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Research - FEBRUARY 6, 2020

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MSCI launches solution that enables investors to assess exposure to climate risk

by Released

MSCI has launched a solution to help investors assess their exposure to climate-related risks and opportunities.

The MSCI Climate Value-At-Risk (Climate VaR), provided by MSCI ESG Research LLC, provides forward-looking and return-based valuation assessments to measure the potential impact of climate change on company valuations. It provides financial institutions — including investment managers, banks, asset owners and insurers — with the means to identify assets that may be at risk from the worst effects resulting from climate change, while helping to identify innovative, low-carbon investment opportunities, through security specific modeling.

The tool provides insights into the potential stressed market valuation of investment portfolios and downside risks, translating climate-related costs into potential valuation impacts. The tool covers more than 10,000 companies, assessing all their associated equities and corporate bonds within the analysis.

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