Climate Change Data

European Banking Authority (EBA)

Climate Impact & Sustainability Data (2020, 2021, 2023, 2024)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Sustainability Reporting
  • Climate-related risks

Climate Goals & Targets

Environmental Challenges

  • Lack of consistency and comparability in sustainability reporting
  • Increasing fragmentation of sustainability reporting frameworks
  • Complexity and high cost of complying with multiple standards
Mitigation Strategies
  • Proposing the creation of a Sustainability Standards Board (SSB) to develop global sustainability standards

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SASB, GRI, International Framework, Sustainable Development Goals Disclosure recommendations (SDGD)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:38,860 tCO2e/year (2020)
Renewable Energy Share:53%

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion (DE&I)
  • Governance
  • Social Responsibility

Environmental Achievements

  • Reduced carbon emissions (Scope 1, 2 & 3) by 12% compared to 2019 (38,860 GHGE in metric tons CO2e in 2020)
  • 53% of MSCI’s total energy comes from renewable sources
  • Commitment to Net-Zero before 2040

Social Achievements

  • Appointed a Chief Diversity Officer
  • Increased DE&I disclosures
  • Introduced DE&I goals for all senior leaders linked to compensation
  • Launched One MSCI Internship Program to focus on creating junior and diverse pipelines
  • Launched 4th Annual Global DE&I Summit
  • 30% female directors and 33% female employees
  • 42% People of Color in the US workforce

Governance Achievements

  • Implemented new management-level Corporate Responsibility Governance structure
  • Enhanced Board Committee Charters to reflect leading practices
  • Amended Bylaws in 2020 to permit proxy access
  • Published a TCFD, SASB and SFDR report for the first time

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions before 2040
Medium-term Goals:
  • Revised interim targets to achieve net-zero emissions before 2040 will be reviewed and published
Short-term Goals:
  • Accelerate carbon-reduction initiatives focusing on the most material and controllable emissions

Environmental Challenges

  • Reducing Scope 3 emissions (majority of total emissions come from suppliers)
  • Aligning suppliers with MSCI’s net-zero commitments
Mitigation Strategies
  • Launched the Know your Supplier program assessing ESG & Climate performance of our suppliers
  • Updated our Supplier Code of Conduct requiring suppliers to adopt, monitor and report on climate commitments
  • Exploring the use of carbon offsets for residual unavoidable emissions
  • Investigating Energy Attributes Certificates (e.g., RECs)

Supply Chain Management

Responsible Procurement
  • Updated Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SASB, SFDR, CDP, UN PRI

UN Sustainable Development Goals

  • Goal 5: Gender equality
  • Goal 8: Decent work and economic growth
  • Goal 10: Reduced inequalities
  • Goal 13: Climate action

Sustainable Products & Innovation

  • MSCI Implied Temperature Rise
  • MSCI Net-Zero Tracker

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Corporate Governance
  • Artificial Intelligence
  • Supply Chain Due Diligence
  • Biodiversity
  • Modern Slavery

Climate Goals & Targets

Environmental Challenges

  • Extreme weather events impacting homeowners and workers
  • Weak corporate oversight and audit deficiencies
  • Data privacy concerns related to AI
  • Talent management challenges in the AI era
  • Lack of supply chain traceability
  • Insufficient corporate climate disclosures
  • Unintended consequences of SFDR for emerging markets
  • Lack of transparency in private markets regarding climate risk
  • Difficulty in measuring biodiversity impacts
Mitigation Strategies
  • Improved access to audit assessment data
  • Evolving AI regulations
  • Increased focus on upskilling and talent acquisition
  • New regulations requiring supply chain due diligence
  • Adoption of ISSB disclosure standards
  • Anticipated legislative revisions to SFDR
  • Increased availability of private market emissions data
  • Development of biodiversity impact measurement metrics
  • Growth of debt-for-nature swaps and investments in nature-based projects

Supply Chain Management

Responsible Procurement
  • Regulations targeting deforestation and modern slavery

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Higher carbon prices
Opportunities
  • Low-carbon energy transition

Reporting Standards

Frameworks Used: TCFD, ISSB, SFDR, EU Taxonomy

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Environmental risks (climate-related, physical, transition)
  • Social risks
  • Governance risks

Climate Goals & Targets

Long-term Goals:
  • Achieve climate neutrality by 2050
Medium-term Goals:
  • Reduce GHG emissions by 55% by 2030 compared to 1990 levels

Environmental Challenges

  • Lack of relevant historical experience in ESG risk management
  • Differences in ESG risk understanding and management practices across institutions
  • Shortcomings in the inclusion of ESG risks in business strategies and risk management frameworks
Mitigation Strategies
  • Issuing guidelines on minimum standards and reference methodologies for ESG risk identification, measurement, management, and monitoring
  • Requiring institutions to develop CRD-based prudential (transition) plans
  • Promoting convergence across the Union in ESG risk management practices

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Water stress
  • Soil erosion
  • Wildfires
Transition Risks
  • Changes in policies
  • Technological developments
  • Market preferences