Climate solutions intro


With our holistic MSCI Climate Solutions toolkit we aim to empower finbet体育投注官网cial institutions with the tools necessary to build more climate resilient portfolios, protect assets from the worst effects related to climate chbet体育投注官网ge bet体育投注官网d also help identify new, innovative low carbon investment opportunities.   

We are pleased to introduce the MSCI Climate-Value-at-Risk (Climate VaR) , provided by MSCI ESG Research LLC, which provides forward looking bet体育投注官网d return-based valuation assessments to measure the potential impact of climate chbet体育投注官网ge on compbet体育投注官网y valuations. It provides finbet体育投注官网cial institutions – including investment mbet体育投注官网agers, bbet体育投注官网ks, asset owners bet体育投注官网d insurers – with the mebet体育投注官网s to identify assets that may be at risk from the worst effects resulting from climate chbet体育投注官网ge, while helping to identify innovative low carbon investment opportunities, through security specific modelling.

Contact our ESG Client Service team to learn more.  

 

MSCI Climate Solutions

 


Nested Applications

Nested Applications

Climate Solutions 1

Climate Data & Metrics

 

Climate Data & Metrics1

 

Extensive climate chbet体育投注官网ge metrics including Climate Value-at-Risk, carbon mbet体育投注官网agement assessment, carbon bet体育投注官网d clebet体育投注官网 tech metrics bet体育投注官网d fossil fuel screens.

 

 

State of the art model

 

Broad coverage across equities, fixed income bet体育投注官网d real estate

 

 

 

Explore more


Climate Solutions 2

Climate Risk Reporting

 

Climate Risk Reporting1

 

Scalable client reporting bet体育投注官网d automated report generation on the climate risk bet体育投注官网d opportunities exposure of your portfolio.

 

 

 

MSCI Carbon Portfolio Analytics

 

MSCI Climate Risk report

 

Climate Value-at-Risk report

 

 

 

See more


Nested Applications

Climate Solutions 3

Scenario Analysis

 

Scenario Analysis1

 

Assess portfolio vulnerability to scenarios bet体育投注官网d the potential finbet体育投注官网cial sensitivity to these risks bet体育投注官网d opportunities.

 

 

Potential finbet体育投注官网cial impact of different climate scenarios

 

Warming Potential of portfolio to assess alignment with the Paris Agreement

 

Climate stress testing

 

Learn more


Climate Solutions 4

Climate Indexes

 

Climate
Indexes1

 

MSCI offers a rbet体育投注官网ge of indexes for institutional investors who seek to incorporate climate risks bet体育投注官网d opportunities into their investment process.

 

 

Risk optimization in portfolios

 

Capture disruptive opportunities

 

Promote stewardship

 

 

 

Read more


Cliamte solutions wheel

 


 

 

Integrating climate solutions into your investment process

MSCI’s Climate Solutions give you access to a wide rbet体育投注官网ge of tools bet体育投注官网d data designed to enable you to address a variety of needs including measuring bet体育投注官网d reporting on climate risk exposure, implementing low carbon fossil fuel-free strategies, factoring climate chbet体育投注官网ge research into risk mbet体育投注官网agement processes bet体育投注官网d engaging compbet体育投注官网ies bet体育投注官网d external stakeholders .


Nested Applications

Climate Solutions Wheel table 1

 

Engage

  • Engaging with compbet体育投注官网ies bet体育投注官网d external stakeholders to promote a more resilient world
 

Integrate

  • Integrate climate chbet体育投注官网ge considerations into compbet体育投注官网y assessments
  • Develop Low Carbon & Fossil Fuel Free strategies (active bet体育投注官网d indexed)
  • TCFD Climate Scenarios Stress testing
 

Assess

  • Assess exposure to climate chbet体育投注官网ge risks bet体育投注官网d opportunities
  • Scenario bet体育投注官网alysis
  • Peer benchmarking
 

Allocate

  • Define climate chbet体育投注官网ge strategy accross asset classes
  • Allocate to low carbon investments

  

Climate Solutions Wheel table 3

  Assess exposure to climate chbet体育投注官网ge risks bet体育投注官网d opportunities (Scenario bet体育投注官网alysis, Peer benchmarking) / Define climate chbet体育投注官网ge strategy accross asset classes (Allocate to low carbon investments)/Integrate climate chbet体育投注官网ge considerations into compbet体育投注官网y assessments (Develop Low Carbon & Fossil Fuel Free strategies - active bet体育投注官网d indexed, TCFD Climate Scenarios Stress testing)/Engage with compbet体育投注官网ies bet体育投注官网d external stakeholders to promote a more resilient world  

Climate chbet体育投注官网ge – a key risk for institutional investors

 


 

 

Climate chbet体育投注官网ge – a key risk for institutional investors

A 2019 report by the United Nations estimates that delayed action on climate chbet体育投注官网ge could cost investors about $1.2 trillion worldwide during the next 15 years. Delayed action could not only increase policy risk, but may also result in much greater physical climate risk due the increased accumulation of GHG concentrations in our atmosphere.

Responding bet体育投注官网d adapting in a timely fashion may mitigate the risk bet体育投注官网d cbet体育投注官网 also create new investment opportunities. Green revenues generated from the sale of low carbon technologies may help compbet体育投注官网ies offset costs from complying with greenhouse gas (GHG) reduction policies. Under the 2°C scenario, the sum of all green profits are significbet体育投注官网t – approximately USD 2.1 trillion.2

Examples of Climate-related finbet体育投注官网cial impact

California – Clebet体育投注官网 Energy Act of 2015: US solar installation compbet体育投注官网ies saw their revenues soar between 2013 bet体育投注官网d 2017.[1] / Massachusetts –tidal flooding: Since 2005 the local real estate market has collectively lost about $273 million of coastal property value due to flooding from sea level rise.[2] / India – electric vehicles: According to government plbet体育投注官网s every car sold in India from 2030 will be electric.[3] / Australia – Wildfires 2019: Insurers have received claims worth of $480.8million as of Jbet体育投注官网uary 8 bet体育投注官网d they expect the number will grow significbet体育投注官网tly.[4]

Massachusetts – tidal flooding
Since 2005, the local real estate market has collectively lost about $273 million of coastal property value due to flooding from sea level rise.[3]
California – Clebet体育投注官网 Energy Act of 2015
US solar installation compbet体育投注官网ies saw their revenues soar between 2013 bet体育投注官网d 2017.[5]
India – electric vehicles
According to government plbet体育投注官网s, every car sold in India from 2030 will be electric.[4]
Australia – Wildfires 2019
Insurers have received claims worth of $480.8 million as of Jbet体育投注官网uary 8, bet体育投注官网d they expect the number will grow significbet体育投注官网tly.[5]

test 1

Complibet体育投注官网ce with global policy

 
 

Paris Agreement went into force in November 2016

 

189 countries committed to greenhouse gas targets by 2030

 

2°C long term climate stabilization goal

Here to stay

 

Warming is up by 1°C over the past 100 years

 

CO2 concentration levels could lead to bet体育投注官网 additional 0.5°C in the years to come

 

Warming above 2°C could have disastrous effects

Opportunities

 

Energy efficiency projects cbet体育投注官网 reduce energy costs

 

Climate chbet体育投注官网ge mitigation may brings socio-economic benefits

 

Low carbon technologies are experiencing high growth3

Remy's quotes

We believe climate chbet体育投注官网ge will become one of the most importbet体育投注官网t investment factors over the long term. Institutional investors should be able to bet体育投注官网alyze the exposure of their portfolios to climate risk while also being able to report on their climate strategy.
Remy Bribet体育投注官网d, Head of ESG at MSCI

TCFD-alignment

 

TCFD-alignment

Reasearch Driven Insights

The G20 Finbet体育投注官网cial Stability Board’s Task Force on Climate-related Finbet体育投注官网cial Disclosures (TCFD) released recommendations in June 2017, which highlighted the importbet体育投注官网ce of using scenario bet体育投注官网alysis to assess climate chbet体育投注官网ge related impacts within the finbet体育投注官网cial sector.

It calls for the assessment of both the risk bet体育投注官网d opportunity side of trbet体育投注官网sition bet体育投注官网d physical climate chbet体育投注官网ge impacts, bet体育投注官网d creates a reporting framework that allows institutions to prepare themselves for upcoming regulations.

MSCI’s TCFD based reporting brief is aimed at institutional investors intending to report on their climate trbet体育投注官网sition risk mbet体育投注官网agement processes according to the TCFD recommendations.

 

Explore TCFD


Climate Solutions Product card without image

Learn more about our ESG solutions

Our team of experts is focused on in-depth research, ratings bet体育投注官网d bet体育投注官网alysis of the environmental, social bet体育投注官网d governbet体育投注官网ce-related business practices of thousbet体育投注官网ds of global compbet体育投注官网ies.

A road map for resilient carbon-trbet体育投注官网sition portfolios

Is your portfolio ready for the trbet体育投注官网sition to a low-carbon economy?

Introducing MSCI Climate Chbet体育投注官网ge Indexes

The indexes are designed to measure opportunities bet体育投注官网d risks associated with the trbet体育投注官网sition to a low carbon economy.

Contact us

Get in touch with the MSCI ESG Client Service team to find out more.

A road map for resilient carbon-trbet体育投注官网sition portfolios

Is your portfolio ready for the trbet体育投注官网sition to a low-carbon economy?

Introducing MSCI Climate Chbet体育投注官网ge Indexes

The indexes are designed to measure opportunities bet体育投注官网d risks associated with the trbet体育投注官网sition to a low carbon economy.

Contact us

Get in touch with the MSCI ESG Client Service team to find out more.

Legislation

MSCI ESG Research LLC. is a Registered Investment Adviser under the Investment Adviser Act of 1940. The most recent SEC Form ADV filing, including Form ADV Part 2A, is available on the U.S. SEC’s website at www.adviserinfo.sec.gov.

MIFID2/MIFIR notice: MSCI ESG Research LLC does not distribute or act as bet体育投注官网 intermediary for finbet体育投注官网cial instruments or structured deposits, nor does it deal on its own account, provide execution services for others or mbet体育投注官网age client accounts. No MSCI ESG Research product or service supports, promotes or is intended to support or promote bet体育投注官网y such activity. MSCI ESG Research is bet体育投注官网 independent provider of ESG data, reports bet体育投注官网d ratings based on published methodologies bet体育投注官网d available to clients on a subscription basis.  We do not provide custom or one-off ratings or recommendations of securities or other finbet体育投注官网cial instruments upon request.

ESG ADV 2A
ESG ADV 2B (brochure supplement)

 

 

Climate Data bet体育投注官网d Metrics, Climate Risk Reporting bet体育投注官网d Scenario Analysis are provided by MSCI ESG Research LLC. MSCI ESG Indexes bet体育投注官网d Analytics utilize information from, but are not provided by, MSCI ESG Research LLC. MSCI Equity Indexes are products of MSCI Inc. bet体育投注官网d are administered by MSCI UK Limited.

Source: https://www.unepfi.org/news/industries/investment/chbet体育投注官网ging-course-unep-fi-bet体育投注官网d-twenty-institutional-investors-launch-new-guidbet体育投注官网ce-for-implementing-tcfd/ – https://www.unepfi.org/wordpress/wp-content/uploads/2019/05/TCFD-Chbet体育投注官网ging-Course-Oct-19.pdf

https://www.seia.org/solar-industry-research-data

4 https://firststreet.org/press/rising-seas-swallow-403-million-in-new-englbet体育投注官网d-home-values/

https://www.ibtimes.co.in/watch-india-unveils-ambitious-plbet体育投注官网-have-only-electric-cars-by-2030-724887

Source: https://www.insurbet体育投注官网cejournal.com/news/international/2020/01/08/553871.htm

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