In a bid to help investors, companies and other industry stakeholders identify the most financially relevant ESG risks and opportunities, MSCI ESG Research has made its ratings accessible via a search tool on its website.
It said the move was “in recognition of growing momentum and interest from a diverse range of stakeholders in ESG investing”.
From 25 November, the ratings of over 2,800 companies in the MSCI ACWI Index will be available, with plans to extend it to 7,500 constituents of the index in 2020.
The online tool will enable users to view each company’s rating, its rating history, benchmark against peers and key ESG-related issues affecting individual companies, MSCI said.
Companies are given a rating from AAA to CCC according to their exposure to ESG risks and how well they manage those risks relative to peers.
MSCI ESG Ratings are constructed using 1,000 data points from company disclosures and alternative data sets across 37 key issues, which are reviewed weekly.
Encourage open discussion
Remy Briand, head of ESG at MSCI, said: “ESG is increasingly being viewed by global investors as a critical factor for building better portfolios.
“The decision to make the MSCI ESG Ratings publicly available is part of a campaign to drive greater transparency in ESG and follows the launch of the MSCI ESG Fund Ratings in July.
“We want to encourage open discussion among investors and companies on how to improve sustainability across the board and hope that making the MSCI ESG Ratings available to all will facilitate these discussions.”