New Reports Assess a Portfolio’s Exposure to ESG Risk Factors
MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools, today announced the launch of MSCI ESG Portfolio Analytics, a new reporting tool for fund managers and pension plans who want to assess the ESG characteristics and risk profile of their equity portfolios. MSCI ESG Portfolio Analytics is the first reporting tool to provide an objective, standardized framework for understanding portfolio ESG risk relative to MSCI’s market leading global equity and ESG indices.
“Demand for ESG integration is growing, but it remains a challenge for many asset owners and managers to assess how effectively ESG risks are taken into account,” said Remy Briand, Managing Director and Global Head of Index and ESG Research. “MSCI ESG Portfolio Analytics provides a way for institutional investors to report and engage on ESG risks as it offers a new standard for measuring and benchmarking the ESG characteristics of portfolios.”
MSCI ESG Portfolio Analytics reports offer a data-driven visual analysis of a portfolio’s ESG characteristics. Important product features include portfolio and index benchmark ESG scores; a portfolio holdings breakdown analysis with the lowest and highest rated positions; and an assessment of key ESG issues such as carbon emissions, water stress, and human capital development.
Pension plans and fund managers can use MSCI ESG Portfolio Analytics to satisfy reporting needs, including those of the UN Principles for Responsible Investment (PRI); conduct internal ESG risk assessment; and identify targets for company engagement. Asset owners can also use the reports to enhance the manager selection process and evaluate how managers address ESG risks.
MSCI ESG Portfolio Analytics is currently available from MSCI ESG Research as a managed service. MSCI plans to make the product available through its Barra Portfolio Manager and BarraOne platforms later this year.