What are the factors or scoring criteria in MSCI (Morgan Stanley Capital International) ESG ratings?

MSCI ESG Ratings is a system that evaluates the environmental, social, and governance (ESG) performance of companies and real estate assets. MSCI stands for Morgan Stanley Capital International. MSCI is a global provider of investment decision support tools, including indices, portfolio risk and performance analytics, and ESG research and ratings. MSCI is widely recognised as a leading provider of investment tools and data to institutional investors, asset managers, financial advisors, and corporations.

The MSCI ESG Ratings framework uses a combination of quantitative and qualitative data to provide a rating of a company's or asset's ESG performance. The scoring criteria for MSCI ESG Ratings is broken down into three main categories: environmental, social, and governance.

1. Environmental: The environmental category evaluates a company's or asset's impact on the environment, including greenhouse gas emissions, energy efficiency, water usage, waste management, and biodiversity. This category includes factors such as carbon intensity, exposure to environmental risks, and the company's approach to climate change mitigation and adaptation.

2. Social: The social category evaluates a company's or asset's impact on stakeholders, including employees, customers, suppliers, and the local community. This category includes factors such as labor practices, human rights, community relations, product safety, and customer privacy.

3. Governance: The governance category evaluates the quality of a company's or asset's governance structures and processes, including board independence, executive compensation, shareholder rights, and transparency. This category includes factors such as board diversity, anti-corruption policies, and accounting practices.

Within each of these three categories, MSCI ESG Ratings evaluates various sub-factors to determine a company's or asset's overall ESG performance. For example, the environmental category includes sub-factors such as greenhouse gas emissions, energy efficiency, and waste management. The social category includes sub-factors such as labor practices, human rights, and community relations. The governance category includes sub-factors such as board independence, executive compensation, and shareholder rights.

The MSCI ESG Ratings framework is designed to provide investors with a comprehensive view
 

Social