NEW YORK & LONDON & HONG KONG–(BUSINESS WIRE)–MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, today launched a new solution to help real estate investors assess and manage their exposure to climate change.
MSCI Real Estate Climate Value-at-Risk, which follows the launch of MSCI Climate Value-At-Risk (Climate VaR) in February this year, builds on MSCI’s commitment to enable investors to effectively manage and plan for risk. It provides a forward-looking and return-based valuation assessment to measure climate-related risks for real estate assets in an investment portfolio.
By calculating the financial risks from both changing legislation due to climate action (Transition Risk) and the extreme weather impacts caused by climate change (Physical Risk), per real estate asset and per scenario, MSCI Real Estate Climate Value-at-Risk provides a framework for investors – including investment managers, asset owners, banks and insurers – to improve portfolio performance, risk management, regulatory reporting and progress towards broader sustainability goals. The framework is closely aligned to the G20’s Financial Stability Board’s Taskforce on Climate-Related Disclosures (TCFD).
Remy Briand, Head of ESG at MSCI, said: “MSCI has been a leader in helping investors incorporate climate change considerations in their investment process for over 20 years. Over this time, we have witnessed increased urgency from investors to quantify their climate risk exposures when constructing and analyzing portfolios.”
He added, “With this new offering, MSCI offers climate solutions across every area of our business, from ESG Research to Analytics, Index, and now Real Estate. Investors can today gain a fully representative picture of climate risks and opportunities across assets through a methodologically consistent model, with the aim of improving their own investments and empowering them to invest in a way that meaningfully tackles climate change.”
Jay McNamara, Head of Real Estate at MSCI, said: “Private real estate, as a long-term asset class, is particularly vulnerable to climate-related events. Our research has shown that the potential impact for real estate investors from climate events is far reaching and spans assets and geographies. Investors could face increased operational costs including property repairs, higher insurance costs, property devaluation and even the complete loss of property.
“As more global investors are increasing allocations to real estate and other private assets, there is a growing need to identify and understand financial risks from climate change and take necessary action for risk management, portfolio performance optimization and regulatory reporting purposes. With this solution, MSCI provides these investors with the ability to not only quantify their risk exposures, but to scenario plan and take action in mitigating these risks.”
The MSCI Climate VaR was developed from MSCI’s Climate Risk Center in Zurich. The aim of the center is to serve as a focal point for the development of climate change risk analytics and tools, and to forge strong partnerships with leading academic and research institutions around the world to advance the use of climate science for financial risk analysis.
About MSCI ESG Research Products and Services
MSCI ESG Research products and services are provided by MSCI ESG Research LLC, and are designed to provide in-depth research, ratings and analysis of environmental, social and governance-related business practices to companies worldwide. ESG ratings, data and analysis from MSCI ESG Research LLC are also used in the construction of the MSCI ESG Indexes. MSCI ESG Research LLC is a Registered Investment Adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 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.
The information contained herein (the “Information”) may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI ESG Research. The Information may not be used to verify or correct other data, to create any derivative works, to create indexes, risk models, or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. MSCI ESG Research is provided by MSCI Inc.’s subsidiary, MSCI ESG Research LLC, a Registered Investment Adviser under the Investment Advisers Act of 1940. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indexes or other products, have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body. None of the Information or MSCI index or other product or service constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy. Further, none of the Information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF MSCI INC. OR ANY OF ITS SUBSIDIARIES OR ITS OR THEIR DIRECT OR INDIRECT SUPPLIERS OR ANY THIRD PARTY INVOLVED IN THE MAKING OR COMPILING OF THE INFORMATION (EACH, AN “INFORMATION PROVIDER”) MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH INFORMATION PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE INFORMATION PROVIDERS HAVE ANY LIABILITY REGARDING ANY OF THE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited. Privacy notice: For information about how MSCI ESG Research LLC collects and uses personal data concerning officers and directors, please refer to our Privacy Notice at https://www.msci.com/privacy-pledge.
Salli Schwartz +1 212 804 5306
Sam Wang +1 212 804 5244
Melanie Blanco +1 212 981 1049
Rachel Lai +852 2844 9315
MSCI Global Client Service
EMEA Client Service + 44 20 7618.2222
Americas Client Service +1 888 588 4567 (toll free)
Asia Pacific Client Service + 852 2844 9333
Powered by WPeMatico