“We believe climate change will become one of the most important investment factors over the long term.”
Remy Briand, Head of ESG at MSCI
MSCI announced today that its subsidiary, MSCI Barra (Suisse) Sàrl, has entered into a definitive agreement to acquire Zurich-based environmental fintech and data analytics firm, Carbon Delta AG (“Carbon Delta”).
Founded in 2015, Carbon Delta is a global leader for climate change scenario analysis. Together, MSCI and Carbon Delta will create an extensive climate risk assessment and reporting offering for the institutional market, providing global investors with solutions to help them better understand the impact of climate change on their investment portfolios and comply with mandatory and voluntary climate risk disclosure initiatives and requirements. Voluntary reporting initiatives are being led by entities such as the Task Force on Climate-related Financial Disclosures (TCFD) and the United Nations-supported Principles for Responsible Investment (UNPRI), while mandatory disclosure requirements are quickly developing across the European Union and North America.
The Carbon Delta integration will expand MSCI’s robust suite of climate risk capabilities with state-of-the-art modeling technology that supports climate scenario analysis and forward-looking assessment of transition and physical risks, as well as extensive company-level analysis of publicly traded companies globally. This will be offered as MSCI Climate Value-at-Risk, an innovative and pioneering climate risk metric that calculates the impact of climate change on a company’s market value and helps investors understand and quantify these risks within their portfolio.