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Moody’s, MSCI team up on ESG, sustainability
Firms to leverage strengths to enhance transparency, deliver data-driven risk solutions
Nicola Yu 3 Jul 2024

Financial information companies MSCI and Moody’s Corporation have partnered with an eye to leveraging each other’s strengths to bring greater transparency on environmental, social and governance (ESG) and sustainability issues to markets and power better decisions.

Moody’s will leverage MSCI’s sustainability data and models, which are used by the world’s largest asset managers and asset owners. The partnership agreement, entered into last week, includes MSCI’s 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, a 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.

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 climate solutions to customers.

“This is a real win-win,” says Rob Fauber, Moody’s president and CEO, “as our customers gain access to MSCI’s ESG content, and MSCI customers will gain access to our risk assessment expertise, data and insights.”

Henry Fernandez, MSCI’s chairman and CEO, adds: “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 us expand our private company ESG coverage and deliver enhanced solutions across client segments and asset classes.”

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