MSCI urges funds industry to adopt ESG

Index provider MSCI has called on investors to more readily integrate environmental, social and governance (ESG) criteria throughout their investment processes.

The firm has published a framework of steps that investors “can and should” undertake to improve practices for ESG integration across the investment value chain.

MSCI chairman and chief executive Henry Fernandez said: “The world is rapidly evolving due to dramatic environmental, social and governance shifts, including the effects and implications of climate change and the move to a low carbon economy, which will significantly impact the pricing of financial assets and the risk and return of investments, and lead to a large-scale re-allocation of capital over the next few decades.”

Implementing ESG criteria is necessary to mitigate risk, identify opportunities, and contribute towards the transition to a sustainable economy, according to MSCI.

The firm’s head of ESG, Remy Briand, said: “Sustainable investing is a critically important part of the long-term investment process.”

©2020 funds europe

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