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MSCI launches tool to help investors assess alignment to UN SDGs

MSCI launches tool to help investors assess alignment to UN SDGs

17/09/2020 – 9:35am

MSCI has launched a tool to help investors assess their exposure and alignment to the United Nations Sustainable Development Goals (UN SDGs).

The MSCI SDG Alignment Tool is designed to provide investors with a complete view of a company’s net contribution – both positive and negative – towards addressing each of the 17 UN SDGs. The launch follows MSCI’s collaboration in 2018 with the Organisation for Economic Co-operation and Development (OECD) on a joint discussion paper, “Institutional Investing for the SDGs,” which was intended to spark discussion among stakeholders and market participants. The tool brings together MSCI’s framework covering over 8,600 equity and fixed income issuers, with analysis of the full range of a company’s operations, products, services, policies and practices, to evaluate its net contribution to addressing the global challenges the UN SDGs aim to tackle.

The tool allows for flexible use of its model towards specific impact investing goals or focused on specific alignment dimensions, powered by data inputs from MSCI ESG Research’s core research products.

Remy Briand, Head of ESG at MSCI, says: “Five years on from the adoption of the UN SDGs, we are at a critical juncture. There is increasing demand from investors to channel capital to help deliver on these goals, but the fragmented data around the extent to which a company’s products and operations are aligned to a particular SDG remains an obstacle. Through this new tool we are seeking to provide an additional layer of transparency for investors to better assess the merits of claims put forth by their portfolio companies. With the target deadline for achieving the SDGs only a decade away, the standardisation of that assessment is critical.”

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