With our holistic MSCI Climate Solutions toolkit we aim to empower financial institutions with the tools necessary to build more climate resilient portfolios, protect assets from the worst effects related to climate change and also help identify new, innovative low carbon investment opportunities.   

We are pleased to introduce the MSCI Climate-Value-at-Risk (Climate VaR) , provided by MSCI ESG Research LLC, which provides forward looking and return-based valuation assessments to measure the potential impact of climate change on company valuations. It provides financial institutions – including investment managers, banks, asset owners and insurers – with the means to identify assets that may be at risk from the worst effects resulting from climate change, while helping to identify innovative low carbon investment opportunities, through security specific modelling.

Contact our ESG Client Service team to learn more.  

MSCI Climate Solutions

Integrating climate solutions into your investment process

MSCI’s Climate Solutions give you access to a wide range of tools and data designed to enable you to address a variety of needs including measuring and reporting on climate risk exposure, implementing low carbon fossil fuel-free strategies, factoring climate change research into risk management processes and engaging companies and external stakeholders .

Climate change – a key risk for institutional investors

A 2019 report by the United Nations estimates that delayed action on climate change could cost investors about $1.2 trillion worldwide during the next 15 years. Delayed action could not only increase policy risk, but may also result in much greater physical climate risk due the increased accumulation of GHG concentrations in our atmosphere.²

Responding and adapting in a timely fashion may mitigate the risk and can also create new investment opportunities. Green revenues generated from the sale of low carbon technologies may help companies offset costs from complying with greenhouse gas (GHG) reduction policies. Under the 2°C scenario, the sum of all green profits are significant – approximately USD 2.1 trillion.²

Examples of Climate-related financial impact

TCFD-alignment

The G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) released recommendations in June 2017, which highlighted the importance of using scenario analysis to assess climate change related impacts within the financial sector.

It calls for the assessment of both the risk and opportunity side of transition and physical climate change impacts, and creates a reporting framework that allows institutions to prepare themselves for upcoming regulations.

MSCI’s TCFD based reporting brief is aimed at institutional investors intending to report on their climate transition risk management processes according to the TCFD recommendations.

Explore TCFD