Investment data and research provider MSCI announced today an agreement to acquire Trove Research, a specialist data, analysis and advisory firm focused on corporate climate action, carbon markets and the energy transition.
The move marks MSCI’s entry into the rapidly evolving carbon market ecosystem, which includes banks, exchanges and developers. In addition to supporting MSCI’s goal to offer expanded climate solutions, the company said that the acquisition will enable it to offer clients with insights into companies’ transition plans, and the outlook for carbon credit pricing, as well as to increase transparency into carbon credit quality,
MSCI Chairman and CEO Henry Fernandez said:
“The voluntary carbon market has a key role to play in helping the world achieve net-zero emissions while helping our clients navigate the transition. Trove Research offers unique data and insights on how the market works and what can be done to improve it. By combining these tools with our integrated franchise, diverse client base, and wide range of capabilities, MSCI will strengthen its position as a leading provider of climate-related investment solutions.”
The acquisition comes as demand for carbon offset projects and related credits is expected to increase significantly over the next several years, as companies and businesses increasingly launch net zero ambitions, and turn to offsets as a bridge to their own absolute emissions reduction efforts, or to balance difficult to avoid emissions. The unregulated and rapidly growing market faces a series of challenges, however, with market participants unable to differentiate between high and low quality projects with insufficient or inconsistent data to assess the effectiveness of the projects.
Founded in 2015 to provide insights into sustainable asset investing, London-based Trove Research has focused since 2020 exclusively on tracking corporate climate commitments and all aspects of the voluntary carbon credit market. The company provides data and intelligence to users including asset owners and fund managers looking to understand companies’ climate commitments, companies exploring the purchase of carbon credits, and developers and investors creating projects on the ground and raising financing through the sale of carbon credits. The company has grown to more than 50 staff, with offices across 3 continents.
Guy Turner, Chief Executive Officer, Trove Research, said:
“Trove’s mission has always been to use data and analysis to help facilitate better investment decisions. Combining Trove’s deep carbon market data and analytics with the scale and breadth of MSCI’s sustainability and financial data will allow us to create truly world-leading climate solutions and bring real value to clients. I look forward to what we will achieve together.”