Steps that investors can and should take to integrate ESG into their investment processes are available in a framework released Tuesday by MSCI.
The MSCI Principles of Sustainable Investing covers three core pillars: investment strategy, portfolio management and investment research.
MSCI is calling on all investors globally to more readily integrate ESG considerations throughout their investment processes.
"The world is rapidly evolving due to dramatic environmental, social and governance shifts, including the effects and implications of climate change and the move to a low carbon economy, which will significantly impact the pricing of financial assets and the risk and return of investments, and lead to a large-scale re-allocation of capital over the next few decades," MSCI Chairman and CEO Henry Fernandez said in a statement.
In addition to data, research and other tools to help with ESG integration, MSCI offers publicly available ESG ratings of the most commonly owned companies worldwide. By April 2020 it plans to publish the ESG characteristics of all MSCI equity indexes and the most commonly owned mutual funds.
