MSCI launches institutional investor climate risk tool
Data management critical to financial modelling of capabilities across multiple asset classes
7 Oct 2021 | The Asset

Index provider MSCI has launched its Climate Lab application for enterprise-level monitoring and management of climate and financial risks 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.

The application combines MSCI’s climate data and financial modelling capabilities across multiple asset classes on one platform to assess trends, identify leaders and laggards, and run scenario analysis from the enterprise to the issuer level.

In particular, the application 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,” says Remy Briand, global head, ESG and climate, MSCI. “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.

“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.”

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