A Liberum analyst has hit out at MSCI over its ESG ratings methodology, warning that they may feature “monetary conflicts of interest” from its index business.
In a Substack blog post yesterday (13 November), investment strategist Joachim Klement cited a study from Columbia and Emory University published in September titled 'ESG Ratings of ESG Index Providers', which found that ESG ratings from MSCI may be biased. In the paper, the authors said the results "raised concerns about the credibility of ESG ratings and underscores the need to understand the incentives that shape the production of ESG ratings". UK to outline regulatory rules for ESG ratings industry as early as January 2024 Comparing MSCI ESG Research, which receives most of its...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
