MSCI ESG Fund Metrics Launches on Leading Market Data Platforms
(3BL Media/Justmeans) — The growing demand for ESG transparency is driving adoption of MSCI ESG Quality Score, values and risk metrics. In response, MSCI ESG Research has announced that MSCI ESG Fund Metrics is now available on 10 market data platforms globally in a move to help financial advisors and wealth managers provide their clients with environmental, social and governance (ESG) portfolio transparency.
MSCI ESG Fund Metrics aims to provide insight into the overall ESG quality of mutual fund and exchanged-traded fund (ETFs) holdings. The scores and metrics are derived from MSCI ESG Ratings, which measures the ability of companies to manage medium- to long-term ESG risks and opportunities.
The MSCI ESG Quality Score covers more than 26,000 equity, fixed-income, and multi-asset class funds worldwide. Additional metrics including ESG Score Peer Rank, ESG Score Global Rank, Carbon Intensity, Sustainable Impact Exposure, and SRI Screening Criteria Exposure provide insight into how funds rank compared to peers and score on various environmental, social, political and values-based criteria.
The interest in ESG impact from high-net-worth and ultra-high net worth investors continues to grow year over year across generations, with Millennials at the forefront, A total of 76% of Millennials reported reviewing their portfolio assets based on ESG impact—up from 73% in 2016 and 40% in 2015. Yet just 18% said they discussed these investments with their financial advisor.
“The Millennial generation will soon represent one-third of all adults in the U.S. This significant population has a keen interest in aligning their investments with their values,” said Eric Moen, Managing Director of MSCI ESG Research. “We are also seeing a growing demand for ESG information from our institutional clients and the financial advisor community, who require tools to interpret and report on the ESG characteristics of a portfolio. We are excited to introduce ESG Fund Metrics to more than 145,000 financial advisors through these leading global fund platforms.”
MSCI ESG Research has a dedicated, in-house team that assesses thousands of data points across 37 ESG key issues, covering more than 6,400 global companies (11,000 total issuers including subsidiaries) in more than 70 sectors. MSCI ESG Research works with 46 of the top 50 global asset managers and more than 1,000 clients globally.