EU Intro copy

The EU Sustainable Finance package aims to support the transition to a low-carbon, more resource-efficient and sustainable economy. MSCI is actively involved in, and providing its expertise to, several EU expert committees. To learn more about the package and MSCI’s involvement, download our Sustainable Finance FAQ

  • MSCI has been a member of the EU Commission’s 35 member Technical Expert Group and focused on requirements for the EU climate benchmarks and ESG benchmarks disclosures in the TEG Final Report in September 2019. The TEG expired in September 2020
  • MSCI is supporting the Ad-hoc Working Group for the EU Ecolabel which is helping to define the standards for an EU Ecolabel for financial services
  • MSCI is a member of the EFRAG’s European Lab Project Task Force which is helping to define enhancements to the EU Non-Financial Reporting Directive (NFRD)

EU Intro

EU Sustainable Finance Package Proposals

MSCI and MSCI ESG Research have been actively monitoring, engaging and complying with the legislative proposals outlined in the EU’s sustainable finance action plan.

February 4, 2021:The European Supervisory Authorities (ESAs) announced today their final report on draft regulatory technical standards for sustainability-related disclosures for the financial service industry. MSCI supports the ESAs’ approach in considering industry feedback from the consultation on the draft technical standards. With more certainty, the industry can now take significant steps forward in terms of addressing the disclosure requirements.

MSCI also supports the aims of the Commission and ESAs’ aim of driving capital towards more sustainable investments, and we are committed to providing solutions that underpin our mission to help the world’s investors meet their ESG and climate disclosure and reporting requirements. MSCI ESG Research will introduce our EU Sustainable Finance Module later this month (February 2021) to help our clients align and comply with these requirements. To receive details of our forthcoming announcement, sign up to the MSCI Sustainable Finance newsletter, or to learn more about the module, please contact ESG Client Service.

 

  • Climate Benchmarks


    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 more

    MSCI intends to open a consultation in the coming months on a potential transition of the MSCI Climate Change Index to include the EU requirements to qualify as a EU Climate Transition Benchmark (CTB).
  • ESG Benchmarks Disclosures


    In May, 2020, MSCI published ESG metrics required only for ESG indexes under the EU benchmark regulation, for all MSCI regulated equity and blended indexes on the Index Profile search tool. Fixed income indexes were included in July 2020. More information (including about the required methodology disclosures) can be found on the index regulation page of our website.
  • Sustainable Finance Disclosure Regulation (SFDR)


    Since July 2020, MSCI ESG Research made available to clients a current mapping of MSCI ESG data to the Annex 1 Principal Adverse Sustainability Impact data requirements in the Joint ESAs Consultation on ESG Disclosures. However, this mapping and relevant datapoints are just an initial resource we are making available to clients to support them in addressing the SFDR disclosure requirements. MSCI ESG Research is actively building out new solutions to help clients seeking to meet their disclosure requirements.
    • Adverse Impact Indicators: MSCI ESG Research’s approach to developing a dataset for the adverse impact indicators is to follow the same hierarchy for sourcing this data as is presented in the draft RTS of the Joint Consultation Paper on ESG Disclosures that is, to:
      1. Collect readily available data: MSCI ESG Research searches the company disclosures and reporting of global companies for adverse impact information.
      2. Engage via company outreach: Leveraging its extensive contact database and Issuer Communications Portal, MSCI ESG Research presents companies with the findings of our disclosure search and directly encourages the public disclosure of adverse impact information.
      3. Fill gaps: Anticipating that there will be significant gaps in company disclosure, MSCI ESG Research draws on its extensive suite of ESG data to offer credible, equivalent indicators for assessing adverse sustainability impacts that are not reliant on company disclosure.

  • Proposed Article 8/9 Framework based on MSCI Client Feedback:
    MSCI Index Research team has put together a proposed Article 8/9 Framework following engagement with clients over the past few months. Our aim is to provide a generic framework, based on client feedback, setting out an approach to help organize indexes in the context of Article 8 and Article 9 SFDR designations. Download the proposed framework.

    We believe this robust approach will save our clients significant time and resources and help to prepare them for the upcoming disclosure deadlines.

EU Sustainable Finance Related cards