MSCI Launches Platform Enabling Institutional Investors to Manage and Monitor Climate Risks and Goals
Investor-focused decisions support tools and services company MSCI announced today the launch of Climate Lab, a new platform aimed at enabling institutional investors to manage and monitor climate risks and investment goals across their portfolios.
The new platform combines MSCI’s climate data and financial modeling capabilities across multiple asset classes, in order to assess trends, identify climate leaders and laggards, and run scenario analysis from the enterprise to the issuer level. Key features include the ability to access data on climate data across asset classes, such as scope 1-3 emissions, temperature alignment, company net-zero targets, and scenario analysis, to identify climate risk exposure at the enterprise level, and to assess and manage portfolio alignment with the Paris Agreement.
Remy Briand, Global Head of ESG and Climate, MSCI, said:
“The decisions of the financial industry will influence the economic transition towards the net-zero revolution and will permanently change how we allocate capital and manage investment strategies. However, net-zero strategies and commitments will bring a new set of challenges, not just in the shifting allocation of capital, but in garnering insight on portfolios from the data needed to support the investment process and in the business-wide transition to net-zero.”
Climate Lab will include the ability to aggregate MSCI’s recently launched Implied Temperature Rise solution at the portfolio level, enabling investors to assess alignment with global temperature targets. The platform will also allow investors to compare companies’ carbon budget to their projected emissions, helping identify companies for engagement initiatives.
Jorge Mina, Head of Analytics, MSCI, said:
“Many of the world’s largest institutions are repositioning their portfolios to meet climate targets, and up until now the technology has not been in place to allow for a swift, scalable and effective understanding and management of climate exposure across all funds and portfolios. At MSCI, we are focused on turning large datasets into actionable insights that our clients can apply across their portfolios. On average, we process 70 million positions and one trillion asset valuations daily. Climate Lab brings together the climate, analytical and technological capabilities of MSCI for clients to immediately start monitoring and managing their own net-zero transitions.”