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MSCI Launches Climate Lab to Help Investors Measure and Manage Climate Risk Across Investment Process

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MSCI has launched MSCI Climate Lab, a new application designed for institutional investors to monitor and manage climate-related and financial risks.

This platform consolidates MSCI's expertise in climate modeling and financial risk management, providing tools for tracking net-zero commitments and aligning investment portfolios with climate targets.

With access to comprehensive climate data, investors can evaluate portfolio alignment with the Paris Agreement and improve transparency in climate strategy execution.

Positive
  • Launch of MSCI Climate Lab enhances portfolio management capabilities for institutional investors.
  • Provides access to market-leading climate data and analytics, aiding compliance with net-zero commitments.
  • Enables assessment of climate risk exposures and trends across various portfolios.
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  • None.

Combining MSCI’s climate data and analytical risk and portfolio management capabilities, Climate Lab supports investors with enterprise-scale monitoring and management of net-zero commitments

NEW YORK--(BUSINESS WIRE)-- MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools and services, today announced the launch of MSCI Climate Lab, a new application for enterprise-level monitoring and management of climate and financial risks for investors. Combining MSCI’s strengths in climate modeling, financial risk management and portfolio analytics, the application provides investors with the data and tools they need to track and assess companies’ progress towards net-zero commitments and align their portfolios with climate targets for a net-zero future.

MSCI Climate Lab arrives at a critical time as large institutional investors increasingly look to align capital with net-zero targets and steer the world onto a path towards a sustainable future. With Climate Lab, MSCI introduces a solution built for institutional investors managing a large-scale transition of portfolios to meet net-zero goals and to manage the underlying complex and vast amounts of data supporting the analysis of those portfolios. Climate Lab combines MSCI’s climate data and financial modeling capabilities across multiple asset classes on one easy-to-use platform to assess trends, identify leaders and laggards, and run scenario analysis from the enterprise to the issuer level. In particular, MSCI Climate Lab will enable aggregation at the portfolio level of the recently released company Implied Temperature Rise solution. Investors will be able to monitor the forward-looking metric across all the funds they manage.

“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,” said Remy Briand, Global Head of ESG and Climate, MSCI. “With Climate Lab, investors finally have the tools to transition their existing investment strategies to net-zero. For chief executives and business leaders, the solution brings a new level of transparency and coordination that ensures crucial climate progress is being made across every level of the organization. This is a vital step in making the net-zero revolution a reality.”

MSCI Climate Lab enables investors to:

  • Access market-leading climate data across multiple asset classes, including data on carbon emissions (Scope 1, 2 and 3), temperature alignment, company net-zero targets, and scenario analysis;
  • Access datasets and analysis from MSCI’s robust climate solutions toolkit, including the recently launched Implied Temperature Rise and Target Scorecard;
  • Identify and understand climate risk exposures and trends at the enterprise level across all your funds and portfolios;
  • Assess and manage portfolio alignment with the Paris Agreement;
  • Forecast enterprise climate emissions based upon issuer targets and explore forward-looking hypothetical scenarios; and
  • Compare companies’ carbon budget to their projected carbon emissions and identify issuers that they may want to engage with on their climate and emissions strategies.

“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,” said Jorge Mina, Head of Analytics, MSCI. “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.”

The launch of Climate Lab underscores MSCI’s continued commitment to develop new investing solutions to accelerate capital markets’ role in fighting the climate crisis. The solution was in part developed in collaboration with Microsoft, as one piece of a broader strategic partnership between the businesses.

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.

The information contained herein (the “Information”) may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI. The Information may not be used to verify or correct other data, to create any derivative works, to create indexes, risk models, or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information or MSCI index or other product or service constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy. Further, none of the Information or any MSCI index is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF MSCI INC. OR ANY OF ITS SUBSIDIARIES OR ITS OR THEIR DIRECT OR INDIRECT SUPPLIERS OR ANY THIRD PARTY INVOLVED IN MAKING OR COMPILING THE INFORMATION (EACH, AN “INFORMATION PROVIDER”) MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH INFORMATION PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE INFORMATION PROVIDERS HAVE ANY LIABILITY REGARDING ANY OF THE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited. Privacy notice: For information about how MSCI collects and uses personal data, please refer to our Privacy Notice at https://www.msci.com/privacy-pledge.

Investor Inquiries

investor.relations@msci.com

Salli Schwartz +1 646 662 9343



Media Inquiries

PR@msci.com

Sam Wang +1 212 804 5244

Melanie Blanco +1 212 981 1049

Laura Hudson +44 (0) 207 336 9653



MSCI Global Client Services

EMEA Client Service + 44 20 7618.2222

Americas Client Service +1 888 588 4567 (toll free)

Asia Pacific Client Service + 852 2844 9333

Source: MSCI Inc.

FAQ

What is MSCI Climate Lab?

MSCI Climate Lab is a new application launched by MSCI to help institutional investors monitor and manage climate-related and financial risks.

How does MSCI Climate Lab support investors?

It provides tools and data to track companies' progress towards net-zero commitments and aligns portfolios with climate goals.

When was MSCI Climate Lab launched?

MSCI Climate Lab was launched recently, as noted in the press release.

What kind of data does MSCI Climate Lab provide?

It offers market-leading climate data, including carbon emissions data, temperature alignment, and scenario analysis.

What are the benefits of using MSCI Climate Lab?

Investors can improve portfolio transparency, assess climate risk, and ensure alignment with the Paris Agreement.

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