MSCI launches platform for private companies’ sustainability, climate data

FINANCIAL data provider MSCI on Wednesday (Feb 7) launched a new platform that will allow private companies to self-report their sustainability and climate disclosures to investors.

Called the MSCI Private Company Data Connect, the platform enables companies to retain ownership of their self-reported data. The data available will be based on the template developed by the ESG Integrated Disclosure Project, an industry initiative to improve transparency in the private credit and syndicated loan markets.

Companies can approve or decline data requests from investors and lenders directly on the platform, or proactively look up market players to provide them with data.

Meanwhile, investors can use the platform to conduct due diligence as well as engage with their portfolio companies and set targets for them. MSCI will also provide the platform’s users with access to Persefoni Pro, a carbon measurement and reporting tool.

MSCI’s new platform comes amid growing demand from global regulators and clients for more data on the overall sustainability of investments by funds’ general partners, said Eric Moen, head of ESG at MSCI.

The platform is “designed to give investors similar levels of insight into private companies’ sustainability practices with which they assess publicly traded corporations”, he added.

SEE ALSO

Crucial for investors to price in climate risks

Cybersecurity – more than just a tech issue, it’s an ESG concern

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Kentaro Kawamori, chief executive and co-founder of Persefoni, similarly noted that data accessibility has traditionally been an issue in the private market. “This initiative represents a material stride towards enhancing transparency in private assets,” he said.