This Week’s Tech and Tool News: S&P, State St Collaborate on Climate

ESG Investor’s weekly round-up of news on technology and tools in the sustainable investing sector, including State Street, LSEG, OS-Climate, Tradeweb, Climate Bonds Initiative and MSCI.

S&P Global Trucost has partnered with State Street, uniting State Street’s ESG Risk Analytics and Reporting capabilities with Trucost’s climate data and analytics capabilities. State Street will be overlaying Trucost’s data intelligence concerning the prevalent risks and opportunities of climate change to better build on its existing client-focused ESG services. State Street clients will have access to Trucost environmental data via State Street platforms, helping them more easily track their carbon footprint across the portfolio. Recent Trucost research found 66% of major global companies will have at least one asset at high physical risk under its high impact climate change scenario for 2050, most likely from water stress and wildfires. Trucost will be able to integrate State Street climate data intelligence into their clients’ decision-making and reporting. In particular, State Street’s ESG Risk Analytics aids clients in their risk management, metrics and target reporting capabilities in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. “Our ESG solutions, coupled with Trucost’s renowned climate data resources, allow State Street to deliver clients the critical data required to help them meet challenging global ESG regulatory guidelines and investor expectations,” said Brenda Lyons, Executive Vice President and Global Head of Asset Servicing Products at State Street.

The London Stock Exchange Group (LSEG) has joined non-profit platform OS-Climate, alongside BNP Paribas and the Net-Zero Asset Owner Alliance. Founded by the Linux Foundation, OS-Climate is a platform dedicated to the development of open data and open-source analytics for climate risk management, finance and investing. Other members include Allianz, Federated Hermes, Microsoft and Amazon. LSEG has previously collaborated with the Transition Pathway Initiative (TPI) and Climate Action 100+ on the development of climate-related data. “OS-Climate’s open-source model is a potential solution to break down silos and avoid duplication that happens when different parties try to reinvent the wheel on climate risks. We should really be working toward common climate objectives with clear standards and frameworks as fast as we can,” said Arne Staal, CEO of FTSE Russell.

Data and index provider MSCI has committed to the goal of net-zero greenhouse gas (GHG) emissions before 2040. This follows MSCI’s prior pledge to reduce its Scope 1 and 2 emissions by 50% and Scope 3 by 20% by 2035. The firm has pledged to reduce emissions by accelerating carbon-reduction initiatives focusing on the most material and controllable emissions, like energy consumption, while further encouraging a flexible work environment for MSCI employees – allowing them to work from home and encouraging low-carbon options for business travel. MSCI will also be engaging with suppliers to tackle emissions throughout its supply chain. “MSCI’s commitment reflects our obligation to be good stewards of the capital that long-term shareholders entrust to our company. MSCI’s efforts to achieve net-zero before 2040 will drive a transformation of our company, culture and our actions to the benefit of all our stakeholders,” said Henry Fernandez, MSCI Chairman and CEO.

Global electronic market operator Tradeweb has joined the investor-focused non-profit Climate Bonds Initiative’s Partners Programme. The programme is a global movement that aims to mobilise bond markets for climate change solutions. Tradeweb aims to promote the visibility and accessibility of green bond trading across a range of asset classes by leveraging Climate Bonds data to increase transparency. The partnership gives market participants valuable insight into the trading activities of green and other sustainable securities compared to non-green and unsustainable counterparts.

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

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