MSCI launches data hub for enhanced private market climate reporting

MSCI launches data hub for enhanced private market climate reporting

MSCI, a a provider of mission-critical decision support tools and services for the global investment community, has unveiled its new solution, the MSCI Private Company Data Connect.

The genesis of MSCI Private Company Data Connect is rooted in a pressing imperative: the demand for a unified and transparent approach to managing sustainability and climate data in the private market domain. This new product emerges as a response to the evolving landscape of regulatory reporting obligations and the intricate due diligence that investment strategies necessitate.

Delving into the essence of MSCI, the company shines as a beacon in the financial realm, known for its robust decision support tools and services that invigorate the global investment community. The company’s prowess in merging research, data, and technological innovation crafts a foundation that fortifies investment strategies, risk management, and portfolio construction.

Its news platform revolutionizes how general partners (GPs) engage with private companies’ sustainability and climate data. It empowers GPs to execute diligent risk management processes, respond adeptly to sustainability reporting mandates, and sculpt sustainable value creation strategies. This is achieved by facilitating the sharing and analysis of crucial sustainability and climate-related information, thereby aligning investment, lending, and decision-making processes with sustainability considerations.

The distinctive features of MSCI Private Company Data Connect include its robust data ownership policies and proactive networking capabilities. Companies retain full control over their self-reported data, wielding the power to approve or reject data requests. Furthermore, the platform enables companies to actively scout for institutions and market players engaged on the hub, fostering a dynamic environment for data accessibility.

This initiative is underpinned by the ESG Integrated Disclosure Project (ESG IDP), a collaborative endeavour aimed at amplifying transparency and accountability in the private credit and syndicated loan markets.

In a strategic alliance with Persefoni AI, MSCI Private Company Data Connect addresses a critical facet of corporate sustainability – the carbon emissions reporting conundrum. Leveraging Persefoni’s AI-driven carbon measurement and reporting tool, Persefoni Pro, the platform simplifies carbon accounting for companies, bridging the emissions data gap and propelling corporate sustainability efforts forward.

Eric Moen, head of ESG at MSCI, said, “As companies’ sustainability and climate considerations are increasingly being used in capital allocation, lending, and other decision-making processes, investors need an efficient and effective way to share and analyze this critical data.

“In recent years, there has been an uptick in global regulator and client demand for more reporting and data around the overall sustainability of GPs’ investments. MSCI Private Company Data Connect is designed to give investors similar levels of insight into private companies’ sustainability practices with which they assess publicly traded corporations, underscoring MSCI’s deep commitment to enhancing transparency across the global private asset investment landscape and helping investors manage complex, total portfolios.”

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