Major index and research provider MSCI has acquired Zurich-based environmental data firm Carbon Delta, the latest acquisition of a smaller climate data group by a larger market player.
Terms of the deal weren’t disclosed.
“Combining Carbon Delta’s scenario analysis and MSCI’s products is what institutional investors have been asking for”
Carbon Delta, founded in 2015, has provided climate risk data for the likes of Axa and Aviva. Earlier this year, the UN Environment Programme Finance Initiative (UNEP FI) and Carbon Delta worked together on a major report on scenario analysis for climate risk assessment with 20 institutional investors.
MSCI’s acquisition will see Carbon Delta’s proprietary Climate Value-at-Risk (CVaR) model become the MSCI Climate Value-at-Risk. The tool calculates the impact of climate change on a company’s market value.Remy Briand, Head of ESG at MSCI, said: “We believe climate change will become one of the most important investment factors over the long term.
“Institutional investors should be able to analyse the exposure of their portfolios to climate risk while also being able to report on their climate strategy.”
In June, NYSE-listed MSCI launched a range of new indices focused on climate.
Carbon Delta’s Zurich office will act as MSCI’s Climate Risk Centre that will develop climate change risk analytics and tools.
“Carbon Delta has aimed to create the best climate change scenario analytics for financial institutions,” said Dr. Oliver Marchand, CEO of Carbon Delta. “We are very excited to join forces with MSCI to mature and grow our products. Combining Carbon Delta’s scenario analysis and MSCI’s products is what institutional investors have been asking for.”
In July, credit ratings and research giant Moody’s bought a majority stake in Four Twenty Seven – a US-based specialist in climate risk modelling – for an undisclosed sum. Trucost was acquired by S&P in 2016.