Investor-focused decisions support tools and services company MSCI announced the launch of Total Portfolio Footprinting, a new solution to help financial institutions measure carbon emissions across their lending and investment portfolios.
Total Portfolio Footprinting enables institutions to set and manage reduction targets for their financed emissions against a baseline, aligning this with their net zero commitments. It also allows institutions to gain a better understanding of the impact of the greenhouse gas (GHG) emissions they are financing, and inform them on how to focus capital on more sustainable business practices.
The solution includes climate data and models to help users align with key climate and sustainability measurement and reporting standards, including the Taskforce for Climate Related Disclosure (TCFD) framework, Partnership for Carbon Accounting Financials (PCAF), National Association of Insurance Commissioners (NAIC) and European Insurance and Occupational Pensions Authority (EIOPA) standard.
Eric Moen, Global Head of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and Climate at MSCI, said:
“Total Portfolio Footprinting creates a snapshot of financed emissions across asset classes and subsets, giving institutions clearer visibility over where they stand today in relation to their climate commitments and obligations. Moving forward, Total Portfolio Footprinting will help them to measure against this baseline, focus capital on activities with more sustainable business practices, manage their climate impact and fulfill their crucial role in the global transition to a low carbon economy.”
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