Sustainable Finance Intro

Sustainable Finance looks set to become one of the biggest regulatory revolutions over the coming years. Additionally, many industry stakeholders are developing different standards and frameworks to address ESG, sustainability risk and climate integration and disclosure.

MSCI is committed to furthering the development of ESG, sustainability risk and climate integration and disclosure, regulation and standards, including the EU Sustainable Finance package. This page summarizes our research, tools and resources. We continually update this information, please check back regularly. Any questions, please contact us.


Sustainable Finance Video

Principles of Sustainable Investing

In January 2020, we published The MSCI Principles of Sustainable Investing urging all investors globally to integrate ESG considerations into their investment processes.

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Our Approach

With over 40 years of experience in objectively measuring and modelling ESG performance, MSCI has been at the forefront of providing data, research and other tools to help enable ESG and climate integration across the entire investment process. Learn more about our approach to ESG and climate research and transparency which underpins our sustainable finance work.

MSCI ESG Research

  • First ESG provider to assess companies based on industry materiality, dating back to 1999. Only dataset with live history (12+ years) demonstrating economic relevance3
  • Objective rules based ESG ratings, with an average 45% of data,4 coming from alternative data sources, utilizing AI tech to extract and verify unstructured data
  • First ESG ratings provider to measure and embed companies’ ESG risk exposure5

 

MSCI Inc.

  • MSCI has been calculating ESG indexes for more than 30 years beginning with the launch of the Domini 400 Social Index (now the MSCI KLD 400 Social Index) in 1990.Learn more
  • MSCI now calculates over 1,500 equity and fixed income ESG Indexes designed to help institutional investors more effectively benchmark ESG investment performance and manage, measure and report on ESG mandates, including climate. MSCI also calculates customized ESG indexes taking into account specific client ESG considerations.  
  • MSCI offers a range of climate indexes for investors who seek to incorporate climate risks and opportunities into their investment process. Learn more.
  • With the new voluntary climate benchmark regime in the EU, MSCI launched the first provisional EU Paris-aligned benchmarks (PAB) and EU Climate Transition benchmarks (CTB) in November 2019 based on the TEG Final Report issued in September 2019. In October 2020, MSCI launched a series of Climate Paris Aligned Indexes which are designed to exceed the minimum standards of the Paris Aligned Benchmarks in the EU Benchmark Regulation (BMR). Learn more2

MSCI strives to bring greater ESG and climate transparency to financial markets and support the evolving complex needs of the investment community. Our transparency tools showcase MSCI ESG and climate metrics for tens of thousands of funds, companies and indexes, helping to drive awareness, educate the market and raise ESG disclosure standards.

 

The MSCI ESG Research and equity and fixed income research teams regularly produce ESG and climate research papers, blogs and interactive insights to help investors explore key ESG themes, risks and opportunities. For More information about MSCI Climate and ESG research can be found at MSCI Research.

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.

MSCI’s Climate Risk Center, based in Zurich, works with leading academic and research institutions around the world to advance the use of climate science for financial risk analysis. 

EU Sustainable Finance Package

EU Sustainable Finance Package

The European Union is pursuing the most ambitious sustainable finance package globally. MSCI is actively involved in several Committees providing its expertise to the EU Commission.

Guides and Mappings for ESG Labels and Frameworks


Guides and Mappings for ESG Labels and Frameworks

MSCI continues to map and expand MSCI’s offerings to keep up with various standards around the world. For more information about the guides and mappings below available to clients, please contact us.

Sustainable Finance Consultation Responses

Sustainable Finance Consultation Responses

MSCI’s team of sustainable finance experts have been actively monitoring and engaging in ESG, sustainability risk and climate consultations, globally. Please find below a summary of MSCI’s responses to sustainable finance related consultation papers.

MSCI responses to consultations pertaining to EU Benchmark Regulation (including EU Climate Benchmarks and ESG Benchmarks Disclosures) can be found at https://www.msci.com/index-regulation in the “MSCI Responses to Regulatory Consultations Section”.

 

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* Climate Data and Metrics, Climate Risk Reporting and Scenario Analysis are provided by MSCI ESG Research LLC. MSCI ESG Indexes and Analytics utilize information from, but are not provided by, MSCI ESG Research LLC. MSCI Equity Indexes are products of MSCI Inc. and are administered by MSCI Limited.

 

MSCI ESG Research LLC. is a Registered Investment Adviser under the Investment Adviser Act of 1940. The most recent SEC Form ADV filing, including Form ADV Part 2A, is available on the U.S. SEC’s website at www.adviserinfo.sec.gov.

MIFID2/MIFIR notice: MSCI ESG Research LLC does not distribute or act as an intermediary for financial instruments or structured deposits, nor does it deal on its own account, provide execution services for others or manage client accounts. No MSCI ESG Research product or service supports, promotes or is intended to support or promote any such activity. MSCI ESG Research is an independent provider of ESG data, reports and ratings based on published methodologies and available to clients on a subscription basis.  We do not provide custom or one-off ratings or recommendations of securities or other financial instruments upon request.

ESG ADV 2A
ESG ADV 2B (brochure supplement)