MSCI - MSCI ESG Research
- Environmental data
- Social data
- Governance data
- Indices/Exchange data
What data do you provide?
MSCI ESG Research provides in-depth research, ratings and analysis of the environmental, social and governance-related business practices of thousands of companies worldwide. Our research is designed to provide critical insights that can help institutional investors identify risks and opportunities that traditional investment research may overlook. We leverage MSCI ESG Ratings for over 8,500 companies (14,00 total issuers including subsidiaries) and more than 680,000 equity and fixed income securities globally to build more than 1,500 ESG indexes1 and to create ESG scores and metrics for approximately 36,000 multi-asset class Mutual Funds and ETFs globally.
MSCI is committed to delivering consistent and comparable ESG metrics at the company, fund and index-level to drive awareness, educate the market and raise ESG disclosure standards. The MSCI ESG Ratings of over 2,800 companies in the MSCI ACWI Index are now accessible via a search tool available on msci.com. We have also made public the MSCI ESG Ratings of 36,000 mutual fund and ETFs and the ESG metrics of all MSCI indexes regulated by the EU.
In addition, MSCI offers over 700 climate change metrics including Climate Value at Risk (Climate VaR), Low Carbon Transition Score, forward-looking indicators, emission data, fossil fuel exposure, and clean tech solutions to facilitate integration of climate change considerations across the investment process.
We aim to help investors integrate ESG across their entire investment process in accordance with our Principles of Sustainable Investing launched earlier this year. Our broad product line supports clients' needs across major asset classes and provides them with a consistent way of looking at risk and performance from front to middle office. We have a flexible business model that enables clients to select the individual products and services they need and integrate to their own investment processes and methodologies.
Where and how do you source your data?
MSCI ESG Research utilizes hundreds of publicly available sources beyond corporate disclosure to inform ESG Ratings. We use technology and AI, combined with our 200+ strong team of ESG analysts, to extract investment-relevant insights from unstructured data.
Our data sources include more than 100 specialized data sets, company disclosures and more than 1,600 media sources. Source material incudes corporate documents such as annual reports and quarterly filings, proxy filings, corporate social responsibility reports, securities filings, websites, and Carbon Disclosure Project responses; governmental data including central bank data and the Comprehensive Environmental Response and Liability Information System (CERCLIS); academic and NGO databases including trade and academic journals; and reports from and interviews with trade groups, industry experts, and non-governmental organizations familiar with the companies' operations and any related controversies. We also use a wide variety of sources to map micro-level risk exposure to companies' geographies of operation and business segments.
Who are the data users?
Over 1,300 institutional investors globally, including some of the largest asset owners and managers, are clients of MSCI ESG Research and Ratings. ESG Ratings and data from MSCI ESG Research LLC are also used in the construction of the more than 1,000 equity and fixed income MSCI ESG Indexes, which are provided by MSCI, Inc.
What are the key attributes that differentiates the data you offer?
The ESG Ratings are not a disclosure-only assessment. We have an objective rules based ESG ratings, with an average 45% of data coming from alternative data sources (not disclosed by the rated entity), utilizing AI tech to extract and verify unstructured data.
While greater transparency of meaningful data is still needed and desired for the most accurate evaluation of a company’s ESG performance, we have found that voluntary reporting on its own is not sufficient for investors to assess companies’ potential ESG risks and opportunities. Alternative datasets are used to corroborate and balance the views presented by voluntary disclosure and provide institutional investors an objective view of a company’s ESG risk profile. As of 2020, MSCI ESG Fund Ratings are now available on FactSet, a leading provider of integrated financial information and analytical applications, offering users transparency on the ESG quality and characteristics of over 36,000 mutual funds and ETFs.
MSCI’s Analytics products offer institutional investors an integrated view of risk and return. Our research-enhanced content and tools help institutional investors understand and control for market, credit, liquidity and counterparty risk across major asset classes, spanning short, medium and long-term time horizons. MSCI's Analytics platform includes MSCI Barra multi-factor models, pricing models and methodologies for performance attribution, MSCI RiskMetrics models for statistical analysis such as VaR, and tools for security analysis, portfolio optimization, back testing and stress testing.