MSCI announced the launch of Climate Lab, a new application for enterprise-level monitoring and management of climate and financial risks for investors. It combines climate modeling, financial risk management and portfolio analytics and provides investors with the data and tools they need to track and assess companies’ progress towards net-zero commitments and align their portfolios with climate targets for a net-zero future.
The application is aimed at institutional investors managing a large-scale transition of portfolios, assessing trends, identifying leaders and laggards, and running scenario analysis from the enterprise to the issuer level. It also enables aggregation at the portfolio level of the recently released company Implied Temperature Rise solution. Investors will be able to monitor the forward-looking metric across all the funds they manage.
“The decisions of the financial industry will influence the economic transition towards the net-zero revolution and will permanently change how we allocate capital and manage investment strategies,” said Remy Briand, global head of ESG and Climate at MSCI, in a statement. “For chief executives and business leaders, the solution brings a new level of transparency and coordination that ensures crucial climate progress is being made across every level of the organization.”
“On average, we process 70 million positions and one trillion asset valuations daily,” said Jorge Mina, head of Analytics at MSCI, in a statement. “Climate Lab brings together the climate, analytical and technological capabilities of MSCI for clients to immediately start monitoring and managing their own net-zero transitions.”
The launch of Climate Lab underscores MSCI’s continued commitment to develop new investing solutions to accelerate capital markets’ role in fighting the climate crisis. The solution was in part developed in collaboration with Microsoft, as one piece of a broader strategic partnership between the businesses.