Moody’s and MSCI Announce a Strategic Partnership to Enhance Transparency and Deliver Data-Driven Risk Solutions
Moody's (NYSE:MCO) and MSCI Inc. (NYSE:MSCI) have announced a strategic partnership to enhance transparency and provide data-driven risk solutions focusing on ESG and sustainability. The partnership will see Moody's utilizing MSCI's industry-leading ESG ratings and sustainability data, while MSCI gains access to Moody's Orbis database, the world's largest source of firmographic information. This collaboration aims to leverage the strengths of both companies, offering enhanced ESG content and risk assessment solutions to their customers across banking, insurance, and corporate sectors. Financial details of the agreement were not disclosed.
- Moody's will leverage MSCI’s industry-leading ESG ratings and sustainability data.
- MSCI gains access to Moody's Orbis database, extending its private company ESG coverage.
- The partnership aims to provide better ESG transparency and data-driven risk solutions.
- Moody's customers will benefit from MSCI’s renowned ESG content.
- MSCI will enhance its solutions across client segments and asset classes through this agreement.
- None.
The strategic partnership between Moody’s and MSCI signifies an important move towards integrating ESG data with firmographic and credit data. This collaboration is likely to enhance the analytical capabilities of both companies, providing more comprehensive risk assessment tools to a broad range of clients, particularly in the banking, insurance and corporate sectors. Combining Moody’s robust credit data with MSCI’s ESG ratings could lead to more precise evaluations of investment risks and opportunities, especially those related to sustainability.
This partnership could be particularly beneficial for investors focused on ESG criteria, as it offers a more granular view of private company data. It also allows for improved transparency in the private credit market, a sector that has been increasingly under the spotlight. The downside, however, could be the potential overlap in services, which may lead to complexities in integration. Nevertheless, in the long-term, this synergy is expected to deliver enhanced risk solutions that align with the growing demand for sustainable investments.
The integration of Moody’s Orbis database with MSCI’s private company ESG coverage provides a significant advancement in data-driven decision-making processes. For stakeholders, this partnership means better and more reliable data to base their decisions on, enhancing overall market transparency. As ESG considerations become more critical in investment decisions, the combined expertise of Moody’s and MSCI can provide more nuanced insights into how companies manage ESG risks and opportunities.
While the financial terms of the deal were not disclosed, it is clear that the strategic benefits outweigh the immediate financial disclosures. The move to enhance private company coverage can cater to the increasing interest in private equity and debt markets, offering investors more robust tools for evaluating these assets. Short-term benefits include improved data access for Moody’s and MSCI’s existing customers, while long-term advantages revolve around setting new standards in ESG risk assessment.
This partnership emphasizes the growing importance of ESG metrics in the financial sector. By leveraging MSCI’s industry-leading ESG ratings, Moody’s can provide its clients with more detailed and relevant sustainability data. This is particularly useful in a market increasingly driven by ESG considerations. The collaboration also showcases a forward-thinking approach, as it aims to address the data gaps in private company ESG coverage.
For retail investors, this could translate into more informed investment decisions and better alignment with personal values concerning sustainability. However, it's important to observe how both companies implement this integration and communicate it to their customer base to ensure clarity and efficiency. The long-term impact will depend on how these enhanced data solutions influence investor behavior and market trends in ESG investing.
![(Graphic: Business Wire)](https://mms.businesswire.com/media/20240701003299/en/2174273/4/MSCI_Moodys_Partnership_FINAL.jpg)
(Graphic: Business Wire)
Moody’s will leverage MSCI’s sustainability data and models, which are used by the world’s largest asset managers and asset owners. The agreement, entered into last week, includes MSCI’s industry-leading ESG ratings and content, which measure a company’s management of financially relevant ESG risks and opportunities. With access to MSCI data, Moody’s intends over time to migrate its existing ESG data and scores to offering MSCI’s sustainability content through a range of solutions serving Moody’s customers in the banking, insurance and corporate sectors.
MSCI will gain access to Moody’s Orbis database, the world’s leading source of firmographic information with data on more than 500 million entities, to extend its private company ESG coverage. In addition, MSCI and Moody’s will explore solutions that leverage Moody’s private company data and credit scoring models to provide greater insight into the private credit market.
“Moody’s is excited to partner with MSCI, a leader in solutions for the global investment community and a pioneer in ESG and sustainability,” said Rob Fauber, President and CEO of Moody’s. “This is a real win-win, as Moody’s customers gain access to MSCI’s renowned ESG content and MSCI customers will gain access to Moody’s world-class risk assessment expertise, data and insights.”
“We are exceptionally pleased to partner with Moody’s to offer MSCI’s ESG and sustainability data to Moody’s broad base of global customers,” said Henry A. Fernandez, Chairman and CEO of MSCI. “Sustainability remains one of the most important trends reshaping the global investment landscape, and the shift to private assets is another. This agreement will help MSCI expand our private company ESG coverage and deliver enhanced solutions across client segments and asset classes.”
The partnership does not impact Moody’s Ratings, the credit rating agency, which will continue to provide transparency into the material impacts of ESG factors on its credit ratings through its proprietary Credit Impact Scores and Issuer Profile Scores. Moody’s Ratings will also continue to offer its sustainable finance offerings, including Second Party Opinions and Net Zero Assessments. In addition, Moody’s remains committed to providing its market-leading climate solutions to customers.
The financial terms of the deal were not disclosed.
About Moody’s Corporation
In a world shaped by increasingly interconnected risks, Moody’s (NYSE: MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 15,000 across more than 40 countries, Moody’s gives customers the comprehensive perspective needed to act with confidence and thrive. Learn more at moodys.com.
About MSCI
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com.
“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements. Stockholders and investors are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements and other information in this document are made as of the date hereof, and Moody’s undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Moody’s is identifying certain factors that could cause actual results to differ, perhaps materially, from those indicated by these forward-looking statements. These factors, risks and uncertainties include, but are not limited to: the impact of general economic conditions (including significant government debt and deficit levels, and inflation and related monetary policy actions by governments in response to inflation) on worldwide credit markets and on economic activity, including on the volume of mergers and acquisitions, and their effects on the volume of debt and other securities issued in domestic and/or global capital markets; the uncertain effectiveness and possible collateral consequences of
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties and other factors that may cause MSCI's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond MSCI’s control and that could materially affect actual results, levels of activity, performance or achievements.
Other factors that could materially affect MSCI's actual results, levels of activity, performance or achievements can be found in MSCI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) on February 9, 2024 and in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. If any of these risks or uncertainties materialize, or if MSCI’s underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement in this press release reflects MSCI’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MSCI’s operations, results of operations, growth strategy and liquidity. MSCI assumes no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise, except as required by law.
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For Moody’s Investor Relations:
Shivani Kak
Moody’s Corporation
+1 212-553-0298
Shivani.Kak@moodys.com
For Moody’s Communications:
Michael Adler
Moody’s Corporation
+1 347-225-7472
Michael.Adler@moodys.com
For MSCI Investor Relations:
Jeremy Ulan
MSCI
+1 646 778 4184
jeremy.ulan@msci.com
Jisoo Suh
MSCI
+1 212 804 1598
jisoo.suh@msci.com
For MSCI Communications:
pr@msci.com
Julie Mansmann
MSCI
+1 917 815 6375
Calum MacDougall
MSCI
+44 (0) 7876 836 759
Source: Moody’s Corporation Investor Relations
Source: Moody’s Corporation Investor Relations
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