Financial News
MSCI Develops Solution to Centralize Private Market Climate and Sustainability Disclosures
- MSCI Private Company Data Connect allows companies to self-report data to investors on a secure, digital hub
- Tool supports general partners’ evolving regulatory reporting requirements, investment due diligence, dedicated strategies
- Leverages the ESG Integrated Disclosure Project template to drive standardization and transparency
- Integrates with Persefoni’s carbon accounting software to help close the emissions gap
MSCI Inc. (NYSE: MSCI), a leading provider of mission-critical decision support tools and services for the global investment community, today announced the launch of MSCI Private Company Data Connect – a centralized hub that provides general partners (“GPs”) access to private companies' sustainability and climate data and disclosures.
MSCI Private Company Data Connect is designed to drive transparency and a common language for investors in private markets considering companies’ sustainability and climate data by enabling GPs to:
- Execute due diligence and risk management processes;
- Respond to client and regulatory sustainability reporting requirements;
- And develop sustainable value creation strategies, such as engagement and target-setting for their portfolio companies.
Companies retain ownership of their self-reported data and can approve or decline data requests from GPs and lenders directly on the platform. MSCI Private Company Data Connect also allows companies to search for institutions and market participants that are active on the hub to proactively provide access to their data.
“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,” said Eric Moen, Head of ESG at MSCI. “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.”
MSCI Private Company Data Connect will leverage the template developed by the ESG Integrated Disclosure Project (“ESG IDP”) – an industry initiative bringing together leading lenders in the private credit and syndicated loan markets to improve transparency and accountability. The ESG IDP was formed by the Alternative Credit Council, the private credit affiliate of the Alternative Investment Management Association, the Loan Syndications and Trading Association, and the United Nations-supported Principles for Responsible Investment, in co-operation with a group of leading alternative asset managers, credit investors and a coalition of market stakeholders.
“By working with MSCI and Persefoni to support the establishment of a platform that leverages the ESG IDP, we’re able to better respond to the unique challenges and opportunities of the private markets,” said Michael Kashani, Managing Director, Head of ESG Credit at Apollo, and Inaugural Chair of the ESG IDP Executive Committee. “Increasing standardization and driving transparency on material ESG factors reinforces our focus on value creation and meeting stakeholder needs.”
MSCI Private Company Data Connect also helps companies without emissions data simplify carbon accounting through software from Persefoni AI Inc. (“Persefoni”), which provides technology to businesses and financial institutions. The Persefoni AI-powered, carbon measurement and reporting tool, Persefoni Pro, is a guided platform available for free to MSCI Private Company Data Connect users.
“This collaboration targets a pivotal area in today's corporate sustainability efforts – closing the carbon emissions reporting gap for both public and private companies,” said Kentaro Kawamori, CEO and Co-Founder of Persefoni. “This initiative represents a material stride towards enhancing transparency in private assets, a sector where data accessibility has traditionally been challenging.”
MSCI Private Company Data Connect is available on MSCI ONE, a cloud-based technology platform that provides investors and companies access to MSCI’s portfolio of products and solutions.
About MSCI Inc.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or performance and involve risks that may cause actual results or performance differ materially and you should not place undue reliance on them. Risks that could affect results or performance are in MSCI’s Annual Report on Form 10-K for the most recent fiscal year ended on December 31 that is filed with the SEC. MSCI does not undertake to update any forward-looking statements. No information herein constitutes investment advice or should be relied on as such. MSCI grants no right or license to use its products or services without an appropriate license. MSCI MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE WITH RESPECT TO THE INFORMATION HEREIN AND DISCLAIMS ALL LIABILITY TO THE MAXIMUM EXTENT PERMITTED BY LAW
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206550527/en/
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