1MSCI’s Climate Transition Plan
November 2022

Overview1

The urgency of climate change action is accelerating, and sustainable investing is
growing considerably as more investors and issuers use environmental, social andgovernance (ESG) and climate data and tools to support their investment decisionmaking. At MSCI, we believe we can speed progress toward a more sustainable planet
through our ESG and climate solutions and our actions as a firm.

This report, along with the included index, provides visibility into how we are working to
reduce our own carbon footprint. MSCI has recently taken steps to further integrateawareness of climate-related risks and opportunities into our business:

1

This report contains information about MSCI that may include estimates, projections and statements relating toour business plans, objectives or expected operating results and statements regarding corporate responsibility andclimate-related plans and goals that are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. In some cases, you canidentify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,”“seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” or the negative of these terms orother comparable terminology. In evaluating these statements, you should consider various factors, including therisks and uncertainties we describe in the “Risk Factors” sections of our Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q and other reports we file with the Securities and Exchange Commission (“SEC”).
You should not place undue reliance on forward-looking statements because they involve known and unknown
risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affectour actual results, levels of activity, performance or achievements. You should not place undue reliance on
forward-looking statements, which speak only as of the date they are made. We do not undertake to update orrevise any forward-looking statements except as required by law.
The inclusion of information in this report regarding climate opportunities and risks should not be construed as acharacterization regarding the materiality or financial impact of that information with respect to MSCI. For
additional information regarding MSCI, please see our current and periodic reports with SEC, including our Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q. Given the inherent uncertainty in predicting
and modeling future conditions, caution should be exercised when interpreting the information provided.

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MSCI commits to reach net-zero CO2e emissions across the value chain by
2040 from a 2019 base year. Our science-based near-term, long-term and netzero targets have been validated by the Science Based Targets initiative (SBTi).

•

To demonstrate progress toward our 2030 near-term targets, we set 2025
milestones to achieve 100% renewable electricity, reduce our absolute Scope 1
and 2 CO2e emissions by 60%, and increase to 60% by spend our suppliers with
science-based targets, in each case from a 2019 base year.

•

We accelerated initiatives to reduce our overall environmental impact. We
increased the use of renewable electricity at our office locations, decreased ourcommuting footprint by moving to hybrid work and implemented policies topromote the use of rail and other more environmentally friendly alternatives forbusiness travel.

•

We intensified efforts to drive down emissions within our supply chain — thesource of 78% of our CO2e emissions in 2021— by developing a sustainablesupplier management program to better integrate climate considerations into our
supplier selection and prioritize our spend with suppliers aligned with our climate
goals.

•In September 2021, MSCI became a founding member of the Net Zero Financial
Service Providers Alliance, which unites leading index providers, credit rating
agencies, accounting firms, financial exchanges and other suppliers of market
infrastructure who have committed to align their products and services with thegoal of global net-zero emissions by 2050 or sooner.

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Our strategy is aligned with — and inspired by — our clients, shareholders, suppliers,
employees and the communities in which we operate. Promoting a sustainable future isboth the right thing to do and good business; we believe that our actions to reduce
MSCI’s carbon footprint will not only help lower our climate impact but also help us
strengthen relationships with clients and attract and retain top talent.

Aligning with CDP and TCFD

Our Climate Transition Plan is aligned with the global frameworks for environmental andclimate-related financial disclosures as set forth by the CDP and the Task Force on
Climate-related Financial Disclosures (TCFD). In this document, we have referenced
sections of our CDP and TCFD reports and we have included an index with the CDP Map
of Climate Transition Plan Elements and references, and a mapping of those to thesections of our TCFD report, to produce this transition plan.

Net-zero target: Commit to reach net-zero CO2e emissions across the value chain by
2040 from a 2019 base year

MSCI is seeking to achieve a 90% reduction in absolute Scope 1, 2 and 3 CO2eemissions by 2040 from a 2019 base year as stated by our long-term science-basedtarget. We would then look to use carbon offsets, as outlined by the SBTi, to offset theresidual 10% of our carbon emissions to achieve net-zero emissions.

The Paris Agreement suggests that limiting temperature rise to 1.5 °C above preindustrial levels is key to enabling a more sustainable future. According to MSCI ESG
Research’s Implied Temperature Rise analysis, our net-zero target and future emissions
pathway would align with a temperature rise of 1.3°C. That level indicates how much theInformation Classification: GENERAL

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world temperature would increase if the whole economy adopted the same carbon
undershoot, suggesting that MSCI’s current temperature-rise trajectory is aligned withthe goals of the Paris Agreement.2

We expect to continue refining our strategy to meet our goals. As this plan indicates,
MSCI strives to review and update our commitments relating to our CO2eemissions. We anticipate that MSCI’s trajectory of CO2e reductions will not be fully
linear, and our plan will evolve over time to align with the latest science, the emergenceof new and greener technologies, and as new data becomes available. As we revise ourplans, we are committed to making our approach clear and transparent by regularly
reporting our progress.

Near-term targets: Commit to reduce both absolute Scope 1 and 2 CO2e emissions by
80% by 2030 and Scope 3 absolute CO2e emissions by 50% by 2030, in each casefrom a 2019 base year
As with any long-term project and goal, we believe it is essential to set milestones along
the way to help measure progress. In line with this logic, and our support of sciencebased targets, in 2022, we filed and received verification of our near-term, long-term andnet-zero targets with the SBTi.

2

MSCI ESG and climate ratings, research and data are produced by MSCI ESG Research LLC (“MSCI ESG Research”),
a subsidiary of MSCI Inc. MSCI ESG Indexes, Analytics and Real Estate offerings are products of MSCI Inc. that use
information from MSCI ESG Research. MSCI Indexes are administered by MSCI Limited (U.K.). MSCI ESG Researchhas developed Implied Temperature Rise, a metric designed to show the temperature alignment of companies,
portfolios and funds with global climate targets. MSCI Inc. is the ultimate parent company of MSCI ESG Research.
The development of the Implied Temperature Rise metric included herein for MSCI Inc. was conducted in the samemanner and based on the same information available for other companies not affiliated with MSCI Inc., but the
metric has not been independently reviewed or audited. Due to the affiliate relationship and the potential for a
conflict of interest, this report should not be relied upon as an independent analysis of MSCI Inc. with respect tothe use of Implied Temperature Rise metric.

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5Commit to reduce absolute Scope 1 and 2 CO2e emissions by 80% by 2030 from a 2019base year

As of year-end 2019, our baseline year, roughly 10% of MSCI’s total greenhouse-gas(GHG) emissions were from Scope 1 and 2 combined, with the largest portion comingfrom Scope 2, specifically electric power.

To reduce our Scope 1 and 2 emissions, we focus on:•

Decreasing electricity consumption across our datacenters and offices.

•Managing new office growth toward locations with renewable electricity access.

•

Purchasing Energy Attribute Certificates (EACs)3.

In 2020, MSCI developed policies to enable employees to adopt hybrid work patterns,
which has led to the reduction and/or elimination of office space in some locations.
This trend continued in 2021 with a significant reduction of office space in Hong Kong;
San Francisco, California; Boston, Massachusetts; and Norman, Oklahoma. Our smaller
office footprint and adoption of a hybrid work environment shrank the carbon footprintof our physical operations. We recently reduced the size of our New York headquarters
and have committed to a significant reduction of space in Mumbai, India, one of ourlargest offices. We are currently evaluating opportunities to implement additional officelevel reductions.

In addition, we explored many opportunities related to resource efficiency andcontinually seek to do more, including by selecting office space in buildings certified by

Energy Attributes Certificates (EAC) are issued as proof of electricity produced by renewable sources.
Each EAC represents 1megawatt hour (Mwh) of green electricity.
3

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the Leadership in Energy and Environmental Design (LEED) or Building Research
Establishment Environmental Assessment Methodology (BREEAM) — with highly
efficient design, construction and operations. We continue to implement energyefficient systems and equipment and use automated lighting and air controls across
our offices.

As we adjust our offices or add new locations, we prioritize efficient space andrenewable energy accessibility. We use a comprehensive sustainability checklist toevaluate all potential new office buildings to ensure MSCI offices meet high energy
efficiency standards. For example, in 2021 MSCI’s Zurich office was established in abuilding which received LEED Gold certification and our Budapest office was refreshedwith motion-sensor controlled LED lighting and received LEED Platinum certification.

MSCI also annually reviews the acquisition of EACs to “green” the electricity we use. We
purchased, for example, unbundled EACs for most global office locations in 2021. The
newly purchased EACs covered 1,629 metric tons (mtons) of CO2e.

With this approach, we achieved in 2021:•

94% renewable electricity across all operations.

•a 75% drop in market-based Scope 1 and 2 CO2e emissions from our 2019baseline emissions.

•a 17% reduction of location-based CO2e emissions from our 2019 baseline
emissions.

Commit to reduce absolute Scope 3 CO2e emissions by 50% by 2030 from a 2019 baseyear

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To reduce our Scope 3 emissions — roughly 90% of our 2019 baseline emissions — wefocus on:•Engaging and influencing our suppliers to set climate goals similar to ours.

•

Managing business travel and encouraging virtual meetings.

•

Reducing the need for employees to commute to offices.

MSCI has created a Supplier Sustainability & Diversity Team (SS&D) within our Global
Strategic Sourcing (GSS) organization. The SS&D team evaluates MSCI’s suppliers. We
convey to suppliers MSCI’s values and expectations, including the environmental,
climate, labor, human rights, and legal and regulatory compliance principles we expect
them to uphold.
New suppliers are screened for commitment to emissions reductions, as demonstrated
by their adoption of science-based targets. Existing suppliers are also subject to similar
review and engagement discussions.

In 2022, MSCI launched a process to hold direct discussions with key suppliers that do
not have clearly defined carbon reduction targets or commitments. These discussions
include members of the GSS organization as well as senior-level MSCI management
and other relevant business stakeholders.

We manage business travel levels with emphasis on sustainability. Our Travel Policy
and processes feature:•

Guidelines that encourage virtual meetings instead of traveling.

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Requirement to use electric or hybrid vehicles if available whenever renting a caris necessary.

•

Requirement to use pre-approved hotels with strong sustainability practices.

•

Requirement to book economy instead of business for most air travel.

•

Guidelines that encourage use of rail instead of air travel; we proactively identify
for travelers city combinations where rail options are available and encouraged.

•

Guidelines that encourage use of public transportation in lieu of cars or ride/taxi
services.

•

Options for booking flight and rail presented to travelers via our online travelbooking tool, prioritized by level of emissions. Travel details, including emissions,
are noted in pre-travel approval and regularly reviewed with managers.

•

Tips for sustainable travel through a travel website and webinars aimed toeducate travelers.

Our hybrid work policies also potentially lower emissions by decreasing employee
commuting.

With this approach, we achieved a 2% drop in Scope 3 GHG emissions from our 2019baseline emissions.

Employee Engagement
In addition to taking steps to lower Scope 3 emissions, we also believe that climate
education and employee engagement on local climate action can help integrate acarbon-reduction focus across MSCI. As of December 2021, we had 22 Climate Action
Network employee resource groups across our global offices working to increaseawareness, engagement and management of local and global environmental issues.

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9These groups lead discussions on local and at-home climate aware practices such asincreasing energy efficiency, renewable energy usage and water conservation.

We set 2025 milestones to achieve 100% renewable electricity, reduce our absolute
Scope 1 and 2 CO2e emissions by 60%, and increase to 60% by spend our supplierswith science-based targets, in each case from a 2019 base year.

Our levers to achieve Scope 1and 2 emissions are as described above. To source 100%
renewable electricity for our office usage and leased data centers, we plan to purchase
EACs throughout the year to try to access renewable electricity in local markets,
including those with scarcer supplies of green electricity on the grid.

Conclusion

Our Climate Transition Plan highlights our 2025 milestones, near-term, long-term andnet-zero targets, and identifies the key levers we plan to use to achieve these goals. Our
climate transition oversight, risk management strategy, as well as other areas, are also
critical parts of our plan. Those are outlined in our 2022 CDP filing available here andour TCFD Report posted here.

To quickly access this information, we have included an index to identify all sections of
our CDP climate change questionnaire the CDP has designated part of a full transition
plan. We have also included a chart that maps the Climate Transition Plan Elements,
identified by CDP, to the corresponding sections of our TCFD report.

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CDP Map of Climate Transition Plan Elements(against the CDP 2022 climate change questions)4

Climate Transition
Plan Element

Aligned CDP CC
question (2022)

Relevance

GOVERNANCE

C1.1, C1.1a, C1.1b(Board level
oversight)

To ensure compliance and accountability for delivery of
the plan’s ambitions, board-level oversight is crucial insteering business strategy towards a 1.5°C aligned
trajectory.

C1.1d (Board
expertise on
climate related
issues)Addressing climate change requires specific expertise
related to climate change and its impacts, and thepotential direct and indirect effects on the business.
Ensuring this capability within existing governancestructures indicates an organization’s competence indelivering on its climate transition plan and increases the
chance of success.

C1.2, C1.2a (Senior
management
accountability &feedback
mechanism)

Senior management have responsibility for (1) executionof the plan, and (2) frequently reporting to the board on
progress towards realizing the plan’s ambitions.

C1.3, C1.3a(Executive
remuneration
linked toclimate KPIs)

To incentivize conscious action and commitment inrealizing the plan’s goals, it is recommended that
executive remuneration is aligned with theorganization’s climate transition plan.

CDP, CDP Technical Note: Reporting on Transition Plans, CDP_technical_note_-_Climate_transition_plans.pdf, (February 2022), page 9-13.

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C3.1* (Existence of“1.5°C world”aligned transition

An organization’s climate transition plan should:

plan within
business strategy &shareholder
feedback)-Be aligned with a 1.5°C trajectory: to signal climate
ambition.
-Be integrated into the overall business strategy: tofulfill the principle of internal coherence.
-Have a defined shareholder feedback mechanism: toincentivize regular feedback collection.

C3.3 (Link between
identified (andpotential) climate
related risks,
opportunities &company strategy)

Here, organizations can explain how climate related risks
and opportunities have led to the development of theirstrategy and climate transition plan, specifically in areasof products/services, supply/value chain, investment in
R&D and operations.

SCENARIO ANALYSIS

C3.2, C3.2a, C3.2b(Details of scenario
analysis)

Scenario analysis can be used as a strategic
tool to inform the development of the climatetransition plan, based on several potential
future climatic states.

FINANCIALPLANNING

C3.4, C3.5*, C3.5a*(Financial planningdetails associatedwith a 1.5°C world)

Financial planning is crucial when demonstrating that anorganization is aligning with climate goals, and that it will
be relevant (i.e., profitable) in a 1.5°C world.
Organizations can use these CDP questions todemonstrate how they have aligned their financial
planning with their climate transition plan. Financial
details may describe revenue, CAPEX, and/or OPEX
projections which are crucial for realizing the plan’s
ambition.

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C4.5, C4.5a (Lowcarbon products orservices)

Organizations can develop their low carbon products orservices portfolio over time to signal how they intend on
transitioning their existing assets, operations, and entire
business model towards a 1.5°C trajectory.

C4.3b (Low carbon
initiatives – direct
operations)

One of the key elements of a climate transition plan isthat it contains time-bound actions to decarbonize
business processes and implement low carbon
initiatives.

C12.1, C12.1a,
C12.1b, C12.1d,
C12.2, C12.2a(Value chain
engagement)

Organizations are facing resiliency risks in the value
chain that have material environmental and financial
implications; hence, value chain engagement plays asignificant role in realizing a climate transition plan. For
organizations with significant emissions in their supply
chain, they can leverage their buyer power and engage
their suppliers towards a 1.5°C aligned transition.

POLICYENGAGEMENT

C12.3, C12.3a,C12.3b, C12.3c(Alignment ofpublic policy
engagement withclimate ambition &strategy)

Ensuring that an organization’s internal activities aresupported by fully aligned external policy engagement(policy, law, regulation, and trade associations)demonstrates an ambitious effort towards achieving a
1.5°C world. For many companies, a successful transition
will depend on an accommodative policy landscape, thus
companies should advocate for climate-positive policies
that impact their relevant sector(s).

RISKS &OPPORTUNITIES

C2.1, C2.2
(Process for
identifying
climate relatedrisks &
opportunities)

To demonstrate forward planning (which is crucial for a
climate transition plan), an organization’s transition planshould include or reflect a process for identifying,assessing, and responding to climate related risks andopportunities.

C2.3, C2.3a(Climate relatedrisks – risks,potential financial
impact andresponse strategy)

Details of the risks posed to an organization by climaterelated issues, the estimated potential financial impactof these risks at the corporate level, and the response
strategy to manage these risks.

VALUE CHAINENGAGEMENT &LOW CARBONINITIATIVES

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TARGETSSCOPE 1, 2 & 3
ACCOUNTING, WITH
VERIFICATION

C2.4, C2.4a(Climate related
opportunities –opportunities,
potential financial
impact andresponse strategy)

Details of the opportunities posed to an organization by
climate-related issues, the estimated potential scale ofthese opportunities at the corporate level, and the
response strategy required to take advantageof these opportunities.

C4.1*, C4.1a*,C4.1b*(Emissions
reduction
targets – absolute& intensity)

The transition plan includes near-and long-term, verified
science-based targets which
are in line with the latest climate science, with
time-bound KPIs.

C4.2a*, C4.2b*(Other climate
related targets)

Ambitious climate transition plans will include otherclimate related targets, such as but not limited toincreased low carbon energy consumption or production
targets.

C4.2c* (Net-zerotarget)

The plan includes a net-zero target, in line with the latest
climate science, with timebound KPIs

C5.2, C6.1, C6.3,
C6.5, C10.1a,
C10.1b, C10.1c(Comprehensive
and third-party
verified emissions
accounting)A climate transition plan should be accompanied by acomplete, accurate, transparent, consistent, andrelevant inventory of all three scopes of emissions. Any
individual organization may find it important to fully
disclose to C5 – C10.
• Third-party verification is necessary for credibility andtransparency on progress against a transition plan.
• Companies should calculate and disclose all material
categories of scope 3 and provide an explanation for
categories that are not relevant

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The above sections also map to our TCFD report:5

Climate Transition Plan Element
Governance
Scenario Analysis
Financial Planning
Value Chain Engagement & Low Carbon
Initiatives
Policy Engagement
Risk & Opportunities
Targets
Scope 1, 2 & 3 Accounting with
Verification

TCFD Section
Governance
Strategy
Strategy
Strategy
Strategy
Risk Management
Metrics & Targets
Metrics & Targets

Notes below:•

Carbon emissions metrics for 2019, 2020 and 2021 have been verified with limited
assurance. Subsequently, 2019 and 2020 emissions have been re-baselined for MSCI’s
2021 acquisition of Real Capital Analytics. Our carbon metrics may differ from thosepreviously published due to retroactive recalculations made in accordance with the GHG
Protocol.**Greenhouse Gas Protocol A Corporate Accounting and Reporting Standard REVISED EDITION. World
Resources institute. Copyright © World Resources Institute and World Business Council for Sustainable
Development, March 2004 ISBN 1-56973-568-9. Page 35-37.
https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf#page=37•

5

MB or market-based: A method to quantify the scope 2 GHG emissions of a reporter
based on GHG emissions emitted by the generators from which the reporter
contractually purchases electricity bundled with contractual instruments, or contractual
instruments on their own. LB or location-based: A method to quantify scope 2 GHG
emissions based on average energy generation emission factors for defined geographic
locations, including local, subnational, or national boundaries.

CDP, CDP Technical Note: Reporting on Transition Plans, CDP_technical_note_-_Climate_transition_plans.pdf, (February 2022), page 8.

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Source: GHG Protocol Scope 2 Guidance, An amendment to the GHG Protocol Corporate
Standard, World Resource Institute, 2015. Page 26. Scope 2 Guidance_Final_Sept26.pdf
Scope 2 Guidance_Final_Sept26.pdf (ghgprotocol.org)•

Our renewable electricity percentage is reported based on originally verified electricity
consumption value and does not give effect structural changes (such as acquisitions ordivestments).
We currently plan to purchase energy attribute certificates and renewable energy
certificates locally in the regions where we have a presence (offices and data centers).
As we seek to purchase renewable electricity to try to achieve 100% renewableelectricity, it may not be available in all of the local markets where we operate. In thatcase, to achieve our renewable electricity goals, we may purchase enough renewableelectricity in certain locations in order to offset our inability to purchase EACs in otherlocations.
For our short-time-horizon 2025 carbon reduction and supplier engagement milestones,
we may exclude any mergers and acquisitions, should they occur prior to or in 2025, in
those calculations due to the potentially short time to act to adjust emissions or for
suppliers to set science-based targets.

•

For the purposes of our 2025 supplier engagement target, suppliers are the third parties
we directly contract with to provide goods and services that support the operations ofour business.

•

MSCI plans to review its sustainability goals from time to time, including alignment withnew or updated relevant principles and frameworks, as and when they are released, withthe aim of aligning with strong sustainability practices. We will review our goals in caseof material changes in the scope, methodology and KPIs. Such review may result in
updates to our goals. We will seek to be transparent and to report on our progressagainst our goals and any changes to our goals over time.

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