Moody’s and MSCI Establish Strategic Partnership to Enhance ESG Transparency and Risk Solutions
Moody’s Corporation and MSCI Inc. have announced a transformative strategic partnership aimed at advancing transparency and delivering data-driven risk solutions.
In a groundbreaking agreement unveiled today in New York, Moody’s and MSCI will harness their respective strengths to enhance visibility into ESG (Environmental, Social, and Governance) and sustainability factors, empowering more informed decision-making across global markets.
Under the terms of the partnership, Moody’s will integrate MSCI’s renowned sustainability data and models, widely utilized by the world’s largest asset managers and owners. This collaboration includes MSCI’s leading ESG ratings and comprehensive content, which assess how companies manage financially significant ESG risks and opportunities. Over time, Moody’s plans to transition its existing ESG data and scores to leverage MSCI’s sustainability offerings, enhancing solutions for its clients in banking, insurance, and corporate sectors.
In reciprocity, MSCI will gain access to Moody’s Orbis database, a premier source of firmographic data covering over 500 million entities globally. This access will enable MSCI to expand its ESG coverage for private companies. Additionally, the partnership will explore leveraging Moody’s private company data and credit scoring models to provide deeper insights into the private credit market.
Rob Fauber, President & CEO of Moody’s, expressed enthusiasm about the collaboration, emphasizing the mutual benefits: “This partnership with MSCI, a leader in global investment solutions and a pioneer in ESG and sustainability, is a significant win-win. Moody’s clients will gain access to MSCI’s exceptional ESG content, while MSCI clients will benefit from Moody’s robust risk assessment expertise and insights.”
Henry A. Fernandez, Chairman and CEO of MSCI, echoed these sentiments, highlighting the strategic importance of sustainability and private assets in today’s investment landscape: “We are delighted to partner with Moody’s to offer MSCI’s ESG and sustainability data to Moody’s global client base. This agreement underscores our commitment to expanding ESG coverage for private companies and delivering enhanced solutions across various client segments and asset classes.”
The partnership reaffirms Moody’s commitment to its Ratings division, which will continue to provide transparency into the material impacts of ESG factors through proprietary Credit Impact Scores and Issuer Profile Scores. Moody’s Ratings will also maintain its sustainable finance offerings, including Second Party Opinions and Net Zero Assessments, alongside its leading climate solutions.
Financial terms of the agreement were not disclosed.