Stockholm (NordSIP) – Ahead of the critical COP26 conference due to start next week, investors and other decision-makers need new levels of transparency to find listed companies aligned with global climate goals. To this end, MSCI, a leading index and financial data provider, announced this week that it was making the Implied Temperature Rise of over 2,900 companies publicly available on its website, to allow investors access to the data and transparency required to navigate their transition to net-zero. Asides from the Implied Temperature Rise, users will also be able to find companies’decarbonization target (through MSCI’s Target Scorecard), and its MSCI ESG Rating which has been available since 2019. The 2,900 companies are constituents of MSCI ACWI Index.
“At MSCI, we are staunch advocates of the need for greater transparency and consistent standards in ESG and Climate metrics. Publishing the Implied Temperature Rise data is a natural extension of the transparency work we started in 2019 when MSCI published our ESG Ratings. As COP26 fast approaches, we are confident this new data adds much-needed clarity to the discussion on the role of capital markets in combating climate change. We are proud to be a leader in driving ESG and Climate transparency, equipping investors with the data they need as they sharpen their focus on the financial impact of climate change, raising awareness of the value of ESG data and ratings, and improving disclosure standards,” Remy Briand, Global Head of ESG and Climate at MSCI, says.
Implied Temperature Riseassesses companies’ commitments to net-zero emissions using companies’ alignment with global temperature targets, which is expressed in degrees Celsius. The variable is calculated by comparing companies’ projected emissions with their allocation of the global remaining carbon budget, a figure that sets the upper limit on allowable carbon emissions to keep the planet below key temperature targets, a benchmark that is also referenced in MSCI’s quarterly Net-Zero Tracker.
It is modelled to meet the design recommendations set out by the Task Force on Climate-Related Financial Disclosures (TCFD) Portfolio Alignment Team for all segments of the financial sector. Implied Temperature Risein September and reportedly captures crucial benchmarks, such as the 2°C target set by the Intergovernmental Panel on Climate Change (IPCC), as well as the 1.5°C limit.
