A Great ESG Ratings Corporate Search Tool
Understanding ESG
In the market, we can find endless tools that can help us identify and learn how companies adopt ESG metrics.
I prefer tools that can easily explain how to identify concepts, actions, outcomes, and data.
Doing my research — and learning about ESG — I found an exciting tool, the ESG Ratings Corporate Search Tool of MSCI, Inc.
About MSCI, Inc.
MSCI Inc. is an American finance company with headquarters in New York City. It is a global provider of equity, fixed income, market indexes, multi-asset portfolio analysis tools, and ESG products.
Revenue: 1.69 billion USD (2020)
Number of employees: 3,300
Founded: 1969
To understand the tool, I would like to share three sections where MSCI shows us each category of critical issues relative to the ESG ratings.
LAGGARD: A company lagging its industry based on its high exposure and failure to manage significant ESG risks — ( Red Color )
AVERAGE: A company with a mixed or unexceptional track record of managing the most significant ESG risks and opportunities relative to industry peers — ( Yellow Color )
LEADER: A company leading its industry in managing the most significant ESG risks and opportunities — ( Green Color ).
Note from MSCI: “Percentiles were calculated based on the full universe of companies with ESG Ratings (~8,500 companies), which includes approximately 5,600 additional small-cap and private companies that are not constituents of the MSCI ACWI Index. The Industry Adjusted Score corresponds to a rating between best (AAA) and worst (CCC). These assessments of company performance are not absolute but are explicitly intended to be relative to the standards and performance of a company’s industry peers.”
The Final Industry Adjusted Company Score is mapped to a Letter Rating.
Want to learn more about ESG? Listen to my conversation with Ioannis Ioannou, Associate Professor of Strategy and Entrepreneurship at London Business School.
