MSCI has partnered with GIST, a data and analytics company, to expand its ESG offering, providing investors with greater choice, flexibility and access to diverse data sources to factor into environment, social and governance (ESG) portfolio construction, climate integration and reporting.
The collaboration means that GIST’s Impact Data, which measures the value a company is adding to or subtracting from society’s natural, human and produced capital, is now available to MSCI clients to enhance their investment decision making processes.
GIST’s impact methodology uses scientific and economic modelling to provide a quantitative measure of the actual impacts of a company’s business operations on the UN Sustainable Development Goals in economic terms.
Built with causality modelling and using MSCI ESG research performance data as inputs, GIST’s Impact Data estimates the economic value of any company’s impacts on the environment such as natural capital as well as on employees including knowledge, skills, and other human capital impacts.
It also assesses the influence of elements of GDP such as value-addition to produced capital.
The addition of GIST’s Impact Data extends to current constituents of the MSCI World Index and plans are to expand to the MSCI ACWI Index in the second quarter.
“GIST’s robust data will allow our clients to measure and report on the extent their investments are contributing towards or subtracting from the achievement of the UN Sustainable Development Goals,” says Eric Moen, head of ESG products at MSCI.
He adds, “GIST’s insights reflect company actions rather than intentions and provide a much-needed quantitative lens to measure and report on impact and make more informed investment decisions.”
Pavan Sukhdev, founder and chief executive officer of GIST, added: “The need to recognise all dimensions of investment impacts, and to redefine corporate performance to capture the big picture, has never been more keenly or widely felt than it is today.”
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