MSCI Unveils New Net-Zero Tool

Published on: 05 July 2022

MSCI has introduced a new instrument to assist financial institutions in quantifying the scope and effect of greenhouse gas emissions across their lending and investment portfolios.

Total Portfolio Footprinting enables institutions to define and manage reduction goals for their financed emissions relative to a baseline.

It will assist them in complying with key global standards and regulations, such as the Taskforce for Climate-Related Disclosure (TCFD) framework, the Partnership for Carbon Accounting Financials (PCAF), the National Association of Insurance Commissioners (NAIC), and the European Insurance and Occupational Pensions Authority (EIOPA), according to the index provider.

MSCI has developed a variety of climate models, data, and tools to assist investors in navigating net-zero targets and transitions. This product is the most recent addition to this suite of climate models, data, and tools. Climate Lab, Net Zero Tracker, and Implied Temperature Rise are some examples.

Eric Moen, global head of ESG and climate at MSCI, said: “The introduction of climate-related regulation and increasing stakeholder demands are putting greater scrutiny on financial institutions such as banks, insurers and asset managers as they seek to measure climate risk across their investment portfolios.

"These institutions may need to take urgent action to accelerate progress on their climate journey. Total Portfolio Footprinting can help them to broadly assess the carbon emissions they are financing through loans and investments and assist them in taking prompt and meaningful action.”

Source: The Asset

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