MSCI Inc. agreed to acquire a 100% stake in data analytics firm Carbon Delta AG, Zurich, through its subsidiary MSCI Barra Sarl, the firms said Monday in a joint statement.
Through the transaction, which is expected to close in the next month, MSCI intends to create extensive climate risk assessment and reporting capabilities for the institutional market to assist investors with climate risk disclosure requirements.
Terms of the deal were not disclosed.
"We believe climate change will become one of the most important investment factors over the long term. Institutional investors should be able to analyze the exposure of their portfolios to climate risk while also being able to report on their climate strategy," Remy Briand, head of ESG at MSCI, said in a news release.
"We are very excited to join forces with MSCI to mature and grow our products. Combining Carbon Delta's scenario analysis and MSCI's products is what institutional investors have been asking for," Carbon Delta CEO Oliver Marchand said in the same release.
Funded from cash, the deal is expected to add $4 to $5 million in recurring expenses to the ESG operating segment, MSCI said in the release.