Net-Zero Newsletter

Buildup to COP27

Only 16% of the world's listed companies align with the global goal of limiting future warming to 1.5°C above preindustrial levels, the latest edition of MSCI's Net-Zero Tracker shows.

Below are some of the biggest takeaways:

•	Carbon emissions from listed companies would make the planet to 2.9°C warmer by the end of the century, according to the report, which covers data as of Aug. 31, 2022.
•	Companies will burn through their share of the global carbon budget for limiting the rise in temperatures to 1.5°C by Dec. 31, 2026, nearly two months sooner than MSCI ESG Research projected in June, the report estimates.
•	While nearly one-third (32%) of carbon offsets issued to date are tied to planting or preserving forests, significant numbers of such offsets are located in areas that are at medium to high risk of wildfires according to the report, which examines the connection between climate- and nature-related risks.

Why it matters: The climate and nature crises go hand in hand. Climate talks about to start in Egypt will center on accelerating efforts to reduce global greenhouse gas emissions. Nations will meet again nearly three weeks later in Canada, where they hope to hammer out a framework to protect and conserve nature.

Download the MSCI Net-Zero Tracker →

Recommended reading

COP27 is likely to include discussion of the need for investors to implement their climate commitments. Here are some other recent reports from MSCI ESG Research besides the MSCI Net-Zero Tracker to help you get ready:

•	Implementing Net-Zero: A Guide for Asset Owners
•	Net-Zero Alignment Series – Examining the Path to Net-Zero
•	The Road to Science-Based Corporate Net-Zero Target Setting

On the horizon

COP27 takeaways | November 21st – Join experts from MSCI to review the biggest takeaways from the global climate conference and their significance for companies and investors, and to preview the outlook for the COP15 biodiversity conference that will take place in Montreal this December. Register for the virtual session here.

Going where the emissions are

MSCI is introducing a new set of global equity indexes designed to support climate engagement.

•	MSCI Climate Action Indexes comprise companies in every sector that are taking steps to reduce their carbon emissions and reimagine their businesses for a net-zero world.

•	The indexes are designed for investors who seek a consistent framework for reducing financed emissions by backing companies based on their readiness to lead the low-carbon transition compared with peers.

Learn more →

We're on a mission to power better investment decisions. Click below to learn how MSCI can help you navigate to net-zero at every stage.

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