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2024-02-06 – https://www.esgtoday.com/msci-launches-sustainability-data-reporting-solution-for-private-markets/?utm_source=rss&utm_medium=rss&utm_campaign=msci-launches-sustainability-data-reporting-solution-for-private-markets - ESGNA

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Investment data and research provider MSCI announced today the launch of MSCI Private Company Data […]]

MSCI Launches Sustainability Data Reporting Solution for Private Markets – ESG Today

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MSCI Launches Sustainability Data Reporting Solution for Private Markets

Mark Segal

February 6, 2024

Investment data and research provider MSCI announced today the launch of MSCI Private Company Data Connect, a new platform aimed at collecting and communicating sustainability and climate data from private companies to general partner investors and lenders.

According to Eric Moen, Head of ESG at MSCI, the launch of the new solution comes amidst “an uptick in global regulator and client demand for more reporting and data around the overall sustainability of GPs’ investments,” with the platform aimed at providing investor with insights into sustainability practices at private companies similar to those used to assess public companies.

Moen added:

“As companies’ sustainability and climate considerations are increasingly being used in capital allocation, lending, and other decision-making processes, investors need an efficient and effective way to share and analyze this critical data.”

The new solution enables companies to report their data to investors through a secure, digital hub, with the ability to approve or decline data requests from GPs and lenders directly on the platform, in addition to allowing companies to search for and proactively provide data to institutions and market participants that are active on the hub.

The platform leverages the template developed by the ESG Integrated Disclosure Project (ESG IDP), a tool aimed at providing a standard format for ESG disclosures for private markets, founded by partners including Apollo Global Management and Oak Hill Advisors. The tool also provides users with access to an AI-powered, carbon measurement and reporting tool provided by Climate Management & Accounting Platform (CMAP) provider Persefoni.

Michael Kashani, Managing Director, Head of ESG Credit at Apollo, and Inaugural Chair of the ESG IDP Executive Committee, said:

“By working with MSCI and Persefoni to support the establishment of a platform that leverages the ESG IDP, we’re able to better respond to the unique challenges and opportunities of the private markets. Increasing standardization and driving transparency on material ESG factors reinforces our focus on value creation and meeting stakeholder needs.”

Kentaro Kawamori, CEO and Co-Founder of Persefoni, added:

“This collaboration targets a pivotal area in today’s corporate sustainability efforts – closing the carbon emissions reporting gap for both public and private companies. This initiative represents a material stride towards enhancing transparency in private assets, a sector where data accessibility has traditionally been challenging.”

Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.

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