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MSCI makes ESG ratings public in transparency drive

ESG_worldIndex provider MSCI has made its environmental, social and governance (ESG) ratings publicly available as part of a drive to promote greater transparency.

The ESG ratings of over 2,800 companies listed on the MSCI’s flagship ACWI index are now accessible via a search tool on the firm’s website.

Remy Briand, head of ESG at MSCI, said: “The decision to make the MSCI ESG Ratings publicly available is part of a campaign to drive greater transparency in ESG. We want to encourage open discussion among investors and companies on how to improve sustainability across the board and hope that making the MSCI ESG Ratings available to all will facilitate these discussions.”

Plans are in the pipeline to make the ESG ratings for 7,500 constituents of the MSCI ACWI Investable Markets Index available next year.

MSCI ESG Research rates companies on an ‘AAA’ to ‘CCC’ scale according to their exposure to ESG risks, and how well those risks are managed.

The index provider leverages artificial intelligence and machine learning, alongside a team of over 200 to monitor and update companies on an ongoing basis.

The ESG ratings are constructed using 1000 data points from company disclosures and alternative data sets across 37 key ESG issues that are reviewed on a weekly basis.

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