Business Wire

MSCI Calls on Capital to Lead the Net-Zero Revolution

Share

Addressing climate change will require the largest reconstruction of the global economy since the Industrial Revolution, according to a report published today by MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community.

The Role of Capital in the Net-Zero Revolution’highlights how capital markets participants must be a powerful and positive force to urgently drive the systemic transformation needed to avert climate catastrophe. This call to action identifies specific steps that companies as well as owners and managers of capital must take to drive the achievement of a net-zero economy by 2050.

Analysis by MSCI of its All Country World Investable Markets Index (MSCI ACWI IMI) - a measure of approximately 9,000 publicly listed companies across 50 developed and emerging markets with a market value of over USD 70 trillion1 – revealed those companies annually emit an estimated 11.2 gigatons of carbon dioxide equivalent (CO2e)2. Our model indicates that, without any change to current practices, the annual emissions of these companies could reach 16.8 gigatons of CO2e by 20503, leading to a planet that is 3.5˚C warmer by the end of the century4. This trajectory demonstrates the tremendous challenge in reaching net-zero and the urgency to act now.

Therefore, MSCI calls upon:

  • Asset owners including sovereign wealth funds, pension funds, endowments, insurance companies and individuals to reallocate capital to less emission intensive investments and to green solutions aligned with accepted warming scenarios; target a year-on-year decarbonization of portfolios that allows for a reduction in the world’s total emissions by 10% a year; and transition to a policy benchmark to help portfolios move toward net-zero
  • Asset managers to use their voting rights and direct engagement with companies to urge them to align with net-zero targets; support owners of capital by building expertise to fund clean energy; and develop risk management and reporting expertise in accordance with the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD)
  • Banks to support businesses with capital to invent and scale clean energy; and drive developments in corporate lending and corporate debt and equity issuance linking terms of capital to net-zero objectives
  • Companies to set emissions targets to reach net-zero no later than 2050; articulate credible and specific strategies to achieve these reductions; and incorporate best practices when reporting and disclosing data and initiatives undertaken

Reflective of MSCI’s commitment to support the transparency needed to evaluate the progress of decarbonization, MSCI will publish quarterly the MSCI ACWI IMI Net-Zero Tracker. This report will indicate the aggregate temperature alignment of MSCI ACWI IMI with a 1.5˚C trajectory, as well as highlight the companies and sectors that have made the greatest progress in the path toward net-zero and identify the world’s laggards. MSCI will consult with market participants to develop and enhance the report over time.

Henry Fernandez, Chairman and Chief Executive Officer, MSCI, comments, “On the current trajectory, MSCI ACWI IMI will be scarcely greener in 2050 than in 2020, with an estimated 80% of companies exceeding the emissions budget needed to be well below 2.0˚C5. This is not a path to net-zero. Capital markets are an essential and critical force to drive the transition to net-zero with concerted action from all participants, ranging from a reallocation of capital by asset owners, to effective channelling of funds by asset managers and banks to greener investments and innovation, alongside the commitment of companies.

“A global index such as the MSCI ACWI IMI can serve as a measure of the carbon trajectory of the world’s companies. By acting as the objective and transparent measure of progress, we can help drive accountability, reflect the voice of the world’s largest investors and identify the companies making progress to power the systemic transformation needed for a net-zero revolution.”

MSCI, as a company, has committed to the goal of net-zero emissions throughout its global operations before 2040. MSCI’s transition strategy focuses on reducing emissions through carbon-reduction initiatives and engaging suppliers to achieve shared net-zero goals. More information about MSCI’s net-zero commitment can be found here.

About MSCI Inc.

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.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or performance and involve risks that may cause actual results or performance differ materially and you should not place undue reliance on them. Risks that could affect results or performance are in MSCI’s Annual Report on Form 10-K for the most recent fiscal year ended on December 31 that is filed with the SEC. MSCI does not undertake to update any forward-looking statements. No information herein constitutes investment advice or should be relied on as such. MSCI grants no right or license to use its products or services without an appropriate license. MSCI MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE WITH RESPECT TO THE INFORMATION HEREIN AND DISCLAIMS ALL LIABILITY TO THE MAXIMUM EXTENT PERMITTED BY LAW.

________________________________
1 Based on the sum of the free- float- adjusted market capitalization of all MSCI ACWI IMI constituents as of March 31, 2021.
2 Calculated as of March 31, 2021, based on the sum of MSCI ACWI IMI constituents’ Scope 1 emissions, using publicly reported data where available and MSCI’s Carbon Estimation Methodology where no reporting is available. One gigaton is equal to one billion tons.
3 Projection based on the sum of MSCI ACWI IMI constituents’ Scope 1 emissions, taking into account publicly announced carbon-emissions reduction targets. The projection uses an annual emission growth rate of 1.4%, which is the average annual emission growth rate of the world between 2010 and 2019. See: “Emission Gap Report 2020.” UNEP, Dec. 9, 2020.
4 Compared to pre-industrial temperatures, as estimated by MSCI’s Warming Potential model, as of March 31, 2021. As highlighted in the TCFD’s Forward Looking Financial Sector Metrics consultation, the financial industry is currently working on aligning the core parameters between the methodologies for implied Temperature Rise metrics such as MSCI’s Warming Potential model.
5Climate Reality Bites: Actually, We Will Not Always Have Paris.” December 2020. MSCI.com

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Media Inquiries
PR@msci.com
Sam Wang +1 212 804 5244
Melanie Blanco +1 212 981 1049
Laura Hudson +44 (0) 207 336 9653
Rachel Lai +852 2844 9315

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

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.com

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

NIKE, Inc. Board of Directors Announces Long-Time Nike Veteran Elliott Hill to Return as President and Chief Executive Officer John Donahoe to Retire from Nike19.9.2024 22:15:00 CEST | Press release

The Board of Directors of NIKE, Inc. (NYSE:NKE) announced today that Elliott Hill will become President and Chief Executive Officer of NIKE, Inc., effective October 14, 2024. Hill will also become a Director of the NIKE, Inc. Board of Directors and a member of the Executive Committee. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240919388699/en/ Incoming NIKE, Inc. President & CEO Elliott Hill (Photo: Business Wire) “I am excited to welcome Elliott back to NIKE. Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear Elliott’s global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike’s next stage of growth,” said Mark Parker, Executive Chairman of NIKE, Inc. “Pers

Mary Kay Expands Into Kyrgyzstan, Further Elevating Beauty and Empowerment Around the World19.9.2024 19:03:00 CEST | Press release

Mary Kay Inc., a global leader in skin care and cosmetics, is proud to announce its expansion into Kyrgyzstan, marking a significant milestone in its ongoing international growth strategy. This exciting development underscores Mary Kay’s commitment to empowering women and providing innovative, high-quality skincare and beauty products across the globe. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240919159057/en/ Mary Kay’s expansion into Kyrgyzstan marks another step forward in the company’s mission to enrich women’s lives around the world, offering top-tier beauty products and unparalleled business opportunities. (Photo: Mary Kay Inc.) The beauty and personal care market is experiencing robust growth internationally, with sales volume in these categories almost doubling over the past several years. The beauty market is expected to reach approximately $580 billion by 2027, growing by a projected 6 percent per year1 while

Xsolla Partners With AbleGamers for Charity Campaign at TwitchCon 202419.9.2024 19:00:00 CEST | Press release

Xsolla, a global video game commerce company, is excited to announce its collaboration with AbleGamers for an impactful charity campaign at TwitchCon 2024. This partnership aims to further AbleGamers' mission of improving accessibility in gaming for individuals with disabilities through an interactive and meaningful activation. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240919722398/en/ (Graphic: Xsolla) Attendees who visit the Xsolla booth (Booth 1515-SW) at TwitchCon will have the exclusive opportunity to claim one of two specially designed charity pins. By sharing a photo of their pin on their social channels on Instagram, Facebook, or Twitter using the hashtags #LightstreamAble and #XsollaAble, participants will help raise funds for AbleGamers. For every qualifying social post, Xsolla and its partners will donate $5 to AbleGamers, up to $10,000. To amplify awareness, include hashtags: #TwitchCon #BongoCat #Lightstrea

Sandvine Announces New Ownership and Capital Infusion19.9.2024 18:38:00 CEST | Press release

Sandvine (the “Company”), a market-leading provider of Over-the-Top (OTT) Application Classification and Quality of Experience (QoE) solutions, today announced that it has been acquired by a group of leading US investment firms that previously were, and continue to be, lenders to the Company. In connection with this change of control transaction, the lenders agreed to reduce the Company’s total outstanding debt significantly. Following the change of control transaction, on September 13, 2024, these investors also entered into a binding agreement to provide new capital to Sandvine. The financing is expected to close in September 2024 and will strengthen the Company’s balance sheet. These enhancements to Sandvine’s financial position accompany its recently announced reorientation of its business model to focus on serving customers in large democratic markets. Together, these developments enable the Company to continue serving as the technology partner of choice for scaled, sophisticated

Neuraptive Therapeutics Announces Presentation of Phase 2 Topline Interim Results for NTX-001 at the 2024 American Society for Surgery of the Hand (ASSH) Annual Meeting19.9.2024 18:31:00 CEST | Press release

Neuraptive Therapeutics Inc., a leading biopharmaceutical company focused on novel treatments for peripheral nerve injuries, today announced that interim topline results from its ongoing Phase 2 NEUROFUSE Study will be presented at the 2024 American Society for Surgery of the Hand (ASSH) Annual Meeting, held September 19-21 in Minneapolis, MN. The presentation, titled Safety and Efficacy of NTX-001 in the Treatment of Acute Single Transected Peripheral Nerve Injuries: A Phase 2 Randomized Controlled Trial, was awarded a Top 10 Best Paper designation and will be presented by Dr. David Brogan of Washington University during the scientific paper session on Thursday, September 19. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240919597699/en/ David M. Brogan, MD, MSc, Assistant Professor, Orthopaedic Surgery, Division of Hand and Microsurgery, Washington University in St. Louis (Photo: Business Wire) The presentation will highl

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
HiddenA line styled icon from Orion Icon Library.Eye