Investors interested in learning more about the challenges and opportunities of making their portfolios more sustainable can do so by going to the movies.
MSCI Inc.'s new documentary, "Net-Zero Now," covers big picture issues like what it will take to decarbonize the global economy. There are also a lot of how-to moments, with examples of how some companies gauge their carbon footprint and what they are doing to reduce to it.
Those examples and various measurement tools offer investors useful insights into how to measure their own portfolios' temperature and how to engage with companies to accelerate action toward a net-zero world.
There are plenty of scary scenes, too. On its current path, MSCI experts calculate that the world is headed toward global temperature increases of 3.8 degrees Celsius by 2050, nowhere near the Paris Agreement goal of keeping increases under 2 degrees Celsius. It is even scarier in some parts of the world that are going to suffer disproportionately from global warming, even under the best scenarios. Risks from floods and changing political winds also make their appearance.
The documentary's rallying cry to investors is that they have a critical part to play. In just under one hour, experts at MSCI help investors understand the science behind measuring and addressing climate change and ways to reallocate for global solutions.
MSCI, a research and ratings firm which has committed to being a net-zero company before 2040, does not sugarcoat what lies ahead. As ESG head Remy Briand puts it, "We're talking about the equivalent of a full global industrial revolution."