ANNOUNCEMENT: Expert Investor is now PA Europe. Read more.

MSCI makes ESG ratings publicly available

They cover more than 2,800 companies in the ACWI index

In a bid to help investors, companies and other industry stakeholders identify the most financially relevant ESG risks and opportunities, MSCI ESG Research has made its ratings accessible via a search tool on its website.

It said the move was “in recognition of growing momentum and interest from a diverse range of stakeholders in ESG investing”.

From 25 November, the ratings of over 2,800 companies in the MSCI ACWI Index will be available, with plans to extend it to 7,500 constituents of the index in 2020.

The online tool will enable users to view each company’s rating, its rating history, benchmark against peers and key ESG-related issues affecting individual companies, MSCI said.

Methodology

Companies are given a rating from AAA to CCC according to their exposure to ESG risks and how well they manage those risks relative to peers.

MSCI ESG Ratings are constructed using 1,000 data points from company disclosures and alternative data sets across 37 key issues, which are reviewed weekly.

Encourage open discussion

Remy Briand, head of ESG at MSCI, said: “ESG is increasingly being viewed by global investors as a critical factor for building better portfolios.

“The decision to make the MSCI ESG Ratings publicly available is part of a campaign to drive greater transparency in ESG and follows the launch of the MSCI ESG Fund Ratings in July.

“We want to encourage open discussion among investors and companies on how to improve sustainability across the board and hope that making the MSCI ESG Ratings available to all will facilitate these discussions.”

MORE ARTICLES ON

MORE IN

  • Can M&A and buybacks breathe life into UK market?

    Can M&A and buybacks breathe life into UK market?

    Both buybacks and M&A should help realise value in UK shares, boosting prices and giving investors another reason to consider the UK stockmarket Not only does M&A activity appear to be picking up, with a high-profile bid for UK electronics retailer Currys, but the scale of company buybacks continues to accelerate. If it goes well,…

  • Capital Group launches multi-thematic Article 8 funds

    Capital Group launches multi-thematic Article 8 funds

    Capital Group has launched a set of multi-thematic sustainable funds that are available for investors in Europe, writes Christian Mayes. The Capital Group Sustainable Global Opportunities fund (LUX) will invest in global equities, while the Capital Group Sustainable Global Corporate Bond fund (LUX) will target fixed income exposure. The launch also includes a multi-asset offering…

  • Bond funds pull in €29.7bn in January – LSEG

    Bond funds pull in €29.7bn in January – LSEG

    Bond products were the best-selling asset class in January, according to LSEG Lipper’s European Fund Flow report, writes Christian Mayes. The asset class pulled in a net €29.7bn in the month, while Money Market USD grouping was the best-selling Lipper Classification after receiving €11.2bn inflows. Providers of mutual funds pulled in €22.5bn, while passives saw net…

  • Quarter of Article 8 funds at risk of greenwashing – MainStreet Partners

    Quarter of Article 8 funds at risk of greenwashing – MainStreet Partners

    A quarter of all Article 8 funds could be accused of greenwashing based on their sustainability framework and practices, according to MainStreet Partners, writes Christian Mayes The 24% of funds classified as a greenwashing risk by the 2024 ESG Barometer report marks a four percentage point increase from the 20% flagged at the end of…

  • EU green rules could stymie decarbonisation projects – ExxonMobil

    EU green rules could stymie decarbonisation projects – ExxonMobil

    The European Union’s climate regulations may lead to it halting its investments in Europe, ExxonMobil has warned. Speaking to the Financial Times, Karen McKee, president of the product solutions division, said the oil and gas giant had struggled to begin decarbonisation projects in Europe due to the regulatory burden. The result, she added, was that…

  • ICE flags need for Europe to double green investment

    ICE flags need for Europe to double green investment

    Investments to modernise energy and transport must double by the end of the decade to reach 2030 climate targets, the EU has been warned. According to the Institute for Climate Economics (ICE), which has released the European Climate Investment Deficit report, the bloc lacks what it calls a “consistent tool” to ensure monitoring of the…