investment process.Explore more
TCFD-Aligned Climate Risk Reporting
An increasing number of institutions have started to disclose climate-related risks and opportunities in alignment with TCFD recommendations. MSCI ESG Research data and metrics can be used at the portfolio, sector and security level to support the TCFD reporting framework.Learn more
Implementing Net-Zero: A Guide for Asset Owners
Pension funds, sovereign-wealth funds, insurance companies and other institutional asset owners are pledging to align their portfolios with the goal of a net-zero economy. This guide from MSCI ESG Research outlines concrete steps for translating climate commitments into action.Read more
Climate Metrics Series Part 1: Measuring climate change – what metrics should you use?
Choosing the most suitable climate metric for specific investment goals can be challenging. Explore part 1 in our climate metrics series to understand the options.Explore more
Climate Metrics Series Part 2: Ranking sectors by carbon footprint
Understanding the carbon footprint of various sectors can help investors minimize their portfolios' greenhouse gas (GHG) emissions. Explore part 2 in our climate metrics series on carbon footprints by sector.Learn more
Climate Metrics Series Part 3: Exploring the effect of climate change on investments
Natural disasters, policy changes, and technological shifts related to climate change could impact your portfolios. But to what extent? Explore the answer in the final part in our climate metrics series.Read more