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MSCI launches tool to support fossil free investment



MSCI, a provider of investment decision support tools, has launched a new set of carbon and fossil fuel metrics to aid investors wanting to reduce their carbon exposure.

The MSCI ESG CarbonMetrics can be used as a tool for divestment screening, portfolio footprinting and engagement with corporatea on climate-related issues. The information provided can support investors in moving their money, as economies transition to low-carbon.

Users of the tool are provided with information on oil and gas reserves, such as potential emissions data along with direct and indirect carbon emissions.

Remy Briand, managing director and head of ESG research, said, “With concerns about carbon stranded assets risk increasing in the investment community, asset owners and managers will need tools designed to measure exposure to carbon risk in their portfolios, including robust quantitative data on companies’ fossil fuel reserves holdings and carbon emissions.”

MSCI has also announced that it is expanding its environmental, social and governance (ESG) research offering. The addition will allow clients to evaluate potential ESG portfolio risk across all three pillars of ESG.

The new tool will provide institutional investors with corporate governance research and analysis on more than 6,000 companies from around the world.

Briand said, “This is one of the first visible benefits of MSCI ESG Research’s acquisition of GMI Ratings and breakthrough for our offering to institutional investors.

“We are excited to bring clients comprehensive, integrated research and analysis on the three E, S and pillars across equity and fixed income securities through the addition of MSCI ESG GovernanceMetrics.”

Photo: OmirOnia via Freeimages  

Further reading:

MSCI seeks to strengthen ESG investment research with acquisition

Church of England and MSCI team up for ethical investment screening

Is it right to invest in an FFFF (Fossil Fuel Free Fund)?

Growing risk around fossil fuels, say 75% of US sustainable investment industry

Investors committing to fossil fuel divestment face challenge in finding alternatives, says study

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