Engaging on climate change

Net-Zero Newsletter

COP27 roundup

“We are very proud to be building the new generation of climate data,” said MSCI’s Chairman and CEO Henry Fernandez, discussing our publicly available Implied Temperature Rise metrics for more than 56,000 equity and fixed income funds at COP27 Finance Day.

•	The search tool, which reflects our commitment to enhance transparency for climate investing, allows anyone to explore the fund’s Implied Temperature Rise and MSCI ESG Fund Rating.
•	Our companion Index Profile Tool makes ESG and climate metrics publicly available and searchable for all MSCI equity and fixed income indexes.
•	We also make Implied Temperature Rise and decarbonization targets publicly available and searchable for more than 2,900 companies.

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Fund Climate Search Tool →

“Many investors are looking at green opportunities, green capex and green patents,” Beth Byington, MSCI’s global head of corporate ESG and climate solutions, told the Sustainable Investment Forum at COP27. “It will become important for companies to disclose against those frameworks and talk about what their business is doing.”

“We need companies’ complete climate data, and we need it for all companies,” stressed Oliver Marchand, head of MSCI’s Climate Risk Center, in emphasizing the importance of the Net-Zero Data Public Utility during a COP27 discussion hosted by U.N. Climate Change.

Post-Sharm

COP27 takeaways | November 21st – Join experts from MSCI to review the core 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.

Engagement

Investors have several mechanisms for company engagement, any of which can potentially be applied to a company’s climate performance, notes MSCI ESG Research, which has published a practical guide for engaging companies on climate change.

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The guide, the latest in our Net-Zero Alignment series, details four key concepts:

○	How investors may wish to prioritize companies for engagement
○	How to identify net-zero leaders and laggards within a portfolio
○	How investors can escalate engagement in response to company behaviour; and
○	How corporate governance may impact climate engagement efforts

Why it matters: “COP27 highlights the importance of engaging on climate change to assess whether portfolio companies align with a 1.5°C pathway,” writes Linda-Eling Lee, MSCI’s global head of ESG and climate research, in a summary of key takeaways from the guide.

Download the guide →

In the news

•	ESG “has nothing to do with political ideology,” MSCI’s Chairman and CEO Henry Fernandez told CNBC in an interview from COP27. “It’s the complete opposite. ESG risks are financial risks.”
•	“A key question investors may be asking is, ‘Do the carbon credits actually remove or avoid emissions?’” MSCI’s Chris Cote tells Investment Week in connection with the announced by U.S. climate envoy John Kerry

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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