Investor-focused decisions support tools and services company MSCI announced that it has provided access on its website to its Implied Temperature Rise solution for over 2,900 companies on its website, offering investors with information into the alignment of listed companies with global climate goals.
Remy Briand, Global Head of ESG and Climate at MSCI, said:
“At MSCI, we are staunch advocates of the need for greater transparency and consistent standards in ESG and Climate metrics. Publishing the Implied Temperature Rise data is a natural extension of the transparency work we started in 2019 when MSCI published our ESG Ratings.”
The Implied Temperature tool, which was launched in September this year, converts companies’ current and projected greenhouse gas emissions to an estimated rise in global temperature, taking into consideration the emissions reduction targets of each company.
Covering nearly 10,000 publicly listed companies based on the MSCI ACWI Investable Market Index, the solution assesses the strength of the companies’ climate commitments, comparing projected emissions with the global carbon budget required to meet global climate targets, such as the Intergovernmental Panel on Climate Change’s (IPCC) 2°C goal, or the Paris Agreement goal of limiting warming to 1.5°C.
Through the MSCI website, investors are now able to access companies’ Implied Temperature rise, decarbonization target, and its MSCI Rating.
“As COP26 fast approaches, we are confident this new data adds much-needed clarity to the discussion on the role of capital markets in combating climate change. We are proud to be a leader in driving ESG and Climate transparency, equipping investors with the data they need as they sharpen their focus on the financial impact of climate change, raising awareness of the value of ESG data and ratings, and improving disclosure standards.”