Climate Data & Metrics

For more than 20 years, MSCI ESG Research has worked with institutional investors to incorporate climate change considerations in their investment process by providing an extensive view of climate change risks and opportunities across multiple dimensions:

Deep and broad company data

State of the art climate models

Insightful tools

Coverage: more than 9,600 companies including large, mid and small cap developed and emerging market equities, as well as Investment Grade, high yield and emerging market fixed income issuers*; 198 countries for select / relevant metrics.

Analytical framework for a net-zero journey

MSCI’s Climate Analytical framework investigates 4 dimensions: minimize transition risk, capture green opportunities, minimize physical risk, and ensure alignment with 1.5° pathways. Within each dimension, there are several data metrics and models that can support this analysis, starting from building blocks like emissions data, revenue exposure to sophisticated scenario analysis models.

All climate metrics overview

Climate Value-at-Risk

This risk measurement helps investors to assess future costs related to climate change and understand what those future costs could mean towards the current valuation of securities. The premise of Climate VaR is to aggregate costs related to specific climate risks over the next 15 years and calculate what these costs might signify about financial performance into the foreseeable future.

Implied Temperature Rise

Implied Temperature Rise from MSCI ESG Research is designed to show the temperature alignment of companies and portfolios with global climate targets. With this forward-looking estimate for company or portfolio alignment, investors can use Implied Temperature Rise to set decarbonization targets and support engagement on climate risk. The measure, which is also designed to support reporting for the Task Force on Climate-related Financial Disclosures (TCFD), is part of a platform of analytical tools from MSCI ESG Research that institutional investors trust to navigate the transition to net-zero at every stage.

Low Carbon Transition Score

A company level score designed to identify potential leaders and laggards by holistically measuring companies’ exposure to and management of risks and opportunities related to the low carbon transition. Companies with higher Low Carbon Transition score are more aligned with the Low Carbon Transition compared to the companies with lower scores. (Score: 0-10)

Emissions

This dataset represents a company's Scope 1, Scope 2 and Scope 3 greenhouse gas emissions as reported (if available) or estimated by our proprietary estimation model. Scope 1 emissions are those from sources owned or controlled by the company, typically direct combustion of fuel as in a furnace or vehicle. Scope 2 emissions are those caused by the generation of electricity purchased by the company. Scope 3 emissions include an array of indirect emissions resulting from activities such as business travel, distribution of products by third parties, and downstream use of a company's products (i.e. by customers).

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Fossil Fuel (incl Power) Screens

This dataset provides quantitative data on reserves by fossil fuel type and revenue screens (thermal coal, conventional and unconventional oil & gas), as well as granular power generation data.

Sovereign

Close to 30 data points for sovereign issuers to highlight a country’s exposure to transition risk and physical and economic vulnerability related to climate change. The data is collected from sources such as the United Nations (UN), World Bank, Central Intelligence Agency (CIA), etc. It also includes a number of carbon emissions factors (CO2 and GHG), their corresponding intensities and trend calculation that can be used to calculate the carbon footprint of sovereign investments.

Climate Risk Management

Assessment of corporate issuers’ climate change exposure and management practices to identify leaders and laggards when it comes to preparedness for transition to a low carbon economy. The risk exposure assessment is intended to assess the extent to which a company is exposed to a material issue (or Key Issue). Under risk management assessment, we assess the strength of a company’s strategy and otherforward looking measures to mitigate the risk.

Current Green Revenues

The recent-year percentage of revenue, or maximum estimated percent, a company has derived from products or services related to alternative energy, energy efficiency, green building, pollution prevention, sustainable water or sustainable agriculture.

Low Carbon Patent Analysis

Recently published patent databases allow an evidence-based, behind-the-scenes view into the strategic research and development investment of companies. Climate VaR’s model currently covers 65 million unique patents that have been granted from 40 patent authorities worldwide. In this dataset, patents referring to the Low Carbon technologies have been segregated, assigned a quality scores and mapped to companies.

Contact our ESG Client Service team to learn more.

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