MSCI and Moody's announced on the 2nd a groundbreaking strategic cooperation agreement, in which both parties will fully leverage their respective strengths to enhance transparency in ESG and sustainable development for the market, and assist investors in making wiser decisions.
It is reported that Moody's will adopt MSCI sustainable data and models widely used by the world's largest asset management company and asset owners. According to the agreement reached last week, Moody's will introduce MSCI's ESG rating and information, mainly used to measure the company's management level in financial ESG risks and opportunities. After adopting MSCI's data, Moody's plans to gradually shift from providing its existing ESG data and ratings to providing MSCI's sustainable information, serving customers in the banking, insurance, and corporate sectors through a series of solutions.
MSCI will activate Moody's Orbis database to expand its ESG data coverage for private enterprises. The Moody's Orbis database is a leading global enterprise information database, covering data from over 500 million companies. In addition, MSCI and Moody's will also explore the development of solutions based on Moody's private enterprise data and credit scoring models, in order to provide deeper insights into the private credit market.
Moody's President and CEO Rob Fauber said, "Moody's is pleased to collaborate with MSCI. MSCI is a leader in providing solutions to the global investment community and a pioneer in ESG and sustainable development.". This is a truly win-win collaboration where Moody's clients can access MSCI's renowned ESG information, and MSCI's clients will benefit from Moody's globally leading risk assessment expertise, data, and insights
MSCI Chairman and CEO Henry Fernandez said, "We are delighted to collaborate with Moody's to provide MSCI's ESG and sustainable data to its global customer base. Sustainable development remains one of the most important trends in reshaping the global investment landscape, and shifting asset allocation to private equity is another major trend. This collaboration will expand the coverage of MSCI's ESG data at the private enterprise level and provide enhanced solutions for various customer groups and asset categories."
The relevant person in charge stated that this cooperation will not have any impact on Moody's Ratings, a credit rating agency. Moody's Ratings will continue to transparently showcase the significant impact of ESG factors on its credit rating through its proprietary credit impact rating and issuer profile rating. Moody's Ratings will continue to provide sustainable financial products, including third-party opinions and net zero emission assessments. In addition, Moody's remains committed to providing customers with market leading climate solutions.