MSCI Inc. (MSCI) and Moody's Corporation (MCO) have announced a strategic partnership aimed at enhancing transparency and providing data-driven risk solutions.
According to the agreement, Moody's will deliver MSCI's Environmental, Social, and Governance (ESG) and sustainability data to its extensive global customer base. The financial specifics of the partnership remain undisclosed.
Additionally, MSCI will tap into Moody's Orbis database, a premier source of firmographic information with data on over 500 million entities, to broaden its ESG coverage for private companies.
This agreement, formalized last week, integrates MSCI's ESG ratings and content that evaluate how companies manage financially significant ESG risks and opportunities.
MSCI's ESG Rating assesses a company's ability to withstand long-term, industry-specific ESG risks, as detailed on its website.
Moody's plans to utilize MSCI's sustainability data and models, which are commonly employed by asset managers and asset owners.
Over time, Moody's aims to transition its current ESG data and scores to incorporate MSCI's sustainability content, offering these insights through a variety of solutions tailored for customers in banking, insurance, and corporate sectors.
Furthermore, both companies will seek to develop solutions that leverage Moody's private company data and credit scoring models to provide deeper insights into the private credit market.
It is important to note that this partnership does not affect Moody's Ratings, the credit rating agency. Moody's Ratings will continue to deliver transparency regarding the material impacts of ESG factors on its credit ratings through its proprietary Credit Impact Scores and Issuer Profile Scores.
