MSCI Inc. (NYSE:MSCI), a leading provider of investment decision support tools worldwide, announced today that FactSet Research Systems, (NYSE: FDS | NASDAQ: FDS), a world-recognized provider of financial data and analytical software for investment professionals, has integrated and made available MSCI ESG Research data and ratings on the FactSet platform.
For the first time, FactSet clients can now fully leverage MSCI ESG Research data in their analysis through FactSet Portfolio Analysis, Universal Screening, Data Downloading, and MS Office integration. This gives users the ability to include ESG factors throughout their investment process including portfolio construction and optimization, back-testing, and performance and risk attribution.
MSCI ESG Research analysis and ratings in FactSet includes three separate approaches:
Intangible Value Assessment (IVA
) includes ratings and analysis of a company's management of environmental and social risk factors that can reveal ESG-driven investment risks or opportunities that may not be captured by conventional analysis.
analyzes and monitors ‘ESG controversies’ and violations of global norms such as the UN Global Compact.
Business Involvement Screening Research
allows investors to screen out companies involved in countries such as Sudan and Iran, with activities such as tobacco or weapons, or that violate religious mandates.
Patrick Locke, Vice President, FactSet Product Development said, “There is growing demand from asset managers and institutional investors to integrate ESG information into the investment process to meet ESG requirements set by the Principles of Responsible Investment (PRI). We are pleased to offer MSCI’s suite of ESG research, analysis and ratings tools to our users.”
Remy Briand, Head of Index and MSCI ESG Research added, “The goal of MSCI ESG Research is to assist asset managers in meeting the growing institutional need for effective ESG integration in the investment process. We provide broad and global coverage as well as in-depth research across asset classes. Following the integration of our analysis and ratings into FactSet global asset managers and asset owners can now better understand the ESG-driven investment risks and opportunities across broad and multi-asset class portfolios.”