ESG: MSCI Chief Fernandez Warns ESG is a “Permanent Change in the Way Capitalism Works”

January 23, 2020 | ESG and Sustainability, News
https://dailyalts.com/wp-content/uploads/2020/01/landscape-4684217_640-MSCI-ESG.jpg

“We’re sounding the alarm bells, “ said MSCI chairman and CEO Henry Fernandez on CNBC’s Squawk on the Street.

MSCI is a global index and fund provider. It’s chairman and CEO’s remarks regarding the potential and convulsive effect of ESG on global investing echo those of BlackRock CEO Larry Fink. Fernandez warned that institutional portfolios could dramatically underperform if ESG norms led to common repricing and reallocation of assets globally.

“We are sounding the alarm bells that if you are an investment institution and you’re not embracing this and taking it into account, it’s going to be at your own peril,” said Fernandez as reported by CNBC.

MSCI’s Fernandez: ESG not just a fad

MSCI should know because it rates more than 15,000 companies on ESG criteria. It also published “Principles of Sustainable Investing,”  setting forth its views and recommendations on the core principles and best practices four ESG integration by investors globally.

In the document, MSCI warned of a convergence of factors such as climate change, social attitudes, institutional governance, and technological innovation. This convergence would “significantly impact the pricing of financial assets and the risk and return of investments and lead to a large-scale reallocation of capital over the next decades.”

ESG ratings

The company is working on making ESG ratings available by end of April. These will cover all its equity indices as well as the big mutual funds.

According to MSCI’s Fernandez, the concept is still an evolution, but would eventually become very data-driven. However, ESG is not a fad, but a “permanent change in the way capitalism works,” he warned.

Related  Emission-Free Friday: Here are the Latest Funds to Push for Carbon Neutral

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/11/mockup-5288033_640.jpg
Alternative Investments: Accelerate Launches An ETF For Alternative Assets
November 25, 2020     Alternative Investments, News

Accelerate Financial Technologies launched its OneChoice Alternative Model Portfolio in September. Aimed at hard-pressed advisors and portfolio managers, the strategy offered a quick and easy way to put together a…

https://dailyalts.com/wp-content/uploads/2020/11/bitcoin-4852534_640.jpg
Digital Assets: Japanese Financial Group SBI Launches Crypto Lending
November 25, 2020     Digital Assets, News

SBI Group (TYO: 8473) is launching a crypto lending service through SBI VC Trade, its crypto-focused exchange subsidiary. SBI said it will initially allow customers to tender only bitcoin (BTC),…

https://dailyalts.com/wp-content/uploads/2020/11/screenshot-www.hippo_.com-2020.11.25-17_21_34.jpg
FinTech: Hippo Insurance Gets $350M Funding From Mitsui Sumitomo Insurance
November 25, 2020     FinTech, News, Venture Capital

Hippo, the home insurance unicorn, announced Tuesday an investment of $350 million from Mitsui Sumitomo Insurance Company, Limited, a subsidiary of MS&AD Insurance Group Holdings, Inc. In July, Hippo raised…

https://dailyalts.com/wp-content/uploads/2020/11/carrots-4545665_640.jpg
Venture Capital: Astanor Ventures Launches $325M Fund For Impact Investing in Agtech

Based in Luxembourg, Astanor Ventures combines capital, technology, and sector expertise to invest in businesses that build regenerative, scalable, and nourishing food solutions. Using this philosophy, Astanor has invested in…