The latest developments in the environmental, social and governance-driven investments and banking space.
Market index and investment data group MSCI is launching a set of tools to help investors identify firms that could harm biodiversity and cause damage to forests.
The tools are examples of the kind of solutions the investment sector is developing to tackle environmental challenges such as species loss.
The new screening tools combine thousands of ESG and climate data points, overlayed with MSCI’s proprietary geolocation data that helps pinpoint a company’s operations. MSCI intends to make the tools available in early 2023.
MSCI Biodiversity-Sensitive Areas Screening Metrics; and
MSCI Deforestation Screening Metrics.
At a time when there have been concerns about firms trying to massage their green credentials – aka “greenwashing” – there is need for more rigorous ways to know if investments do what they say.
“Global biodiversity challenges, such as the spread of invasive species, land-use change, and pollution, will have very tangible impacts on the way in which companies function in the near- and long-term future. MSCI aims to help institutional investors understand those risks on the portfolio level,” Nadia Laine, executive director, head of ESG products at MSCI, said.