Moody’s and MSCI forge partnership for advanced ESG and sustainability solutions

MSCI

Moody’s has announced a partnership with MSCI, a provider of critical decision support tools and services for the investment community.

Both companies are known for their substantial influence in financial markets, with Moody’s specializing in credit risk while MSCI focuses on investment decision tools including ESG and sustainability ratings.

The partnership aims to enhance the transparency and effectiveness of ESG and sustainability data in the market. By combining their respective strengths, Moody’s and MSCI are set to deliver comprehensive data-driven risk solutions that cater to a diverse client base, including asset managers, insurers, and corporations across various sectors.

Moody’s will integrate MSCI’s detailed sustainability data and models into its services, enhancing its ESG offerings to its broad customer base. This integration promises to provide Moody’s customers with advanced insights into ESG risks and management, augmenting Moody’s existing data services.

MSCI, on the other hand, will enhance its private company ESG coverage by incorporating data from Moody’s Orbis database, the leading global source of detailed company information. This collaboration will allow MSCI to extend its ESG ratings to a wider range of companies, thereby providing more comprehensive coverage to its customers.

The agreement includes sharing of key resources such as MSCI’s industry-leading ESG ratings and Moody’s extensive private company data. Both companies will also explore joint solutions to enhance private credit market insights, leveraging Moody’s credit scoring models and MSCI’s sustainability evaluations.

Moody’s Ratings division will maintain its operational independence, continuing to offer transparent ESG impact assessments through its Credit Impact Scores and Issuer Profile Scores. The financial terms of the partnership have not been disclosed.

“Moody’s is excited to partner with MSCI, a leader in solutions for the global investment community and a pioneer in ESG and sustainability,” Moody’s President and CEO Rob Fauber said. “This is a real win-win, as Moody’s customers gain access to MSCI’s renowned ESG content and MSCI customers will gain access to Moody’s world-class risk assessment expertise, data and insights.”

“We are exceptionally pleased to partner with Moody’s to offer MSCI’s ESG and sustainability data to Moody’s broad base of global customers,” said MSCI Chairman and CEO Henry A. Fernandez. “Sustainability remains one of the most important trends reshaping the global investment landscape, and the shift to private assets is another. This agreement will help MSCI expand our private company ESG coverage and deliver enhanced solutions across client segments and asset classes.”

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