MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Welcome to your CDP Climate Change
Questionnaire 2019
C0. Introduction
C0.1(C0.1) Give a general description and introduction to your organization.
MSCI Inc. (“MSCI”) is a leading provider of critical decision support tools and services for the
global investment community. We power better investment decisions by enabling clients tounderstand and analyze key drivers of risk and return and confidently build more effective
portfolios. We create industry-leading research-enhanced solutions (i.e., the usage of our
products and/or services by our clients to help them achieve their specific investment
objectives) that clients use to gain insight into and improve transparency across the investment
process. We are able to do this by leveraging our knowledge of the global investment process
and our expertise in research, data and technology in order to deliver actionable solutions forour clients. We are dynamic and flexible in the delivery of our content and capabilities, such as(i) our indexes, (ii) portfolio construction tools and risk management applications, (iii)
Environmental, Social and Governance (ESG) research and ratings, and (iv) real estatebenchmarks, analytics services and market insights, much of which can be accessed by ourclients through multiple channels and platforms.
As a client-centric company, we seek to bring clarity to dynamic and increasingly complex
financial markets and offer innovative solutions to help our clients adapt to a fast-changing
marketplace. As the needs of our clients change, so do our offerings. Our clients use ourofferings in a variety of ways for their most important investment activities across multiple asset
classes to more efficiently implement their investment strategies and to integrate ESG
considerations into their investment processes.
Our ESG products are provided by MSCI ESG Research LLC (“MSCI ESG Research”), a
Registered Investment Adviser under the Investment Advisers Act of 1940. Through ESG
research and applications we deliver in-depth research, ratings and analysis of theenvironmental, social and governance-related business practices of over 7,800 companies(approximately 14,000 issuers including subsidiaries) worldwide. Our research provides criticalinsights that can help institutional investors identify risks and opportunities that can impact theperformance of their investments. As of December 31, 2018, ESG Research products wereused by over 1,200 investors worldwide. By helping our clients pursue sustainable and socially
responsible investing strategies, our role is important in facilitating investment decisions thatcan ultimately lead to a better world.
For example, climate change is a key issue for many investors. Our climate change teamsupports clients by providing products that help them measure and report on climate risk
exposure, implement low carbon and fossil fuel-free investment strategies, and integrate
climate change research into their risk management processes. These products include climate
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019risk metrics, carbon portfolio reporting, low carbon indexes and tools to identify clean-tech andenvironmentally-oriented companies.
The sustainable investments market is increasing, and we offer products and services tosupport investment processes that incorporate sustainability considerations. Products, services
and insights that help investors adopt an ESG investing strategy include:









In support of the trend towards greater investment transparency, as of December 31,
2018 MSCI ESG Research covered over 31,000 mutual funds and ETFs. MSCItransparency, MSCI ESG Fund Metrics measures the ESG characteristics of portfolio
holdings and rank or screen funds based on diverse factors including sustainable
impact, values alignment and ESG risks.
To help investors identify the extent of companies' involvement in activities with positivesocial and environmental impacts, MSCI ESG Sustainable Impact Metrics allows
investors to identify companies with products or services that address at least one of
the major social and environmental challenges as defined by the UN Sustainable
Development GoalsMSCI ESG Indexes utilize information from, but not provided by,
MSCI ESG Research.
We published a series of research papers called “Foundations of ESG Investing
To enable investors to incorporate ESG beliefs throughout the entire investment
process (asset allocation, portfolio construction, risk management, performance
attribution), we integrated MSCI ESG Research ratings, data and indexes into most of
our Analytics portfolio and risk management systems.
To help institutional investors benchmark ESG investment performance, issue indexbased investment products, as well as measure and report on ESG mandates, weconstantly innovate our ESG index products.

For more information visit www.msci.com.

C0.2(C0.2) State the start and end date of the year for which you are reporting data.

Row
1

Start dateEnd date

Indicate if you are providing emissions data for pastreporting years

January 1,
2018

December 31,
2018

No

C0.3
(C0.3) Select the countries/regions for which you will be supplying data.
Australia
BrazilCanadaChina
China, Hong Kong Special Administrative Region
FranceGermany
Hungary
India
Italy
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Japan
MexicoNetherlands
Philippines
Republic of Korea
Singapore
South Africa
SwedenSwitzerland
Taiwan, Greater China
United Arab Emirates
United Kingdom of Great Britain and Northern Ireland
United States of America

C0.4(C0.4) Select the currency used for all financial information disclosed throughout yourresponse.
USD

C0.5(C0.5) Select the option that describes the reporting boundary for which climaterelated impacts on your business are being reported. Note that this option shouldalign with your consolidation approach to your Scope 1 and Scope 2 greenhouse gas
inventory.
Operational control

C1. GovernanceC1.1(C1.1) Is there board-level oversight of climate-related issues within yourorganization?
Yes

C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on theboard with responsibility for climate-related issues.
Position ofindividual(s)Please explain

Chief Executive Our CEO serves as the Chairman of MSCI’s Board of Directors (“Board”), theOfficer (CEO)highest governance and oversight body at MSCI, comprised of independent nonemployee directors, other than our CEO. In this position, he is able to provide

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019MSCI with unified leadership and direction and holds the highest position of
accountability, responsibility, and oversight over MSCI’s operations, including any
associated climate-related issues that might arise from time to time.
Board-levelcommittee

The Nominating and Corporate Governance Committee of the Board (“NCG
Committee”) is a standing committee of the Board comprised of all independent
non-employee directors. As stated in its Charter, the NCG Committee is
responsible for overseeing environmental, social, and governance matters as they
pertain to MSCI’s business and long-term strategy. The Chair of the NCG
Committee provides a report each quarter to the full Board, and as material ESG
matters are discussed by the NCG Committee, such matters are also reported to
the full Board. Beginning in 2019, the NCG Committee receives updates twice ayear from MSCI’s Chief Responsibility Officer (“CRO”), who leads the Corporate
Responsibility Committee (“CRC”), a management-level committee responsible for
ESG disclosures and management practices.

Board-levelcommittee

The Audit Committee, a standing committee of the Board comprised of all
independent non-employee directors, is responsible for reviewing (i) MSCI’s key
business risks, (ii) policies and practices for risk governance, risk assessment, andrisk management, and (iii) steps taken to monitor and mitigate such risks. In
conducting its review of MSCI’s material risks, it is expected that the Audit
Committee would be informed of climate-related risks impacting MSCI’s operations
if such risks ever reached the level of materiality that would result in a significant
impact to MSCI’s operations or financial results (e.g. impact of climate disasters on
IT infrastructure / business continuity, etc.).

Board-levelcommittee

The Strategy and Finance Committee, a standing committee of the Board
comprised mostly of independent non-employee directors, provides managementwith guidance on MSCI’s business strategy, which may include sustainabilityrelated opportunities (e.g. climate-related products/services).

C1.1b(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency with
Governancewhich climatemechanisms into
related issues are which climatea scheduled
related issues areagenda item
integrated

Please explain

Scheduled – some Setting performance The Compensation & Talent Management Committee
meetings
objectives(“C&TM”), a standing committee of the Board comprisedof independent non-employee directors, is responsible forreviewing, approving, and assessing the attainment ofcorporate goals and objectives to be used in setting thecompensation for our Company’s Executive Committee
members, which includes our CEO and CRO. Annually,
the C&TM meets to set such goals and again to evaluate
their achievement. Under our Company’s annual cash
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

incentive plan, executives receive cash bonuses basedon the attainment of the level of financial performance
metrics (weighted at 70%) and individual key
performance indicators (“KPIs”) (weighted at 30%). For
their 2019 KPIs, each of our CEO and CRO haveincorporated into their KPIs the goal of championing astrong ESG / corporate responsibility platform throughout
MSCI.
Scheduled – some Reviewing andmeetings
guiding major plansof action
Reviewing andguiding risk
management
policies
Scheduled – some Reviewing andmeetings
guiding strategy
Reviewing andguiding risk
management
policies

The Audit Committee receives a quarterly report from
MSCI’s Enterprise Risk Management (“ERM”) Officer on
the work of MSCI’s Enterprise Risk Management
Oversight Committee (“EROC”), a management-levelcommittee tasked with overseeing MSCI’s risk
management activities. The Chair of the Audit Committee
then provides a quarterly report to the Board.
Beginning in 2019, the NCG Committee receives a reportfrom the CRO twice a year on the CRC’s operating planand its progress. The operating plan provides an initialframework for reviewing and analyzing MSCI’s ESG
practices, determining high impact areas for improvementof MSCI’s practices and disclosures and developing andimplementing short and long-term plans to address key
areas and gaps. The CRO also reports to the committee
any ESG-related initiatives. Following such reports, theChair of the NCG Committee will then provide a report tothe full Board on material matters.

Scheduled – some Reviewing andmeetings
guiding strategy

The Strategy & Finance Committee, a standing
committee of the Board comprised mostly of independent
non-employee directors, provides management with
Overseeing major
capital expenditures, guidance on MSCI’s business strategy, which may
include sustainability-related opportunities (e.g. climateacquisitions andrelated products/services). This Committee also reviews
divestituresand provides recommendations to the Board on
acquisitions and divestitures. Through its strategy andbudgeting approval process, the Board is presented withinvestment opportunities that include initiatives that,among other things, allow MSCI ESG Research toestablish itself as a leading provider of ESG-related tools
and services that may include climate related products
and services.

C1.2(C1.2) Provide the highest management-level position(s) or committee(s) withresponsibility for climate-related issues.

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Name of the position(s)and/or committee(s)Responsibility

Frequency of reporting to theboard on climate-related
issuesRisk committee

Both assessing and managing
climate-related risks andopportunities

As important matters arise

Both assessing and managing
climate-related risks andChief Human Resources opportunities
Officer (CHRO)As important matters arise

Other C-Suite Officer,
please specify

C1.2a(C1.2a) Describe where in the organizational structure this/these position(s) and/or
committees lie, what their associated responsibilities are, and how climate-related
issues are monitored (do not include the names of individuals).
The NCG Committee is responsible for overseeing ESG matters pertaining to MSCI’s businessand long-term strategy, and the Audit Committee oversees MSCI’s material risks andopportunities, which could include climate-related risks if they had a material impact on MSCI’s
operations. Such committees report to the full Board on matters discussed during committee
meetings, and if climate-related issues were to become a material topic of discussion, theywould be discussed with the full Board. The full Board reviews and approves the annual
operating budget which includes investments in ESG-related opportunities. At the
management level, there are two committees that would be responsible for assessing climaterelated risks and implementing climate-related practices: the EROC and the CRC, respectively.
The EROC is comprised of the President, the Chief Operating Officer (COO), the Chief
Financial Officer (CFO), the General Counsel, the Chief Human Resources Officer (CHRO), theChief Technology Officer (CTO) and the Enterprise Risk Management Officer (ERMO) toensure well rounded representation of potential risk exposure. The EROC oversees MSCI’s risk
management activities to ensure that MSCI is identifying, evaluating, and managing risks that
may have an adverse impact on MSCI’s ability to achieve its operational and strategic
objectives. One area of focus for the EROC is business continuity planning, which involves theprocess through which MSCI’s physical and technological infrastructure is tested for emergency
scenarios, which could include material climate-related emergencies. Should such material
climate-related risks be discussed by the EROC, such risks would be reported to the Audit
Committee. The ERMO reports to the Audit Committee on a quarterly basis on the work of the
EROC. Starting in 2019, the ERMO began reporting to the CFO. The CRC, established at theend of 2018, is led by the CRO who coordinates efforts to implement sound ESG policies andpractices. Beginning in 2019, the CRO provides updates to the NCG Committee twice a year
on the work of the CRC. As of the end of 2018, the CRO reports to the CEO in relation to the
CRO function. In addition to the CRO, the CRC is also comprised of a cross-functional team ofsenior leaders within MSCI, and was organized at the end of 2018:

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

1. CHRO: an Executive Committee level officer, who provides insight on ESG matters from a
Human Resources perspective and input on resources that might be available to improve
MSCI’s ESG practices. The CHRO reports to MSCI’s CEO.
2. Corporate Secretary and Securities Counsel: provides insight into the applicable regulatoryand governance frameworks impacting ESG practices and disclosures; reports to MSCI’s
General Counsel.
3. Head of Global Communications: assists in framing the messaging around MSCI’s ESG
practices to both internal and external stakeholders; reports to MSCI’s COO/Chief Client
Officer.
4. Head of Investor Relations: liaises with investors on ESG matters, including climate change,
and communicates to the CRC investors’ expectations with respect to MSCI’s ESG practices;
reports to MSCI’s CFO. 5. Head of ESG Research: oversees MSCI’s ESG research function,
which provides insight into the ESG practices of companies around the world and is thus best
positioned to provide substantive expertise to the CRC’s own processes and decision; reports
to MSCI’s Global Head of Research.
6. Head of Global Corporate Services Department (“GCSD”): oversees MSCI’s Corporate Real
Estate and Procurement Department, recommends and oversees initiatives to reduce MSCI’s
and MSCI’s vendors’ impact on the environment, and collaborates with the IT function toensure business continuity during extreme climate events. Responsibilities also include
understanding climate change risks and opportunities for MSCI’s office facilities; reports to
MSCI’s CHRO.
7. CRC Project Manager: responsible for the execution of the CRC framework and initiatives;
Reports to the Project Management Office. Any climate-related policies that would be
implemented at MSCI would be reviewed by the CRC. The CRC would then provide oversightto these policies.
Additionally, local employee-driven focus groups have been established in MSCI’s Berkeley(US) – in 2019, London (UK) – in 2018, Monterrey (Mexico) – in 2018, Mumbai (India) – in 2018
and San Francisco (US) - in 2019. These Employee Resource Groups (“ERGs”) aim toincrease awareness of regional staff around material environmental issues and manage themover time, including through behavior change. Achievements include replacing kitchen andshower supplies with sustainable alternatives, installing recycling and composting bins
alongside the regular trash bins, and sharing information with staff on how to reduce plastic use
both in and out of the office. Further expansion of these ERGs into additional MSCI offices
globally, along with global reporting on progress, is anticipated during the latter part of 2019.

C1.3(C1.3) Do you provide incentives for the management of climate-related issues,
including the attainment of targets?
Yes

C1.3a
(C1.3a) Provide further details on the incentives provided for the management ofclimate-related issues (do not include the names of individuals).

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Who is entitled to benefit from these incentives?
Facilities manager

Types of incentives
Monetary reward

Activity incentivized
Energy reduction project

Comment
The Head of the GCSD, who reports to the CHRO, incentivizes his employees (and is inturn incentivized through his compensation) to take various environmental factors(including existence of landlord-driven or local recycling initiatives, use of sustainable
and energy-efficient materials, and control systems enabling the efficient use of power
and availability of public transport for employees) into consideration as part of MSCI’s
approach to acquiring new office space. When selecting new office space, the GCSD
also considers a property’s vulnerability to extreme weather events and natural
disasters.
In addition, the practices of the GCSD have led to the purchase of energy-efficient
products for MSCI’s offices and the wide use of sustainable products including recycled
and low environmental impact materials and the elimination of single-use plastic items.
This has contributed to an emissions reduction trend and MSCI forecasts the continued
selection of lower-impact equipment and materials to result in a further reduction in
MSCI’s emissions. MSCI significantly reduces its environmental impact linked tophysical travel through business travel policies that encourage employees to plan trips
well in advance, to bundle short duration trips into fewer longer term trips and to takefewer physical trips by holding virtual meetings supported by conferencing technologies.
MSCI averages over 13,000 virtual meetings monthly.

Who is entitled to benefit from these incentives?
Executive officer

Types of incentives
Monetary reward

Activity incentivized
Other, please specify
Environmentally focused products

Comment
The Heads of MSCI’s ESG, Index and Analytics product lines are members of MSCI’s
Executive Committee and report to the President of MSCI. The product line heads are
responsible for enhancing MSCI’s current ESG product offerings, integrating new andcurrent ESG capabilities into existing products, and providing platforms and flexible

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

technologies that enable users access to ESG products and services. MSCI seeks todrive growth in use and subscriptions by our end clients in ESG products (products that
help clients to integrate ESG considerations into clients’ investment processes).
Additionally, the Global Head of Research and Product Development is also a memberof the MSCI Executive Committee and oversees the publication of ESG-related researchand participation in conferences to further global understanding of sustainability issues.
Finally, the Chief Strategy Officer is also a member of MSCI’s Executive Committee andhelps to coordinate the efforts of the individuals described above, including initiatives
related to ESG, to help ensure that MSCI’s business activities promote its mission to
power better investment decisions for a better world.
Under MSCI’s pay-for-performance compensation program, the compensation paid toeach Executive Committee member described above is comprised of a base salary,equity awards and annual cash bonus. These three components are determined by both
MSCI’s overall financial performance during the year and the executive’s individual
performance. A part of this performance is determined by the extent to which MSCI issuccessful in launching ESG offerings and expanding existing ones.

Who is entitled to benefit from these incentives?
President

Types of incentives
Monetary reward

Activity incentivized
Other, please specify
Environmentally focused products

Comment
As part of MSCI’s overall revenue growth goals, MSCI’s President’s compensation islinked to, amongst other things, the management and development of climate-related
products and service offerings. The President is incentivized based on the financial
performance of MSCI including the impact on share price and the achievement of sales
targets for MSCI’s reporting segment that includes the ESG product line which include
ESG and climate related indexes. MSCI ESG Research’s climate-related solutions
include:1) MSCI ESG Analytics: a tool that allows clients to integrate ESG into portfolio
construction and risk management using MSCI’s Multi-Asset Class risk andperformance analytics systems.
2) Climate Change Metrics: carbon management assessment, carbon and clean techmetrics and fossil fuel screens for portfolio construction.
3) Carbon Portfolio Analytics: a tool to help clients understand, measure and manage
carbon risk at the portfolio, sector and company level.

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C2. Risks and opportunities
C2.1(C2.1) Describe what your organization considers to be short-, medium- and long-termhorizons.
From (years)

To (years)

Short-term

01Medium-term

1

3Long-term

3

Comment

C2.2(C2.2) Select the option that best describes how your organization's processes for
identifying, assessing, and managing climate-related issues are integrated into youroverall risk management.
Integrated into multi-disciplinary company-wide risk identification, assessment, and management
processes

C2.2a(C2.2a) Select the options that best describe your organization's frequency and time
horizon for identifying and assessing climate-related risks.
Frequency of monitoring

How far into the future are risks considered? Comment

Row 1 Six-monthly or more frequently 1 to 3 years

N/A

C2.2b
(C2.2b) Provide further details on your organization’s process(es) for identifying andassessing climate-related risks.
At the company level: MSCI’s EROC is the management-level committee that assesses andprioritizes MSCI’s risks using a standardized risk assessment framework which considers thelikelihood of regulatory, reputational, financial, operational, or customer impact. The EROC is
led by MSCI’s Enterprise Risk Officer, who periodically reports on findings and progress to the
Audit Committee.
While MSCI, as a people-intensive business, may not be subject to the same level of climaterelated risks as other resource-intensive businesses that have manufacturing plants or own realestate, to the extent that climate-related issues may impact MSCI’s operations or financial
results, such issues are escalated as needed to the EROC. For example, climate change may
exacerbate extreme weather events and other natural disasters, which could interrupt thecontinuity of MSCI’s operations and may have the potential to impact MSCI’s ability to provide
clients with access to its products and services.

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

From time to time, the Head of Information Technology (IT) Risk reports to the Audit Committee
on MSCI’s business continuity plans and IT disaster recovery planning efforts designed tomitigate the impact of such potential disruptions, including those caused by climate andextreme weather events. MSCI’s Business Resiliency team assesses the severity, probability,
and scale of extreme climate events in geographies that it operates within and develops
systems to support MSCI’s business continuity plans.
To assess MSCI’s most probable climate-related facility-level physical and enterprise-leveltransition risks, MSCI conducted a climate-related scenario analysis (in alignment with the
TCFD Recommendations) in early 2019. Drawing from the findings of this analysis and given
MSCI’s mission, operations, and locations worldwide, overall, the top three climate-related
financial risks currently are: temperature extremes, storm damage, and litigation under both the“business as usual” (RCP8.5) and “two-degree” (RCP4.5) scenarios. By 2040, MSCI’s top three
climate-related financial risks change slightly to include coastal flooding.

C2.2c(C2.2c) Which of the following risk types are considered in your organization's
climate-related risk assessments?
Relevance &inclusion

Please explain

Current
regulation

Not relevant,explanation
provided

MSCI is currently not subject to climate-related regulations. MSCI
monitors development of climate-related regulation and legislation.

Emerging
regulation

Relevant,
sometimes
included

Depending on the type of regulation, the relevant groups will be
responsible for keeping up to date on the regulations. For example, if
there are regulations about climate disclosures, our facilities or legal
teams would review them. If it is about climate indicators being built
into our products, our legal team and product teams would review
them.

Technology

Relevant,
alwaysincluded

MSCI’s IT Disaster Recovery Planning aims to mitigate key risks to
its IT infrastructure resulting from climate and extreme weather
events amongst other disasters. Historically, MSCI has directly
experienced the impact of weather in Mumbai, our largest production
office and in Norman, Oklahoma, a key data and technology office.
We successfully mitigated the impact of these events by activating
our business resiliency program. MSCI routinely conducts table top
disaster simulation events, including extreme weather events, forevery office.

Legal

Not relevant,explanation
providedDue to the nature of our business and the products and services weprovide, we do not consider legal risk arising out of climate-related
matters to be material. We structure our client and vendor contracts
so as to minimize exposure to liability (including that which may arise
from climate-related events or patterns) and have robust business
continuity processes in place. In addition, we lease all of our office11

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019space. To the extent climate-related incidents could contribute toincreased legal risk (including litigation risk), we expect that any suchmaterial risks would be discussed at the EROC and communicatedto the Audit Committee of the Board.
MarketRelevant,
alwaysincluded

MSCI conducts consultations with the global investment community
and we engage with clients through regular meetings and events
such as client advisory panels, so that we can build changes in clientneeds into our products including those related to climate risk. MSCI
has low carbon indexes and in 2019 launched Climate Change
indexes.

Reputation

Relevant,
alwaysincluded

Climate-related risks could disrupt our ability to provide products andservices to clients which could negatively impact our reputation. In
addition, MSCI’s reputation could be negatively impacted should wefail to adequately respond to a stakeholder’s request for climate
related disclosure or action.

AcutephysicalRelevant,
alwaysincluded

The most significant impact from acute physical risks is likely to
MSCI’s IT Infrastructure. MSCI’s IT Disaster Recovery Planning aims
to mitigate key risks to its IT infrastructure resulting from climate andextreme weather events amongst other disasters. Historically MSCI
has directly experienced the impact of weather in Mumbai, ourlargest production office and in Norman, Oklahoma, a key data andtechnology office. We successfully mitigated the impact of these
events by activating our business resiliency program. MSCI routinely
conducts table top disaster simulation events, including extreme
weather events, for every office. MSCI maintains backup systems of
its Real Time Index product.

Chronic
physicalRelevant,
alwaysincluded

The most significant impact from chronic physical risks is likely to
MSCI’s IT Infrastructure. MSCI’s IT Disaster Recovery Planning aims
to mitigate key risks to the firm including chronic weather and climate
related risks.

Upstream

Relevant,
sometimes
included

MSCI would be impacted if one of its key vendors was unable toprovide products or services upon which MSCI relies in order toprovide MSCI’s product and services. Whenever feasible, MSCI
identifies multiple sourcing of critical services.

Downstream

Relevant,
sometimes
included

MSCI’s clients could be negatively impacted by climate related risks.
To the extent that such risks could negatively impact the demand forour products and services, this could result in negative financial andoperational impacts to MSCI. MSCI’s clients are across the globe,
potentially minimizing the impact of any one event.

C2.2d(C2.2d) Describe your process(es) for managing climate-related risks andopportunities.

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

The process for managing climate-related risks and opportunities is integrated into multidisciplinary company-wide risk identification, assessment, and management processes. MSCI’s
EROC, a management level committee, oversees MSCI’s risk management activities to ensure
the firm is monitoring, assessing, and managing risks that may have an adverse impact on thefirm’s ability to achieve its goals.
While MSCI, as a people-intensive business, may not be subject to the same level of risks asother resource-intensive businesses that have manufacturing plants or own real estate, to theextent that carbon-related issues may impact its operations or financial results, such issues are
addressed as part of MSCI’s overall business continuity and IT disaster recovery planning. For
example, climate-related issues could exacerbate extreme weather events or natural disasters,
which could have the potential to impact MSCI’s IT and physical infrastructure’s ability toprovide clients with its products and services. The Business Resiliency team within IT Risk
develops, implements, and tests technology systems to support MSCI’s business continuity
plans. MSCI’s business continuity and IT disaster recovery plans are tested periodically, andresults are reported to MSCI’s IT Risk Oversight Committee on a quarterly basis. MSCI’s Crisis
Management Team and Technology Service Operations Service Management Team are
responsible for all aspects of disaster response and recovery response efforts. Disasterrecovery planning and testing encompasses protecting the general welfare and safety of
MSCI’s employees, data centers, networks, applications supporting business operations,communications systems, and general technology recovery following an extreme weather
incident or natural disaster.
The CRC identifies ESG initiatives that promote sustainability. The initiatives are informed by
the members of the CRC. For example, as a member of the CRC, the Head of Investor
Relations, informs the CRC of ESG-related matters that are important to MSCI’s investors(including climate change). To further assess its climate-related risks, in 2019, the CRC had a
climate-related scenario analysis performed. The analysis is intended to help MSCI in its
ongoing efforts to build upon the processes and frameworks for managing climate-related risks
and opportunities and improving its communications around these efforts, including thoserelated to lowering its environmental impact and achieving energy efficiency.
The process for managing climate-related commercial opportunities is done at a product line
level. The heads of our product lines and key functional areas (e.g., Research and IT) oversee
efforts to conduct regular consultations with the global investment community and engage withclients through regular meetings and events such as client advisory panels to better understandthe demand for climate-related products. For example, our climate change team within MSCIESG Research supports our clients by providing products that help them measure and reporton climate risk exposure, implement low carbon and fossil fuel-free investment strategies andfactor climate change research into their risk management processes. There is ongoingdevelopment of new models that are used by our clients in combination with the risk analytical
tools developed within our Analytics product line to manage climate risk exposure.

C2.3(C2.3) Have you identified any inherent climate-related risks with the potential to havea substantive financial or strategic impact on your business?
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Yes

C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive
financial or strategic impact on your business.

Identifier
Risk 1

Where in the value chain does the risk driver occur?
Direct operations

Risk typePhysical riskPrimary climate-related risk driver
Acute: Increased severity of extreme weather events such as cyclones and floods

Type of financial impact
Reduced revenue from decreased production capacity (e.g., transport difficulties, supply
chain interruptions)Company- specific description
While MSCI's primary business of providing financial products and services does not
expose us directly to climate-related risks, we may experience a local or regional
climate-related issue or other business continuity problem, such as a heat wave,
hurricane, or flood resulting in power loss or telecommunications failure. Our ability tocontinue to operate depends, in part, on the health and availability of our personnel, ouroffice facilities, and the proper functioning of our electronic, telecommunication andother related systems and operations. In such an event, we could experience
operational challenges with regard to particular areas of our operations, such asavailability of key executive officers or personnel, that could have an adverse effect on
our business.
MSCI maintains comprehensive, all peril insurance coverage to help mitigate thesimultaneous loss (temporary or permanent) of several major MSCI facilities. Historically
MSCI has directly experienced the impact of weather in Mumbai, our largest production
office and in Norman, Oklahoma, a key data and technology office. We successfully
mitigated the impact of these events by activating our business resiliency plans. MSCI
routinely conducts table top disaster simulation events, including extreme weather
events, for every office.

Time horizon
Current

Likelihood
Likely14

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Magnitude of impact
Low

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
1

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figureManagement continually evaluates the likelihood and impact of business interruption
events and implements and maintains business resiliency plans and ongoing tests.

Management method
While not all disasters can be fully anticipated, we regularly assess and take steps toimprove our existing business continuity plans, including by establishing and maintaining
state of the art computational facilities and employing a geographically diverse
operational workforce and leadership team. MSCI’s business continuity plans and IT
disaster recovery planning efforts have aided MSCI’s ability to operate in a “business as
usual” fashion in the face of climate-related events such as Hurricane Sandy in the
Northeast US, droughts in South Africa, monsoons in Mumbai, flooding in Budapest,
extreme heat in Western Europe, tornados in Oklahoma and typhoons in Manila andHong Kong. MSCI reviews, updates and tests these plans routinely. As part of ourongoing review of our business continuity plans, climate change impacts are consideredalong with various other potential events which can impact MSCI locations.
Since our business continuity plans are designed to mitigate any inability for MSCI tocontinue its business operations regardless of whether the risks are driven by climate
factors or other factors, we do not incur any incremental cost of managing this risk froma climate perspective.
This is the approximate annual spend MSCI invests to maintain a dedicated BusinessContinuity Plan team, business continuity planning software and ongoing IT and project
management costs to manage plans, testing, and communication.

Cost of management
850,000

Comment
We maintain a dedicated Business Continuity Plan group as well as business continuity
planning software to manage plans, testing, and communication.

Identifier
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Risk 2

Where in the value chain does the risk driver occur?
Direct operations

Risk typePhysical riskPrimary climate-related risk driver
Chronic: Changes in precipitation patterns and extreme variability in weather patterns

Type of financial impact
Increased capital costs (e.g., damage to facilities)

Company- specific description
Increased severity of extreme weather events puts MSCI's physical locations at risk. For
example, our largest office is in Mumbai, which in recent years, has experienced
episodes of extreme weather, including longer monsoon seasons. Based on our TCFD
scenario analysis of MSCI’s offices and data centers, the Mumbai location has thegreatest absolute risk, driven by its asset value and its exposure to temperature
extremes. Exposure in Mumbai is dominated by temperature extremes, which canincrease cooling costs, reduce the quantity of water availability, and affect employee
productivity. Our other larger offices may also experience weather-related damage, suchas flooding, that could increase our costs of operations, maintenance, and disaster
response and recovery.

Time horizon
Current

Likelihood
About as likely as not

Magnitude of impact
Low

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
1

Potential financial impact figure – maximum (currency)
100,000

Explanation of financial impact figure
MSCI maintains comprehensive, all peril insurance coverage to help mitigate thesimultaneous loss (temporary or permanent) of several major MSCI facilities. The range

16

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019provided indicates the potential financial impact that would not be covered through our
insurance program.

Management method
MSCI annually assesses and obtains comprehensive third-party insurance to mitigate
the impact, including climate-related, of damage to its physical facilities and businessdisruptions. On an annual basis, MSCI incurs a $200,000 expense to maintain thirdparty insurance coverage to protect our business from various damages.

Cost of management
200,000

Comment
We continue to evaluate the adequacy of our insurance to mitigate the risks.

Identifier
Risk 3

Where in the value chain does the risk driver occur?
Customer

Risk typeTransition riskPrimary climate-related risk driverMarket: Changing customer behavior

Type of financial impact
Reduced demand for goods and/or services due to shift in consumer preferences

Company- specific description
The investment industry is increasingly looking for products and services to support
more sustainable markets and implement effective risk disclosure and management
strategies (including climate-related risks) within the broader ESG field. In response tothis increased demand, we expect the competition in this industry to also increase. We
do regular consultations with the global investment community and we engage withclients through regular meetings and events such as client advisory panels. MSCI
invests in ESG products and anticipates increased demand.

Time horizon
Current

Likelihood
Very unlikely

Magnitude of impact
Low

Are you able to provide a potential financial impact figure?
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Yes, a single figure estimate

Potential financial impact figure (currency)
1

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
We offer competitive ESG products and invest into R&D and innovation in this area.

Management method
MSCI and MSCI ESG Research continue to assess and develop a comprehensive
portfolio of innovative solutions to respond to industry trends and consumer demand.
For example, if clients’ regulatory obligations change, we may consider changing our
product offering. MSCI does not incur any additional costs for managing this risk, asdeveloping a comprehensive portfolio of innovation solutions including climate-financerelated products and services is one of its main business focuses. We consider theseproducts and services to be embedded in our management costs and to be part of ourcore business strategy.

Cost of management
1

Comment
These offerings are across all of our products and services and the cost of managementof these activities is embedded in a multi-functional comprehensive framework.

C2.4(C2.4) Have you identified any climate-related opportunities with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have asubstantive financial or strategic impact on your business.

Identifier
Opp1

Where in the value chain does the opportunity occur?
Customer

Opportunity type18

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Products and services

Primary climate-related opportunity driver
Development of new products or services through R&D and innovation

Type of financial impact
Better competitive position to reflect shifting consumer preferences, resulting inincreased revenues

Company-specific description
MSCI and MSCI ESG Research provide a range of capabilities to clients whose focus ison ESG investing across our segments including ESG, Index, Analytics and a potential
expansion to Real Estate. Given the renewed focus on climate change andsustainability, the market for sustainable investments is increasing, and we continue to
see opportunities to expand adoption of ESG-related products and services, such as
ESG Ratings and ESG Indexes. Clients often use our ESG products and services forthe following objectives: (1) investing with a systematic and explicit inclusion of ESG
risks and opportunities in investment analysis, (2) investing with the intention to
generate measurable positive social or environmental benefits alongside a financial
return, and (3) investing in alignment with an organization or individual's values. MSCIESG Research products are a key growth pillar for MSCI and the opportunity was
discussed in detail during annual Investor Day in February 2019. We continue toevaluate the potential financial opportunity impact of ESG products, as they are core to
MSCI’s strategic planning process. It is challenging to identify a specific dollar range forthe financial impact of the ESG opportunity; however, MSCI presented that its long-term
growth target growth rate for MSCI ESG is mid-twenties and in 2018 this product line
grew 30% year on year to $71 million revenue.

Time horizon
Current

Likelihood
Very likely

Magnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
1

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure

19

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

This is a growing business and we continue to evaluate the financial impacts. Demand
for these products continues to grow and we continually evaluate the impact of theseproducts in connection with our firmwide strategic and annual operating plan process.

Strategy to realize opportunity
MSCI continues to develop and expand on the products/services to help investors makedecisions based on a company’s financial and ESG performance, work with clients tounderstand their ESG investment objectives.
MSCI ESG Indexes are designed to integrate ESG criteria into benchmarks to measureperformance and report on compliance with ESG mandates, for use by institutional
investors who wish to adopt a long-term sustainable investment view. They enableclients to issue index-based ESG investment products, benchmark and measure theperformance of ESG portfolios.
MSCI ESG Ratings are designed to identify ESG risks or opportunities that may not be
captured through conventional analyses, including exposures (e.g. business segment
and geographic risks), management and industry-specific measures that may include
the intersection of a company's major social and environmental impacts with its corebusiness operations.

MSCI ESG Governance Metrics provides institutional investors with corporate
governance research and data on public companies worldwide.
The costs associated with these strategies include the costs of developing ESG
products and services, personnel salaries, marketing, and other administrative costs.
Since we consider these products and services part of our core business strategy andthere is no additional cost from a climate perspective.

Cost to realize opportunity
1

Comment

Identifier
Opp2

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Resource efficiency

Primary climate-related opportunity driver
Use of recycling

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Type of financial impact
Reduced operating costs (e.g., through efficiency gains and cost reductions)Company-specific description
MSCI is reducing the use of single use plastics and other disposable kitchen items aswell as office supplies. Programs are also in place to reduce and recycle paper
throughout MSCI offices.

Time horizon
Current

Likelihood
Very likely

Magnitude of impact
Low

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
25,000Potential financial impact figure – maximum (currency)
30,000Explanation of financial impact figure
MSCI has a program in place to reduce or eliminate the use of single use plastic items,
other kitchen items and office supplies, thereby reducing annual operating costs. The
estimated savings is based on MSCI’s current number of offices and employees.

Strategy to realize opportunity
MSCI has eliminated the purchase of single use plastic beverage bottles and is working
with each office to reduce other consumption. All MSCI offices have implemented
printers, which utilize energy star rated printers, environmentally friendly print inks, andhave ID badges enabled to limit and/or eliminate unnecessary print jobs.

Cost to realize opportunity
1

Comment
The implementation and management of these policies is embedded within the facilities
operating plans.

Identifier
Opp3

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Resource efficiency

Primary climate-related opportunity driver
Other

Type of financial impact
Reduced operating costs (e.g., through efficiency gains and cost reductions)Company-specific description
While the nature of our business means we have a relatively small carbon footprint, we
believe there is still an opportunity to be more efficient in our operations and reduce
costs through the implementation of programs to reduce energy consumption and limit
the volume of our business travel.

Time horizon
Current

Likelihood
Very likely

Magnitude of impact
Low

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
250,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
MSCI intends to reduce its annual per capita utility and travel costs. The estimatedsavings is based on MSCI’s current number of offices and employees.

Strategy to realize opportunity
MSCI has a goal of moving 100% of its employees to LEED or equivalent buildings,
thereby reducing annual utility costs per building. Efficient light fixtures and smart
lighting occupancy sensors are enabled throughout MSCI buildings to reduce electricity
consumption. MSCI travel policy emphasizes opportunities to limit physical travel (e.g.
virtual meetings). MSCI provides advanced virtual teleconferencing services to
employees making it easier to conduct business without extensive travel while reducing

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

MSCI’s Scope 3 GHG emissions. The costs associated with this opportunity are variable
and are already fully integrated into our occupancy and travel planning processes.

Cost to realize opportunity
1

Comment

C2.5(C2.5) Describe where and how the identified risks and opportunities have impacted
your business.
ImpactDescription

Products andservices

Not yetimpacted

MSCI has offices located in different geographies with inherent physicalclimate risks (such as extreme temperatures, storm damage, andcoastal flooding), some of which have the potential to cause substantive
impact to MSCI’s ability to provide continued services to its clients. To
date, MSCI business resiliency plan and insurance policies havemitigated the impact of climate related events. Climate related events
could enhance the client demand for products and services used by ourclients to evaluate risk and impact of climate change.

Supply chain
and/or valuechain

Not yetimpacted

Physical climate risks, such as temperature extremes, storm damage,and coastal flooding have the potential to disrupt operations of MSCI’s
supply chain and value chain members, which in turn may directly or
indirectly impact MSCI’s operations and timely customer delivery.
Whenever feasible, MSCI identifies multiple sourcing of critical services
so as to reduce the impact from supply chain disruptions.

Adaptationand mitigation
activities

Not yetimpacted

The potential of physical climate risks causing business interruptions
presents MSCI with an opportunity to proactively invest in adaptation
and resilience activities to minimize the impact of such risks and seek
competitive advantage by aiming to ensure continuity of services to its
clients. MSCI’s office selection process takes into consideration multiple
factors including susceptibility to climate or severe weather events.
Climate related scenarios are included in annual testing of businessresiliency plans.

Investment in
R&D

Not yetimpacted

In 2019, MSCI invested in conducting a climate-related scenario
analysis to determine the risks and opportunities associated with achanging climate to MSCI’s mission, operations, and facilities. The
findings of this analysis have been incorporated into this response.
MSCI continues to invest in R&D to enhance the product line including
climate-related solutions.

Operations

Not yetimpacted

MSCI relies on natural resources such as energy, water, and otherongoing consumables and assumes uninterrupted availability of theseresources to operate its business. Any chronic or acute physical climate

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

risks have the potential to disrupt MSCI’s business operations for the
short to medium term. MSCI’s office selection process takes into
consideration multiple factors including susceptibility to climate or severe
weather events. Climate related scenarios are included in annual testingof business resiliency plans.
Other, please
specify

C2.6(C2.6) Describe where and how the identified risks and opportunities have beenfactored into your financial planning process.
Relevance

Description

Impacted

MSCI ESG Research is a leader in ESG products and services.
In connection with developing our strategic and operating plans,
MSCI evaluates changes in client demand for climate-related
products and services. MSCI has had, and expects to continue,
positive revenue growth from ESG linked products.

Operating costs Impacted

MSCI considers increasing investment in climate related
products to capture growing demand. Additionally, MSCI
maintains a robust business resiliency program and makes
decisions to locate and manage its facilities considering factors
including climate change. MSCI continues to invest in climate
related products as demands increase.

Capital
Impacted for
expenditures /some suppliers,
capital allocation facilities, or
product lines

MSCI’s capital planning process provides flexibility to respondto severe weather events in one or more locations. The firm’s
physical assets are insured.

Acquisitions and Impacted
divestments

MSCI is continually focused on enhancing and expanding thequality and breadth of ESG products and services bothorganically and in organically. Enhancing our environmental,
and in particular climate-related, capabilities is a top priority.

Revenues

Access tocapitalNot yet impacted We do not anticipate risks related to our access to capital due to
MSCI’s business model and product offerings. MSCI does notoffer products that pose environmental risks that would be apotential deterrent when investors are evaluating MSCI in linewith their environmental stewardship guidelines and overall
investment strategy. However, we have been increasingly
engaging the investment community to help them understandour commitment to environmental sustainability as anorganization as well as our commitment to delivering ESG
products and services to enable sustainable investing. We hopethese efforts will further increase the attractiveness of MSCI to24

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

the investment community, particularly those portions of thecommunity focused on sustainable companies.
Assets

Impacted

MSCI considers these impacts through our business resilience
process and insurance coverage.

Liabilities

Impacted

MSCI considers these impacts through our business resilience
process and insurance coverage.

Other

C3. Business Strategy
C3.1(C3.1) Are climate-related issues integrated into your business strategy?
Yes

C3.1a
(C3.1a) Does your organization use climate-related scenario analysis to inform yourbusiness strategy?
Yes, qualitative and quantitative

C3.1c(C3.1c) Explain how climate-related issues are integrated into your businessobjectives and strategy.
i. How business objectives and strategy have been influenced;
MSCI ESG Research’s Research and Ratings are some of our most strategically important andhighest growth product offerings. Increasing requirements to disclose data on financial impactsof climate consequences influence our business strategy to diversify and expand our business
offerings’ depth. We are a leader in providing ESG investment decision tools. Our ESG
Research and Ratings help investors understand ESG characteristics of companies andinvestment portfolios, and construct investment strategies to achieve responsible investment
and climate-related objectives. MSCI ESG Research’s Carbon Portfolio Analytics report is atool for understanding, measuring and managing carbon risk at the portfolio, sector, andcompany level. In 2019 MSCI launched Climate Change Indexes designed to enable investors
to integrate climate risk considerations in their investment process.
ii. Strategy is linked to an emissions reductions target; Though currently MSCI does not havean enterprise- or facility-level energy or emissions reduction target, we engage in efforts to
reduce our energy and emissions impacts. For example, to encourage energy efficiency wehave a goal for 100% of our employees to be in LEED or equivalent buildings. During 2019 we
secured expansion rights in LEED Platinum buildings in Manila and Budapest. MSCI engaged
with an external consultant to train staff about better data collection practices, and conductedverification of its GHG inventory from a third-party to align with best practices, and to establish
an understanding of its baseline emissions upon which future emissions reduction targets could
25

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019be set. MSCI anticipates setting an enterprise-wide emissions reduction target in the next two
years. MSCI strategically chose Switch as its data center vendor as their North American
facilities are powered by 100% renewable power, which helps to decrease MSCI’s
environmental footprint.
iii. Most substantial business decision has been to appoint the CRO. The CRO’s appointment
underscores our long-term commitment to the environment and sound social practices k e.g.
diversity and inclusion, talent development, and best-in-class corporate governance structures.
MSCI hopes to leverage the CRO’s background and expertise to streamline MSCI’s ESG
efforts and to advance its ESG strategy; thereby establishing a framework for addressing any
reputational risks and opportunities that arise from climate-related physical and transitional
factors.
iv. What aspects of climate change have influenced the strategy: The need to reduce energy
and water consumption and waste generation to reduce our environmental impact, extreme
weather events, potential regulatory changes, and opportunities to develop sustainability- andclimate-related research and index solutions for our customers are all aspects of climatechange that influence our strategy.
Other strategy-influencing aspects of climate change are the need for adaptation, developing
climate-related offerings, and managing our relevance and reputation while transitioning to a
low-carbon economy. The need to maintain our own reputation as it relates to responsivenesson climate issues drives our CRC’s mandate, which has identified our goals, decisions, andactions on various ESG topic areas.
v. How the short-term strategy has been influenced by climate change;
Given the growing emphasis of incorporating the TCFD recommendations for assessing andmanaging climate-related risks and opportunities, MSCI identified the need to conduct a climate
scenario analysis to inform business strategy. Such analysis was conducted in 2019 and MSCI
is working on incorporating the findings in its broader business strategy and as a means toenhance our management of the climate-related risks and enhance opportunities.
The ESG product group supports our clients by providing products that help them measure andreport on climate risk exposure, implement low carbon and fossil fuel-free investment strategies
and factor climate change research into their risk management processes. These products
include climate risk metrics, carbon portfolio reporting, low carbon indexes and tools to identify
cleantech and environmentally-oriented companies. Our clients use our ESG models in
combination with our risk analytical tools to manage their climate risk exposure.
vi. How the long-term strategy has been influenced by climate change;
As part of its business strategy, MSCI intends to continue to invest heavily in ESG productofferings .business strategy and the outcomes anticipated by environmentally responsible
behaviors are strongly aligned in several important respects. A component of MSCI’s businessstrategy, as it relates to our office and expense management strategy, achieve efficiencies andmonitor and consider costs and activities related to climate change. While we do not believethat our business model has substantive risks related to climate change, we consider thephysical risks and impact of climate change on costs of travel, facilities and production costs
resulting from the rising costs of resources. We believe a focus on leveraging technology toautomate and streamline labor intensive processes and promote virtual employee and client
engagement to reduce the need for travel will help enhance the scalability and sustainability ofour business, while generating long-term efficiencies. These actions have led to efficiencies in
MSCI’s expense base and management will continue to focus on policies and practices that
promote sustainability and efficiency, including working towards setting long-term GHG
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

performance targets and seeking LEED and BREEAM-certified office space when entering into
new leases.
vii. How this is gaining a strategic advantage over your competitors;
We invest heavily in broadening and enhancing our ESG capabilities to promote the adoption of
ESG investing by the world’s leading investors. To complement our ESG product offering, our
ESG experts contribute their knowledge and expertise by publishing research and speaking atconferences. These research pieces focus on fundamental industry topics and include theannual Women on Boards progress report, ESG Trends to Watch forecast and the Foundationsof ESG Investing educational series. Such research, as well as opinion pieces, has been
regularly referenced or published in reports from top-tier financial news outlets (e.g. Forbes,
The Wall Street Journal, Reuters, Financial Times). One of MSCI ESG’s senior executives wasin June 2018 recognized as one of the 20 most influential people in ESG investing by Barron’s
Magazine. The Bloomberg Barclays MSCI Green Bond Index was voted “best index” at theEnvironmental Finance Green Bond Index Awards for the second year (April 2018). These
activities provide us with a competitive advantage by positioning us as a thought leader.

C3.1d(C3.1d) Provide details of your organization’s use of climate-related scenario analysis.
Climaterelated
scenarios

Details

RCP 4.5

In 2019, MSCI analyzed its 32 physical locations for acute and chronic physical andtransitional risks and opportunities. The analysis was conducted by external climate
experts using Climanomics®— a proprietary analytical software tool. To conduct theanalysis, MSCI used the employee count in each office location to apportion
company revenue by each location as a way to assess the magnitude on financial
impact associated with the location and timeframe within which a potential risk may
become reality. The analysis included two scenarios defined by the IPCC BREEAM‘s
Representative Concentration Pathway (RCP)—namely RCP4.5 for years 2020 and
2040 and RCP8.5 for the year 2040—to assess physical risk exposure and theShared Socioeconomic Pathways family of scenarios (SSP 1-5) for carbon-priceeffects or transitional risks and opportunities. The timeframes selected were chosen
based on MSCI’s desire to understand, plan for, and manage current (2020) andpotential future (2040) climate-related risks and opportunities to its assets,
operations, and services. The results of this analysis identified temperature extremes,
storm damage, litigation, and coastal flooding risks to be of most relevance to MSCI’s
business, assets, operations, and strategy. Out of all MSCI’s physical locations, its
Mumbai location was found to carry the highest risk exposure from temperature
extremes, followed by Manila, New York, and Budapest. The analysis also
discovered that under the RCP8.5 scenario, it is likely that 60% of its assets will have
3% of their asset value at risk by 2040. MSCI intends to continue integratingprocesses to manage these climate risks as part of its overall business risk
management efforts. As MSCI continues to fully understand the financial andstrategic impacts of temperature extremes, storm damage, litigation, and coastal
flooding on its business, assets, operations, and strategy, we hope to introduce

RCP 8.5

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

adaptation and resilience measures to manage and mitigate these risks within thenext several years. Any updates concerning our management of climate-related risks
and opportunities may be provided on our corporate responsibility webpage.

C4. Targets and performance
C4.1(C4.1) Did you have an emissions target that was active in the reporting year?
No target

C4.1c(C4.1c) Explain why you do not have emissions target and forecast how youremissions will change over the next five years.
PrimaryreasonRow We are
1planning to
introduce atarget in thenext twoyears

Five-year forecast

Please explain

MSCI intends to set an emissions
While the attainment of specific climatetarget within the next two years. To
related targets has not yet beenbuild upon MSCI’s existing practices of incorporated into MSCI’s long-termsustainable procurement, employee
business strategy, MSCI has continued
incentives, and wide use of sustainable to implement emissions reduction
products, MSCI intends to set anpractices within its operations. Seeemissions intensity reduction target.
“Additional Information” for a discussion
This target will likely be implementedof the integration of climate-related
within the next two years, followed by issues into MSCI’s long-term businessthree years of emissions efficiency
strategy. Under MSCI’s compensation
measures to meet the commitments
program, employees of the GCSD are
outlined in the intensity target. In the
incentivized to take various
meantime, we will make emissionsenvironmental factors (including
aware decisions.
existence of landlord-driven or local
recycling initiatives, use of sustainable
and energy-efficient materials andcontrol systems enabling the efficientuse of power and availability of public
transport for employees) into
consideration as part of our approach toacquiring new office space. Whenselecting new office space, the GCSD
also accounts for a property’s
vulnerability to extreme weather eventsand natural disasters. In addition, thepractices of the GCSD have led to thepurchase of energy-efficient products
for MSCI’s offices and wide use of28

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019sustainable products including recycled
and low environmental impact
materials. This has contributed to anemissions reduction trend and MSCI
forecasts the continued selection oflower-impact equipment and materials
to result in a further reduction in MSCI’semissions. MSCI intends to set anemissions target within the next two
years. To build upon MSCI’s existing
practices of sustainable procurement,
employee incentives, and wide use ofsustainable products, MSCI intends to
set an emissions intensity reduction
target. This target will likely be
implemented within the next two years,
followed by three years of emissions
efficiency measures to meet thecommitments outlined in the intensity
target. Once a target is in place, MSCI
expects its emissions intensity to belowered in the coming years.

C4.2(C4.2) Provide details of other key climate-related targets not already reported inquestion C4.1/a/b.

C4.3(C4.3) Did you have emissions reduction initiatives that were active within thereporting year? Note that this can include those in the planning and/or
implementation phases.
Yes

C4.3a
(C4.3a) Identify the total number of initiatives at each stage of development, and for
those in the implementation stages, the estimated CO2e savings.
Number of
initiatives

Total estimated annual CO2e savings in metrictonnes CO2e (only for rows marked *)Under investigation0

0

To be implemented*

0

0

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Implementationcommenced*

00

Implemented*

1

10.91

Not to be implemented 0

0

C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the tablebelow.

Initiative type
Energy efficiency: Building services

Description of initiative
Other, please specify
In 2018, MSCI chose to replace all existing incandescent lights with energy efficient
LED fixtures on the 8th, 9th, and 14th floors, resulting in great energy efficiency andreducing GHG emissions.

Estimated annual CO2e savings (metric tonnes CO2e)
10.91

Scope
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
6,017

Investment required (unit currency – as specified in C0.4)
18,692

Payback period
1-3 years

Estimated lifetime of the initiative
16-20 years

Comment
Expected lifetime is estimated based on the rated life of the LED fixtures accounting for
regular office hour usage (8 hours per day multiplied by 210 working days).

C4.3c(C4.3c) What methods do you use to drive investment in emissions reduction
activities?
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

MethodComment

Dedicated
MSCI has committed to having all its employees work in energy efficiency/ LEED
budget for/ BREEAM certified offices. To stay aligned with this commitment, MSCI chooses
energy efficiency to prioritize selection of energy efficient office locations and when feasiblechooses to implement energy efficiency measures while remodeling existing
office locations. MSCI has installed energy-efficient lighting, using motion sensors
on lights in offices which represent 95% of our global headcount. In addition, 89%of our global headcount currently occupy space that is certified as LEED,BREEAM, Energy Star or recognized locally as equivalent. Our offices in Mumbai,
Budapest, New York, Manila, Norman, Boston, Chicago, San Francisco,Frankfurt, Gaithersburg, Seoul and Dubai are LEED-certified and our London andParis offices are BREEAM-certified. MSCI’s offices in Tokyo, Singapore andMonterrey were also recognized locally for their environmental design and green
building technology. MSCI’s Tokyo facility was rated 5 Stars by DBJ Green
Building in 2015 for its large-scale solar generation and MSCI’s Singapore facility
earned the Building & Construction Authority Green Mark Platinum Award in 2016
for its environmentally-friendly construction, design, and operation. For all future
moves, employees of the Global Corporate Services Department are incentivized
to take various environmental factors (including existence of landlord-driven or
local recycling initiatives, use of sustainable and energy-efficient materials andcontrol systems enabling the efficient use of power and availability of public
transport for employees) into consideration as part of our approach to acquiring
new office space. MSCI’s U.S. based data centers follow best in class powerusage effectiveness (PUE) practices, resulting in PUE that exceeds the industry
average by nearly 34%.
Employeeengagement

MSCI has also taken steps in prior years to reduce its carbon footprint, including
by minimizing its use of paper by: changing the default on its printers across theglobe to double-sided printing, using an electronic portal to make documents
available for Board and certain senior management meetings in lieu of printing
and shipping voluminous binders and adopting notice and access to minimize thedelivery of materials related to its annual shareholders’ meetings. MSCI has
company-wide video and teleconferencing systems available to reduce travelrelated emissions. As a firm, MSCI averages over 13,000 virtual meetings
monthly. MSCI is also committed to doing its part to promote sustainability by
reducing plastic consumption. MSCI has implemented processes across all
offices to eliminate single-use plastic items, including water bottles, straws, coffee
stirrers and other disposable items. Where practical, MSCI is replacing
disposable water bottles with pitchers and glassware in offices with frequent client
meetings and other visitor events. MSCI is also in the process of eliminating
under-desk waste-paper baskets to focus efforts on recycling items where
possible rather than sending them to a landfill. MSCI also encourages employees
to commute to work by public transport by supporting commuter programs thatallow them to pay for such transport with pre-tax dollars.

31

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C4.5
(C4.5) Do you classify any of your existing goods and/or services as low-carbon
products or do they enable a third party to avoid GHG emissions?
No

C5. Emissions methodology
C5.1(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).
Scope 1
Base year start
January 1, 2018

Base year end
December 31, 2018

Base year emissions (metric tons CO2e)659.77

Comment
Scope 2 (location-based)
Base year start
January 1, 2018

Base year end
December 31, 2018

Base year emissions (metric tons CO2e)
10,040.53

Comment
Scope 2 (market-based)
Base year start
January 1, 2018

Base year end
December 31, 2018

Base year emissions (metric tons CO2e)6,895.5
32

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Comment

C5.2(C5.2) Select the name of the standard, protocol, or methodology you have used tocollect activity data and calculate Scope 1 and Scope 2 emissions.
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)

C6. Emissions data
C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons
CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)659.77

Start date
January 1, 2018

End date
December 31, 2018

Comment
Scope 1 emissions include emissions from on-site generation, including emissions fromgenerators.

C6.2(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1
Scope 2, location-based
We are reporting a Scope 2, location-based figure

Scope 2, market-based
We are reporting a Scope 2, market-based figure

Comment

33

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C6.3
(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons
CO2e?
Reporting year
Scope 2, location-based
10,040.53

Scope 2, market-based (if applicable)
6,895.5

Start date
January 1, 2018

End date
December 31, 2018

Comment
Scope 2 emissions include facility energy usage, including purchased heating.

C6.4(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies,etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting
boundary which are not included in your disclosure?
No

C6.5(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining
any exclusions.
Purchased goods and services
Evaluation status
Relevant, not yet calculated

Explanation
MSCI currently does not quantify the emissions resulting from its purchased goods andservices, but intends on doing so in the coming years.

Capital goods
Evaluation status
Not evaluated

Explanation

34

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated

Metric tonnes CO2e909.71

Emissions calculation methodology
U.S. EPA emissions factors by sub region were used to calculate transmission anddistribution losses from the electric grid for U.S. facilities. EIA emissions factors wereused to calculate losses from the electric grid for non-U.S. facilities. MSCI’s percent loss
for U.S. facilities was based upon EIA’s U.S. average transmission and distribution loss
rate. For non-U.S. locations, World Bank transmission and distribution loss factors were
used.

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Explanation
Emissions represent upstream electric transmission and distribution losses.

Upstream transportation and distribution
Evaluation status
Not relevant, explanation provided

Explanation
MSCI does not have any material purchases that have upstream transportation anddistribution.

Waste generated in operations
Evaluation status
Relevant, not yet calculated

Explanation
MSCI currently does not collect data on waste generated in its facility operations and islimited in its current ability to collect this data as waste is collected at a building level,
which makes it difficult to estimate the amount of waste that can be attributed to MSCI’s
portion of leased space within the building. MSCI intends on exploring ways to collectthis data in future years.

Business travel
Evaluation status
Relevant, calculated

Metric tonnes CO2e
3,716.83
35

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Emissions calculation methodology
Source: Department for Environment, Food and Rural Affairs (DEFRA), Updated:
October 5, 2010, Version 1.2.1 FINAL Produced by AEA for the Department of Energy
and Climate Change (DECC) and DEFRA was used to estimate emissions fromcommercial. In addition, EPA emissions factors were used to calculate emissions
resulting from employee passenger rail travel for business. Rental car emissions are a
combination of emissions reported in the AVIS rental car report, provided by the rental
car company and applying that same emission factor to non-Avis rental cars.

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Explanation
MSCI does not own a vehicle fleet. Rather the company relies on commercial providers
for business travel needs. In 2018, employees travelled for business by air, rail, andcars. Annual rental car, rail travel and air travel reports were obtained from therespective rental car companies and travel agencies.

Employee commuting
Evaluation status
Relevant, not yet calculated

Explanation
MSCI intends on calculating the emissions resulting from employee commuting in thenext few years.

Upstream leased assets
Evaluation status
Not relevant, explanation provided

Explanation
MSCI does not have any upstream leased assets therefore this emissions category is
not applicable.

Downstream transportation and distribution
Evaluation status
Not relevant, explanation provided

Explanation
MSCI does not have any downstream transportation and distribution emissions

Processing of sold products
Evaluation status
Not relevant, explanation provided

Explanation
36

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

MSCI’s sold products are web-based and do not require processing therefore thiscategory is not applicable.

Use of sold products
Evaluation status
Not relevant, explanation provided

Explanation
All of MSCI’s products and services are virtual and therefore this emissions category
does not apply.

End of life treatment of sold products
Evaluation status
Not relevant, explanation provided

Explanation
MSCI does not have products that need end of life treatment and therefore this category
is not applicable.

Downstream leased assets
Evaluation status
Not evaluated

Explanation
MSCI does not have any downstream leased assets and therefore this category is notapplicable.

Franchises
Evaluation status
Not relevant, explanation provided

Explanation
MSCI does not have any franchises and therefore this emissions category is notapplicable.

Investments
Evaluation status
Not relevant, explanation provided

Explanation
MSCI currently does not have any investments that generate emissions and therefore
this emissions category is not applicable to our business.

Other (upstream)
Evaluation status
Not relevant, explanation provided
37

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Explanation
MSCI does not have any other upstream emission sources and therefore this emissions
category is not applicable.

Other (downstream)
Evaluation status
Not relevant, explanation provided

Explanation
MSCI does not have any downstream emission sources and therefore this emissions
category is not applicable.

C6.7(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant toyour organization?
No

C6.10
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for thereporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.

Intensity figure
0.0000053

Metric numerator (Gross global combined Scope 1 and 2 emissions)
7,555.28

Metric denominator
unit total revenue

Metric denominator: Unit total
1,433,984,000

Scope 2 figure used
Market-based% change from previous year
28.11

Direction of change
Increased

Reason for changeThis year, MSCI changed its GHG data collection efforts by largely collecting actualenergy and fuel usage data as opposed to estimating usage by applying energy
38

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019intensities by space type. This allows for a more accurate accounting of GHG
emissions. However, changing this method of calculation increased the emissions. Thechange is also driven by an increase in revenue. A slight decrease of 10.91MTCO2e
was also noted resulting from lighting energy reduction activities in Monterrey but thisdecrease was insignificant in comparison to the overall emissions increase. Last year's(2017) revenue was $1,274,172,000 and emissions were 5,240.31 MTCO2e. The ratio
this year is 28.87% higher.

Intensity figure
2.2452539

Metric numerator (Gross global combined Scope 1 and 2 emissions)
7,555.28

Metric denominator
full time equivalent (FTE) employee

Metric denominator: Unit total
3,365

Scope 2 figure used
Market-based% change from previous year
41.05

Direction of change
Increased

Reason for changeThis year, MSCI changed its GHG data collection efforts by largely collecting actualenergy and fuel usage data as opposed to estimating usage by applying energy
intensities by space type. This allows for a more accurate accounting of GHG
emissions. However, changing this method of calculation increased the emissions. Thechange is also driven by an increase in (FTE) employees. Last year's (2017) FTE countwas 3,292 and emissions were 5,240.31 MTCO2e. The ratio this year is 41.05% higher.

Intensity figure
0.0117481

Metric numerator (Gross global combined Scope 1 and 2 emissions)
7,555.28

Metric denominatorsquare footMetric denominator: Unit total
39

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

643,109

Scope 2 figure used
Market-based% change from previous year
32.34

Direction of change
Increased

Reason for changeThis year, MSCI changed its GHG data collection efforts by largely collecting actualenergy and fuel usage data as opposed to estimating usage by applying energy
intensities by space type. This allows for a more accurate accounting of GHG
emissions. However, changing this method of calculation increased the emissions. Thechange is also driven by an increase in SQF. Last year's (2017) SQF was 590,303 SQF
and emissions were 5,240.31 MTCO2e. The ratio this year is 32.34% higher.

C7. Emissions breakdowns
C7.1(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas
type?
Yes

C7.1a
(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas
type and provide the source of each used greenhouse warming potential (GWP).
Greenhousegas

Scope 1 emissions (metric tons of
CO2e)

GWP ReferenceCO2

657.42IPCC Fifth Assessment Report (AR5 –100 year)

CH4

1.79

IPCC Fifth Assessment Report (AR5 –100 year)

N2O

0.56

IPCC Fifth Assessment Report (AR5 –100 year)C7.2(C7.2) Break down your total gross global Scope 1 emissions by country/region.
Country/Region

Scope 1 emissions (metric tons CO2e)Australia

7.75

40

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Brazil0

Canada

6.13

France0.08

Germany0

China, Hong Kong Special Administrative Region

0.33

Hungary

2.3

India

28.96

Japan

21.82

Mexico0.23

Netherlands

2.35

Philippines

0Singapore

0.19

South Africa

2.28

Republic of Korea

0

Sweden1.91

Switzerland

27.06

Taiwan, Greater China

0.15

United Arab Emirates

0.01

United Kingdom of Great Britain and Northern Ireland

209.92

United States of America

322.57

China

21.78

Italy

3.94

C7.3
(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able toprovide.
By facility

C7.3b(C7.3b) Break down your total gross global Scope 1 emissions by business facility.
C7.3b ORS Upload- S1 by Business Facility.xlsx
Facility

Scope 1 emissions (metric tons CO2e)

LatitudeLongitude

C7.5(C7.5) Break down your total gross global Scope 2 emissions by country/region.

41

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Country/Region

Scope 2,locationbased(metric tons
CO2e)

Scope 2,marketbased(metric tons
CO2e)

Purchased andconsumedelectricity, heat,steam or cooling(MWh)

Purchased andconsumed low-carbon
electricity, heat, steam
or cooling accounted inmarket-based approach(MWh)Australia

45.4

45.4

55.37

0

Brazil

3.73

3.73

38.04

0

Canada

2.6

2.6

67.49

0

China

239.39239.39227.450France

4.87

2.26

70.28

0

Germany

17.12

27.43

36.01

0

China, Hong Kong
SpecialAdministrative
Region1,893.73

1,893.73

2,498.99

0Hungary188.06225.34598.890India

1,411.6

1,411.6

1,524.24

0

Italy

11.17

12.38

29.01

0

Japan

31.6

31.6

57.37

0

Mexico363.94363.9451.06

0Netherlands

11.5

15.09

802.620Philippines

314.59314.5926.09

0Singapore

39.03

39.03

626.210South Africa

33.87

33.87

82.61

0

Republic of Korea

27.59

27.59

37.07

0

Sweden

0.26

0.77

21.17

0

Switzerland

102.86

3.37

3,668.88

3,590.2

Taiwan, Greater
China

0.95

0.95

1.71

0

United Arab Emirates 13.12

13.12

21.96

0

United Kingdom ofGreat Britain andNorthern Ireland

251.89284.76525.340

United States ofAmerica

5,031.66

1,902.95

11,262.44

6,521.942

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C7.6
(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able toprovide.
By facility

C7.6b(C7.6b) Break down your total gross global Scope 2 emissions by business facility.
Facility

Scope 2 location-based
emissions (metric tons
CO2e)

Scope 2, market-based
emissions (metric tons
CO2e)

Almere, Busplein 30

11.5

15.09

Ann Arbor, 924 N.Main

26.05

31.08

Beijing, No. 6 Wudinghou Street

191.44

191.44

Berkeley, 2100 Milvia Street

122.61

101.1

Boston, 101 Federal Street

73.97

73.97

Budapest, Green house

188.06225.34

Cape Town, Kildare House, The Oval, 1
Oakdale Road

33.87

33.87

Chicago, 311 S. Wacker Drive

34.03

25.28

Conshohocken, 1100 East Hector Street

63.91

63.91

Dubai, Sheikh Zayed Road, Plot No. 327548

13.12

13.12

Frankfurt, AN DER WELLE 5

17.12

27.43

Gaithersburg, Washingtonian Centre

18.51

22.7

Geneva, 8-10 Rue de la Confederation

1.64

2.5

Geneva, Interoute Data Center, Chemin de 57.04
l'Epinglier 2, Meyrin, Room B19, Floor B

0Geneva, Place des Bergues 3

0.57

0.87

Geneva, Safe Host Data Center, 20,
Chemin Du Pre-Fleuri 20 CP 259, Room
S250

43.61

0

Hong Kong, 11 Chun Kwong Street,
Tseung Kwan O Industrial Estate805.98805.98Hong Kong, 2 Ice House Street, St George
Bldg, Marine Lot No. 286, Central

80.64

80.64

Hong Kong, Equinix Hong Kong Limited
17/f, Global Gateway 168 Yeung Uk Road
Tsuen Wan

988.07988.0743

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Hong Kong, NO. 41 Connaught Road
Central

19.04

19.04

Las Vegas, Switch Communications Group 1,185.21(NAP4) 4495 E Sahara Avenue0

Las Vegas, Switch Communications Group 1,918.01(SuperNAP8) 5225 W.Capovilla Avenue

0

London, 10 Bishop's Square251.89284.76Manila, Zuellig Building

314.59314.59Milan, Via Dante No 9

11.17

12.38

Monterrey, Ricardo Margain Zozaya #444

363.94363.94

Mumbai, Nesco IT park

1,411.6

1,411.6

New York, 7WTC, 250 Greenwich Street

402.07402.07

Norman, 201 David L. Boren Boulevard

1,134.04

1,134.04

Paris, Rue de Berri

4.87

2.26

Portland, Two Monument Square

27.82

27.82

San Francisco, 101 California

25.43

20.97

Sao Paulo, Iguatemi Office Tower

3.73

3.73

Seoul, 33 Jong-Ro, Jongno-Gu

27.59

27.59

Shanghai, 166 Lujiazui Ring Road

47.95

47.95

Singapore, 1 Raffles Quay North Tower

39.03

39.03

Stockholm, Drottninggatan 33

0.26

0.77

Sydney, 56 Pitt Street

45.4

45.4

Taipei, 1 Songzhi Road

0.95

0.95

Tokyo, 1-7-2 Otemachi, Chiyoda-Ku

31.6

31.6

Toronto, 67 Yonge street

2.6

2.6

C7.9
(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for thereporting year compare to those of the previous reporting year?
Increased

C7.9a(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined) and for each of them specify how your emissions compare to theprevious year.

44

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Change in
Direction Emissions
emissionsof change value(metric tons
(percentage)
CO2e)Please explain calculation

10.91

Decreased 0.21

In 2018, MSCI's Monterrey location
underwent lighting upgrades resulting in
a 10.91 MT CO2e emissions reduction.
This value is 0.21% (10.91/ 5,240.3),
where 5,240.3 MT CO2e is the Scope1+ Scope 2 (market-based) value from2017.

2,314.97

Increased

Scope 1+Scope 2 (market based
emissions) in 2017 was 5,240.3 MT
CO2e. Emissions resulting fromelectricity purchases and onsite
combustion were largely based onenergy intensities derived from the
CBECS database. In 2018, the Scope 1+ Scope 2 (market based) emissions
were 7,555.3 MT CO2e after accounting
for the 10.91 MT CO2e reduced fromlighting retrofit in Monterrey. In 2018,MSCI improved its GHG accounting
practices by using actual energy
consumption data versus extrapolatingbased on energy intensity. This resulted
in a 44% increase ((7,555.35,240.3)/5240.3) =44%.

Change inrenewableenergyconsumption
Other
emissions
reduction
activities

Divestment
Acquisitions
Mergers
Change in
outputChange inmethodology

44

Change inboundary
Change inphysicaloperatingconditions

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Unidentified
Other

C7.9b
(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on alocation-based Scope 2 emissions figure or a market-based Scope 2 emissions
figure?
Market-based

C8. Energy
C8.1(C8.1) What percentage of your total operational spend in the reporting year was onenergy?
More than 0% but less than or equal to 5%

C8.2(C8.2) Select which energy-related activities your organization has undertaken.
Indicate whether your organization undertakes thisenergy-related activity
Consumption of fuel (excluding
feedstocks)

Yes

Consumption of purchased or
acquired electricity

Yes

Consumption of purchased or
acquired heat

Yes

Consumption of purchased or
acquired steamNo

Consumption of purchased or
acquired cooling

No

Generation of electricity, heat, steam,or cooling

Yes

C8.2a
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks)
in MWh.
Heating value MWh fromrenewable
sources

MWh from nonTotal
renewable sources MWh

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Consumption of fuel(excluding feedstock)

HHV (higher
heating value)03,281.48

3,281.48

Consumption of purchased or
acquired electricity

10,112.1

12,218.19

22,330.28

Consumption of purchased or
acquired heat

0

0.01

0.01

Consumption of selfgenerated non-fuel renewableenergy0

Total energy consumption

10,112.1

015,499.68

25,611.77

C8.2b
(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes thisfuel application
Consumption of fuel for the generation ofelectricity

Yes

Consumption of fuel for the generation of
heat

Yes

Consumption of fuel for the generation of
steam

No

Consumption of fuel for the generation ofcooling

No

Consumption of fuel for co-generation or
tri-generation

No

C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding
feedstocks) by fuel type.

Fuels (excluding feedstocks)
DieselHeating value
HHV (higher heating value)

Total fuel MWh consumed by the organization
492.07

MWh fuel consumed for self-generation of electricity
492.0747

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

MWh fuel consumed for self-generation of heat0

Comment

Fuels (excluding feedstocks)
Natural Gas

Heating value
HHV (higher heating value)

Total fuel MWh consumed by the organization
2,789.41

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat
2,789.41

Comment
Where expressed in HHV, the HHV numbers were converted to LHV.

C8.2d
(C8.2d) List the average emission factors of the fuels reported in C8.2c.
DieselEmission factor
74.1

Unit
kg CO2 per GJ

Emission factor source
GHG Protocol Table 1. CO2 emission factors by Fuel

Comment
To calculate CO2 from diesel, MSCI used GHG Protocol’s Table 1 emission factors.
Where heat value was in HHV, MSCI converted it to LHV using the HHV to LHV
conversions.

Natural Gas
Emission factor
56.1

Unit
48

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

kg CO2 per GJ

Emission factor source
GHG Protocol Table 1. CO2 emission factors by Fuel

Comment
To calculate CO2 from natural gas, MSCI used GHG Protocol’s Table 1 emission
factors. Where heat value was in HHV, MSCI converted it to LHV using the HHV to LHV
conversions.

C8.2e(C8.2e) Provide details on the electricity, heat, steam, and cooling your organization
has generated and consumed in the reporting year.
Total Gross
generation(MWh)

Generation that isconsumed by theorganization (MWh)Gross generationfrom renewablesources (MWh)Generation fromrenewable sources that isconsumed by theorganization (MWh)Electricity 492.07

492.07

0

0

Heat

0

0

0

0

Steam

0

0

0

0

Cooling

0

0

0

0

C8.2f
(C8.2f) Provide details on the electricity, heat, steam and/or cooling amounts thatwere accounted for at a low-carbon emission factor in the market-based Scope 2
figure reported in C6.3.

Basis for applying a low-carbon emission factor
Contract with suppliers or utilities ( e.g. green tariff), supported by energy attributecertificates

Low-carbon technology typeSolar PV

Region of consumption of low-carbon electricity, heat, steam or coolingNorth America

MWh consumed associated with low-carbon electricity, heat, steam or cooling
6,521.9

Emission factor (in units of metric tons CO2e per MWh)0Comment
49

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019Low-carbon energy accounted here represents the renewable energy procured by theLas Vegas data centers that MSCI leases space in.

Basis for applying a low-carbon emission factor
Contract with suppliers or utilities ( e.g. green tariff), supported by energy attributecertificates

Low-carbon technology typeHydropower

Region of consumption of low-carbon electricity, heat, steam or cooling
Europe

MWh consumed associated with low-carbon electricity, heat, steam or cooling
3,590.2

Emission factor (in units of metric tons CO2e per MWh)0Comment
Low-carbon energy accounted here represents the renewable energy procured by the
Geneva data centers that MSCI leases space in.

C9. Additional metrics
C9.1(C9.1) Provide any additional climate-related metrics relevant to your business.

C10. Verification
C10.1(C10.1) Indicate the verification/assurance status that applies to your reported
emissions.
Verification/assurance status
Scope 1

Third-party verification or assurance process in place

Scope 2 (location-based or market-based)

Third-party verification or assurance process in place

Scope 3

Third-party verification or assurance process in place

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C10.1a(C10.1a) Provide further details of the verification/assurance undertaken for your
Scope 1 and/or Scope 2 emissions and attach the relevant statements.

Scope
Scope 1

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Limited assurance

Attach the statement
GHGVerificationStatement MSCI 2018_FINAL.pdf

Page/ section reference
Findings, Page II

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

Scope
Scope 2 location-based

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Limited assurance

Attach the statement
GHGVerificationStatement MSCI 2018_FINAL.pdf

Page/ section reference
51

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Findings, Page II

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

Scope
Scope 2 market-based

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Limited assurance

Attach the statement
GHGVerificationStatement MSCI 2018_FINAL.pdf

Page/ section reference
Findings, Page II

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

C10.1b
(C10.1b) Provide further details of the verification/assurance undertaken for your
Scope 3 emissions and attach the relevant statements.

Scope
Scope 3- at least one applicable category

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Attach the statement
52

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

GHGVerificationStatement MSCI 2018_FINAL.pdf

Page/section reference
Findings, Page II

Relevant standard
ISO14064-3

C10.2(C10.2) Do you verify any climate-related information reported in your CDP disclosure
other than the emissions figures reported in C6.1, C6.3, and C6.5?
No, we do not verify any other climate-related information reported in our CDP disclosure

C11. Carbon pricing
C11.1(C11.1) Are any of your operations or activities regulated by a carbon pricing system(i.e. ETS, Cap & Trade or Carbon Tax)?
No, and we do not anticipate being regulated in the next three years

C11.2(C11.2) Has your organization originated or purchased any project-based carbon
credits within the reporting period?
No

C11.3
(C11.3) Does your organization use an internal price on carbon?
No, and we do not currently anticipate doing so in the next two years

C12. Engagement
C12.1(C12.1) Do you engage with your value chain on climate-related issues?
Yes, our suppliers
Yes, our customers
Yes, other partners in the value chain

C12.1a(C12.1a) Provide details of your climate-related supplier engagement strategy.
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Type of engagement
Compliance & onboarding

Details of engagement
Other, please specify
MSCI expects all its vendors to follow the MSCI Supplier code of conduct which
includes specific language related to environmental issues.

% of suppliers by number
100% total procurement spend (direct and indirect)100% Scope 3 emissions as reported in C6.5
100

Rationale for the coverage of your engagement
MSCI is committed to protecting the environment and therefore expects all its Suppliers
to implement appropriate standards to minimize harm to the environment caused bytheir activities. MSCI expects Suppliers to meet or exceed the below set of principles:
Compliance with applicable environmental laws, regulations and standards –Suppliersmust be aware of and adhere to the laws relevant to the Supplier’s activities for theentire sourcing and production cycle: material sourcing – manufacturing – logistics –disposal.
SMART (specific, measurable, achievable, realistic, time-bound) environmental targets
and reporting – Suppliers need to be able to identify, measure and report at all times all
significant environmental impacts, with an emergency action plan in place.
Waste management – Suppliers are expected to handle waste in a responsible way andhave separate hazardous and non-hazardous waste management processes at all
times.
Recycling – Suppliers must actively implement processes in order to recycle material
through the E2E process of its production/service cycle.
Suppliers should avoid:- The use of scarce natural resources- Soil contamination- Dangerous substance issues – (design, packaging, transport, use, recycling).

Impact of engagement, including measures of success
N/A

Comment

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C12.1b
(C12.1b) Give details of your climate-related engagement strategy with yourcustomers.

Type of engagement
Other, please specify
Other – please provide information in column 5

Details of engagement% of customers by number
6.7% Scope 3 emissions as reported in C6.5
0

Please explain the rationale for selecting this group of customers and scopeof engagement
We believe there is a large opportunity for the global investment community toincorporate ESG considerations into their investment decisions, which will enhance
global capital flows to companies that have more favorable ESG characteristics. Our
ESG research and ratings help our customers (investors) understand the ESG
characteristics of companies and investment portfolios as well as to constructinvestment strategies to achieve their responsible investment and climate-related
objectives. The climate change team within our ESG segment supports our clients byproviding products that help them measure and report on climate risk exposure,
implement low carbon and fossil fuel-free investment strategies and factor climatechange research into their risk management processes. These products include climate
risk metrics, carbon portfolio reporting, low carbon indexes and tools to identify
cleantech and environmentally-oriented companies. Our climate change working groups
are continuously developing new models which are used by our clients in combination
with the risk analytical tools developed within our Analytics segment to manage theirclimate risk exposure. As part of its business strategy, MSCI intends to continue to focus
on and invest heavily in its ESG product offerings. We are investing heavily inbroadening, deepening and enhancing our ESG capabilities to promote the adoption of
ESG investing by the world’s leading investors. To complement our ESG productoffering, our ESG experts contribute their knowledge and expertise to furthering global
understanding of sustainability issues by publishing research and speaking atconferences.

Impact of engagement, including measures of success
MSCI measures success based on the number of customers subscribing to our climaterelated products and services, and the industry identifying us as experts for ESG Index.
MSCI’s ESG Research and Ratings are some of our most strategically important andhighest growth product offerings, with $71.4 million in revenues in 2018, representing a
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 201930.2% year-over-year increase. An example is that one of MSCI ESG’s senior
executives was recently recognized as one of the 20 most influential people in ESG
investing by Barron’s Magazine (June 2018). Other recent accolades include theBloomberg Barclays MSCI Green Bond Index being voted “best index” at theEnvironmental Finance Green Bond Index Awards for the second year (April 2018).

C12.1c(C12.1c) Give details of your climate-related engagement strategy with other partners
in the value chain.
Eco Groups
1. Local employee-driven focus groups have been established in MSCI’s offices, Berkeley(United States (US)) – in 2019, London (United Kingdom) – in 2018, Monterrey(Mexico) – in 2018, Mumbai (India) – in 2018 and San Francisco (US)- in 2019 offices.
These Employee Resource Groups (“ERGs”) aim to increase awareness of regional
staff around environmental issues and manage them over time, including throughbehavior change. Achievements include replacing kitchen and shower supplies withsustainable alternatives, installing recycling and composting bins alongside the regular
trash bins, with instructions as to how to dispose of waste correctly, distributing reusable coffee cups amongst staff, and sharing information with staff on how to reduce
plastic use both in and out of the office.
2. Global Corporate Services Department: The GCSD’s employees are incentivized totake various environmental factors (including existence of landlord-driven or local
recycling initiatives, use of sustainable and energy-efficient materials, and control
systems enabling the efficient use of power and availability of public transport for
employees) into consideration as part of MSCI’s approach to acquiring new officespace. When selecting new office space, the GCSD also considers a property’s
vulnerability to extreme weather events and natural disasters. In addition, the practicesof the GCSD have led to the purchase of energy-efficient products for MSCI’s offices
and the wide use of sustainable products including recycled and low environmental
impact materials and the elimination of single-use plastic items. We believe this has
contributed to an emissions reduction trend and MSCI believes the continued selectionof lower-impact equipment and materials will result in a further reduction in MSCI’semissions.

C12.3(C12.3) Do you engage in activities that could either directly or indirectly influence
public policy on climate-related issues through any of the following?
Direct engagement with policy makers
Trade associations
Other

C12.3a(C12.3a) On what issues have you been engaging directly with policy makers?
Focus oflegislation

Corporate Details of engagement
position

Proposed legislative solution

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

Mandatory
carbonreportingSupportMSCI engages with
Early in 2018, the EU Commission
policymakers and regulators as adopted the Action Plan on Sustainable
an individual company providing Finance, which has three objectives:
relevant information on
1. Re-orient capital flows towards
regulatory proposals affecting
sustainable investment, in order to
MSCI’s products including inachieve sustainable and inclusive
relation to Sustainable Finance. growth;
2. Manage financial risks stemmingfrom climate change, natural disasters,
environmental degradation and social
issues; and3. Foster transparency and longtermism in financial and economic
activity.
As part of this plan, the EU Commission
created a Technical Expert Group
comprised of 35 experts in Europe toassist them in the following tasks:
1. an EU classification system – the socalled EU taxonomy – to determine
whether an economic activity isenvironmentally sustainable;
2. an EU Green Bond Standard;
3. methodologies for EU climate
benchmarks and disclosures forbenchmarks;
4. guidance to improve corporate
disclosure of climate-related
information.
MSCI has been appointed as part of
the TEG. MSCI participates in theEuropean Commission’s TechnicalExpert Group (“TEG”) on Sustainable
Finance. The TEG is comprised ofmembers from civil society, academia,
the business and finance sector.

C12.3b
(C12.3b) Are you on the board of any trade associations or do you provide funding
beyond membership?
Yes

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C12.3c(C12.3c) Enter the details of those trade associations that are likely to take a position
on climate change legislation.

Trade association
Index Industry Association

Is your position on climate change consistent with theirs?
Unknown

Please explain the trade association’s position
We do not disclose a third party’s position.

How have you influenced, or are you attempting to influence their position?
MSCI participates in discussions on the regulatory proposals considered by the Index
Industry Association.

C12.3e(C12.3e) Provide details of the other engagement activities that you undertake.
UN PRI
Since 2010, MSCI has been a signatory of The Principles for Responsible Investment (PRI).
The PRI is the world’s leading proponent of responsible investment. It works to understand theinvestment implications of ESG factors and to support its international network of investor
signatories in incorporating these factors into their investment and ownership decisions. The
PRI acts in the long-term interests of its signatories, of the financial markets and economies inwhich they operate and ultimately of the environment and society as a whole. Prior to 2019,MSCI voluntarily submitted the annual PRI transparency report on behalf of MSCI ESG
Research rather than MSCI Inc. For our 2019 submission, the CRC chose to report on behalf of
MSCI Inc. given the growing emphasis on ESG considerations in our own business practices
as well as the ever-expanding range of ESG solutions from MSCI ESG Research, Index andAnalytics.
Our Global Head of ESG Research, is a member of the PRI Investment Strategies Working
Group. Other members of the ESG Research team have participated in the PRI Fixed Income
and Passive Investing Working Groups.
We have also worked with the PRI policy team to provide financial support and data to the
Global Guide to Responsible Investment Regulation. We have supported the PRI financially asa sponsor of the PRI in Person conference and other regional events and contributed to the
PRI's landmark "Financial Performance of ESG Integration in US Investing" report.
In 2018, the PRI published a study based on portfolio analytics and ESG data provided by
MSCI ESG Research to evaluate the efficacy of optimal mean-variance equities portfolios
optimized with assets that had improving ESG scores (momentum strategy) versus high58

MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019absolute ESG scores (tilt strategy) across the world and geographic regions, including the US,
Europe and Japan.
We provide the PRI with unlimited access to the MSCI ESG Research data platform to support
the PRI's engagement work. We expect to continue to support the work the PRI does to engage
with signatories, raise awareness of the benefits of ESG integration, and grow the industry.
Other
Our client research includes company-specific, industry and country reports as well as thematic
research. MSCI ESG Research continuously innovates and helps educate the public at large
on ESG trends through a variety of channels, including by speaking at a large number ofindustry and MSCI-hosted events throughout the year and is ften cited in news stories
concerning ESG issues. MSCI ESG Research participates in ESG consultations, including theEC Public Consultation on Long-term and Sustainable Investment and the FSB Task Force on
Climate-related Financial Disclosures Consultation. In relation to climate change specifically,
MSCI ESG Research offers an extensive suite of tools and data on carbon and fossil fuelexposure to help investors identify, measure, and manage their exposure to carbon and climatechange risk at the security, company, and portfolio levels. More generally, assessment ofclimate change informs the full spectrum of MSCI ESG Research products.
MSCI’s Index Client Advisory Panel is a forum organized by MSCI in Europe, Americas and theAsia-Pacific regions. Participants are invited to exchange ideas on investment problems andemerging trends such as ESG Investing and Factor investing.
MSCI facilitates a private roundtable discussion, which is led by MSCI ESG Research. This
creates a platform to exchange ideas, innovate, share best practices and help produce
standards that might benefit the industry.
On an annual basis, MSCI ESG Research seeks feedback from institutional investors through
MSCI ESG Research client consultations. This process aims to ensure transparency when
proposing methodology changes or, for example, adding new key issues to our ESG Ratingsmodel, and to help refine new product initiatives. The 2018 consultation included a global
consultation on a proposed climate stress test framework and a sandbox environment to allow
assessment of the impact of various climate scenarios on financial portfolios.
Investors, including pension funds and insurance companies, are accelerating their focus on
climate risk solutions that move beyond simple portfolio footprint reduction towards a morerounded assessment including transition risk and low carbon economy opportunities. MSCI
initiated two climate change index consultations related to climate risk in 2018. Leveraging thenew, comprehensive model from MSCI ESG Research, MSCI has been consulting on a new
climate index for the categorization and risk-scoring of corporates with respect to the low
carbon transition. Simultaneously, MSCI Analytics has been consulting on a climate stress test
mode. MSCI launched a climate index in 2019.

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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C12.3f(C12.3f) What processes do you have in place to ensure that all of your direct andindirect activities that influence policy are consistent with your overall climate change
strategy?
Under the MSCI Code of Conduct, employees are required to disclose and obtain pre-approval
from the applicable member of MSCI’s Executive Committee and the Compliance Department
to serve as a representative of MSCI on a board or committee or in another position
constituting a leadership role in industry associations or groups. In order to ensure allcommunications are consistent, public announcements and press releases are subject toreview by MSCI Legal and PR/Marketing teams. The Head of Global Communications is amember of the Corporate Responsibility Committee and involved in developing the messaging
around MSCI’s ESG practices for both internal and external purposes.

C12.4(C12.4) Have you published information about your organization’s response to climatechange and GHG emissions performance for this reporting year in places other thanin your CDP response? If so, please attach the publication(s).

Publication
No publications with information about our response to climate-related issues and GHG
emissions performance

StatusAttach the document
Page/Section referenceContent elements
Comment

C14. Signoff
C-FI(C-FI) Use this field to provide any additional information or context that you feel isrelevant to your organization's response. Please note that this field is optional and is
not scored.
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MSCI CDP Climate Change Questionnaire 2019 Wednesday, July 31, 2019

C14.1
(C14.1) Provide details for the person that has signed off (approved) your CDP climatechange response.
Row 1

Job title

Corresponding job category

Chief Responsibility Officer (CRO)

Other C-Suite Officer

Submit your response
In which language are you submitting your response?
EnglishPlease confirm how your response should be handled by CDP
I am submitting my response

Public or Non-Public Submission

I am submitting to

PublicInvestors

Please confirm below
I have read and accept the applicable Terms

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