Net-Zero Newsletter

🎄 Hello, readers. MSCI's Net-Zero Newsletter will be taking a break for the holidays, with plans to return in the new year. If you received this email from a friend, you can sign up here to receive the Net-Zero Newsletter in your inbox.

ESG and Climate Trends to Watch for 2023

Russia's war in Ukraine may be driving demand for fossil fuels but don't rule out renewables, say MSCI's climate researchers, who note they'll be keeping their eyes on spending by some of the biggest utilities in the year ahead. It's among a series of trends in climate and biodiversity that MSCI ESG Research will be watching in 2023, including:

•

Whether companies exposed to the effects of deforestation can better monitor their supply chains as they position themselves to preserve access to key markets.

–	Less than 12% of listed food-products companies and 18.2% of food retailers had disclosed a deforestation policy, as of Oct. 12.

•

Whether companies will mine secondary materials from electronic waste.

–	Nearly three quarters (72%) of listed makers of technology hardware or household durables did not disclose measures for e-waste collection or recycling, as of Sept. 27.

•

Whether investor opposition to corporate climate strategies will continue to grow.

–	The average share of proxy votes against such strategies rose to 9.6% this year, from 3.1% in 2021.

•

Whether emerging-market banks will feel the pressure from regulators and investors to disclose financed emissions.

–	Among state-owned banks accounting for nearly half (45%) of lending in China, none had reported loan emissions, as of Oct. 13.

Why it matters: "Taken together, the trends examine how ESG and climate data can equip companies and investors to surface risks and opportunities that could impact their strategies," writes Linda-Eling Lee, MSCI's global head of ESG and climate research.

Download MSCI's ESG & Climate Trends to Watch for 2023 →

You're invited

MSCI's ESG and Climate Trends to Watch in 2023 | Join us on January 26th at 4 pm GMT/11 am ET to explore the trends that our research team will be watching in the new year. The event will be hosted virtually but advance registration is required. Register here.

Risky business?

Clean-technology companies that may be eligible for incentives or tax credits under the U.S. Inflation Reduction Act could be falling short on social and governance risks, an analysis by MSCI ESG Research finds.

•	Electric-vehicle makers averaged 2.2 (out of 10) on the social pillar of ESG scores, suggesting weak labor and product-safety management, according to the analysis, which examined 58 listed companies with at least half their revenues exposed to clean technology and some U.S.-based earnings, as of Oct. 26.
•	Twenty-five makers of wind turbine and EV charging equipment scored from 2.5 to 7.3 (out of 10) on the governance pillar, highlighting wide variation in the capacity of such companies to avoid potential management mishaps, the analysis finds.

Read the analysis →

Roundup

Investors are paying a premium for office buildings in Paris and London that have sustainability ratings such as LEED, an analysis by MSCI Research shows.

•	The premium in Europe's two largest property markets stands at 25% and 35%, respectively, according to the analysis, which examined data as of November.

Carbon emissions from energy companies are migrating from U.S. public markets.

•	A decline in energy IPOs and the sector's share of delistings highlight the need for transparency about emissions at both listed and unlisted companies, an analysis by MSCI Research suggests.

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

Explore our Climate and
Net-Zero Solutions →

You can reply here with any feedback or suggestions and share this link to subscribe.

This free email subscription is separate from and does not impact any subscriptions to the MSCI Index Announcement Service and the monthly Barra Releases Notices or News and Re-Release notices.

If you have any questions, please let us know at MarketingTeam@msci.com

Attention: Marketing, MSCI Inc. 7 World Trade Center, 250 Greenwich Street, New York NY 10007, United States

Legal

Privacy Notice