MSCI has launched the “first” research and ratings product to provide an in-depth, integrated look at the three components of ESG – environmental, social and governance – investing.
The index and analytics provider says its MSCI ESG Ratings product represents an evolution in ESG research.
It is aimed at institutional investors, who MSCI says are increasingly integrating ESG into their investment processors.
As well as ESG integration, the product focuses on factors such as manager reporting, engagement and portfolio monitoring.
It will assess the social and environmental risks and opportunities that vary across industries, whilst also evaluating governance risks across different capital markets.
The product also aims to improve the ability of the front office to integrate ESG factors into existing investment processes, and this includes providing a large bank of ESG data points. There are 96 governance risk metrics across board, pay, ownership and control, and accounting factors. There are 65,000 individual director profiles that look at their financial, industry and risk management expertise.
The product will also offer details of companies’ key ESG risks and daily monitoring of ESG controversies and governance events that could alter a company’s ESG risk profile.
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