MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes, ratings and analytics, today announced the next step toward advancing ESG integration into the investment management process by delivering ESG solutions across its suite of risk and portfolio analytics systems.
MSCI’s multi-asset class risk and performance analytics clients can integrate ESG ratings, data1 and indexes into security selection, portfolio construction, stress testing, and risk and performance attribution analysis.
Jorge Mina, managing director and head of analytics at MSCI said, “Asset owners are increasingly demanding systematic integration of ESG data into their investment process. We are pleased to offer the full suite of our MSCI ESG Ratings and tools to help our clients incorporate ESG analysis into the risk management process, and construct ESG and climate-integrated portfolios.”
Remy Briand, managing director and head of ESG at MSCI said, “The inclusion of MSCI ESG Ratings and MSCI ESG Indexes into our portfolio and risk management systems represents the next step in the evolution of MSCI’s support of ESG investing. Conversations with our clients are shifting from why ESG matters to how to implement ESG to make better informed investment decisions.”
MSCI ESG Analytics toolkit key features include:
- Ability to measure, monitor, and manage ESG exposures on over 650,000 equity and fixed income securities and over 8 million active equity and bond derivatives
- Access to ESG Ratings of 13,000 issuers (including subsidiaries) across the full suite of MSCI risk management and portfolio construction tools to understand the most economically significant ESG risks to a company relative to its industry peers
- Access to MSCI’s full suite of 900 equity and fixed income ESG indexes for performance benchmarking, optimization and reporting
- The addition of ESG in MSCI’s Barra European Equity Factor Model for direct attribution of risk and return in European markets
- Access to climate change assessment data for automated carbon footprinting of funds, indexes, and portfolios; optimization of portfolios to reduce carbon exposures while limiting tracking error; and the development of climate scenario analysis and stress tests.
MSCI ESG Research, the provider of MSCI ESG Ratings, works with 46 of the top 50 asset managers globally.
Over $108 billion in institutional, retail and exchange-traded fund assets are currently benchmarked
to MSCI ESG Indexes – growing 84% from Q1 2017.