MSCI ESG METRICS

FROM MSCI ESG RESEARCH LLC

A BIG DATA APPROACH TO ESG: DELIVERING AN EXTENSIVE SET OF STANDARDIZED ESG DATA ANDSIMPLE FLAGGED METRICS THAT ARE COMPARABLE ACROSS A BROAD UNIVERSE

MSCI ESG Metrics is a tool designed to give institutional investors a broad set of standardized ESG data andsimple flagged metrics that are comparable across a broad universe of 8,500 companies in the MSCI ACWI
Investable Market Index (IMI) coverage universe. Developed based on 40 years of experience collecting,standardizing and modeling ESG metrics, the data can be used as inputs for in-house analytical models or todevelop proprietary investment strategies.

FEATURES

ESG METRICS DATASET:

56

Risk Exposure
A new risk exposure dataset that leverages
MSCI ESG Research’s proprietary ESG risk

Metrics (-1, 0, 1)

models, mapping over 50,000 individual

Simple flagged metrics comparable across all 8,500
companies in coverage-101

NEGATIVE

NEUTRALPOSITIVE

230

Standardized Underlying
Data Points

business and geographic segments to 22
macro risk factors, such as carbon regulation,water stressed regions, and corruption risks.

Practices
The practices dataset offers insight into acompany’s capabilities to manage ESG risks
or capitalizing market ESG opportunity suchas policy commitments, certifications, risk
mitigation initiatives and programs, andtargets to improve performance.

Performance
The performance dataset evaluates thecompany’s historical track record on

Additional underlying data designed to enable investors tomeasure the overall exposure of companies and portfolios
to ESG risks.

managing the specific ESG risk. Performance

8indicators where applicable.

data involves collecting, standardizing,and benchmarking a range of quantitative

Controversies
The controversies dataset offers insights

Risk Exposure Scores

into a company’s involvement in notable

Exposure scores (ranging from 0-10) measure to what
extent a company’s business is vulnerable to a particular
ESG risk. Higher scores on exposure indicate greaterrisk on the issue. The 8 scores below are available for allcompanies in the MSCI ACWI IMI coverage universe.

controversies (e.g. lawsuits, disputes,

environmental, social and governanceregulatory actions) related to the company’s
operations and/or products, possible breaches
of international norms and principles.

MSCI ESG METRICS | MSCI.COM

UNIQUE RISK EXPOSURE DATASETThe new risk exposure dataset that leverages MSCI ESG

The risk exposure metrics and underlying data

Research’s proprietary ESG risk models, mapping overindicate the level of exposure that each company

50,000 individual business and geographic segments tofaces to a given risk based on the nature of its

22 macro risk factors, such as carbon regulation, waterbusiness and where it operates. Risk exposure

stressed regions, and corruption risks.

metrics combine company-specific operational datawith macro-level data relevant to each ESG issue.

22Exposure
Metrics

8Exposure
Scores79Raw Data
Points

50,000Mapped businessand geographicsegments

8,500

All companies
in the ACWI IMIIndex covered

EXAMPLE OF RISK EXPOSURE UNDERLYING DATA: BUSINESS AND GEOGRAPHIC SEGMENT RISKEXPOSURE UNDERLYING DATA
Business Segment
Asset Percentage (%)

Business Segment Exposure to Carbon-IntensiveOperations (High, Medium, Low)

Asphalt Paving Mixtures and Blocks

5.2MediumGum and Wood Chemicals

2.1HighAsphalt Paving Mixtures and Bloacks

8.4

MediumCement, Hydraulic

27.9

High

Ready-Mixed Concrete

18.7

MediumConstruction Sand and Gravel

37.7

MediumGeographic Segment
Asset Percentage (%)

Geographic Segment Exposure to Carbon
Regulation (High, Medium, Low)

United States of America

98.7

HighAll Countries

1.3

MediumBusiness Segments

Geographic Segments

MSCI ESG METRICS | MSCI.COM

56 FLAGGED METRICS

DELIVERY OPTIONS• Simple flagged metrics comparable across all• Data Feeds• MSCI ESG Manager

8,500 companies in coverage.
• Covering risk exposure, controversies, performanceand practices.
• Available in both numeric (1,0) and non-numeric(yes, no) outputs.

ClimateINSURING
CLIMATECHANGE
RISK
ChangeACCESSTO
NaturalWATER
CapitalPollution
TOXIC
EMISSIONS& Waste

Risk Exposure

Risk Exposure

Risk Exposure• Geographic
Exposure to Carbon
Regulation (-1,0)• Business Exposure
to Operations withLand or Ecosystem
Disturbance (-1,0)• Business Exposure
to Operations
Producing HighLevels of Packaging
Waste (-1,0)• Business
Exposure to
Carbon-Intensive
Operations (-1,0)• Geographic
Exposure to Fragile
Ecosystems (-1,0)• Geographic
Exposure toClimate Vulnerable
Regions (-1,0)• Geographic
Exposure to WaterStressed Regions(-1,0)• Reliance on
Carbon-Intensive
Supply Chain (-1, 0)• Business Exposure
to Water-Intensive
Operations (-1,0)Controversies

Controversies• Climate Change
Controversies (-1, 0)• Environmental
Impacts on
Communities
Controversies (-1, 0)

Performance• Three-year trendof average carbon
emissions intensity(-1, 0, 1)• Three-year
average carbon
emissions intensity(tCO2e / USD
million sales)
relative to GICS
Industry peer
median (-1,0,1)• Operational Impacts
on Ecosystems
Controversies (-1, 0)• Environmentally
Controversial
Investments
Controversies (-1, 0)• Raw Material
ImpactControversies (-1, 0)• Water StressControversies (-1, 0)• Business Exposure
to Operations
Producing HighLevels of Toxic
Emissions andWaste (-1,0)

Environmental
OPPORTUNITIESIN RENEWABLE
Opportunities

SAFETY
Human
Product
HUMAN
CAPITAL PRODUCTANDQUALITY
CapitalLiability
MANAGEMENTSTRIKES
Stakeholder
Opposition

CorporateAND
CORRUPTIONINSTABILITY
Behavior

ENERGY
Practices

Risk Exposure

Risk Exposure

Controversies

Risk Exposure• Alternative Energy
Products andServices (1, 0)• Business Exposure
to Injury-Prone
Operations (-1,0)• Social Impacts
on CommunitiesControversies (-1, 0)• Energy Efficiency
Products andServices (1, 0)• Geographic
Exposure to Poor
Workplace Safety
Standards (-1,0)• Geographic
Exposure to
Chemical Safety
Regulations (-1,0)• Geographic
Exposure to
Corruption &Instability (-1,0)• Green Building
Products andServices (1, 0)

Controversies• Pollution
Prevention andControl Products
and Services (1, 0)• Toxic Emissions& Waste
Controversies (-1, 0)• Sustainable Water
Products andServices (1, 0)• Reliance on HighlySkilled Workforce(-1, 0)• Business Exposure
to Labor-IntensiveOperations (-1,0)• Geographic
Exposure toFrequent WorkStoppages (-1,0)Controversies• Controversial
Workplace Accidents
Controversies (-1, 0)• Discrimination
and Diversity
Controversies (-1, 0)• Controversial
Working Conditions
Controversies (-1, 0)• Collective
Bargaining andUnion Labor
Controversies (-1, 0)• Supply Chain Labor
Controversies (-1, 0)• Involvementin BusinessCommonly Reliant
on High Concern
Chemicals (-1, 0)• Exposure toBusiness Prone
to Data breaches
or Handles High
Volumes of
Customer Data (-1,0)• Social Impactsof Raw Materials
Controversies (-1, 0)• Human Rights
Concerns
Controversies (-1, 0)• Business Exposure
to Operations
Commonly
Associated with
Corrupt Practices(-1,0)

Performance• Tax Gap Greater
Than 20% (-1, 0)• GeographicExposure
to Privacy
Regulations (-1,0)• Foreign Market
Revenue Greater
Than 20% (-1, 0)• Exposure to
Business with
Product Safety
Risks (-1, 0)

Controversies

Controversies• Chemical Safety
Controversies (-1, 0)• Data Security
BreachesControversies (-1, 0)• Anti-Competitive
Behavior
Controversies (-1, 0)• Bribery andCorruption
Controversies (-1, 0)• Business Ethics
Controversies (-1, 0)• Taxes and Subsidies
Controversies (-1, 0)• Customer Fraud
Controversies (-1, 0)• Discriminatory
Access to
Basic Services
Controversies (-1, 0)• Marketing
Controversies (-1, 0)• Product Safety& Quality
Controversies (-1, 0)

MSCI ESG METRICS | MSCI.COM

ESG METRICS COVERAGE UNIVERSE
Data consistently available for every company and comparable across:

8,538

Companies in
the ACWI IMIDeveloped

Emerging

Markets

Markets

Total

Large Cap733 (8.54%)443 (5.16%)

1,176 (13.70%)

Mid Cap

917 (10.68%)

389 (4.53%)

1,306 (15.21%)

Small Cap4,271 (49.75%) 1,832 (21.34%) 6,103 (71.09%)

All

5,921 (68.97%) 2,664 (31.03%)

1,394(16.23%)

2,771(35.28%)
North America

8,585 (100%)

337(3.92%)
EM EMEAEurope

221(2.57%)
South America

66(0.77%)
Israel2,106(24.53%)
EM Asia

1,690(19.68%)
Pacific

ABOUT MSCI ESG RESEARCH PRODUCTS AND SERVICESMSCI ESG Research products and services are provided by MSCI ESG Research LLC, and are designed to provide
in-depth research, ratings and analysis of environmental, social and governance-related business practices
to companies worldwide. ESG ratings, data and analysis from MSCI ESG Research LLC are also used in theconstruction of the MSCI ESG Indexes. MSCI ESG Research LLC is a Registered Investment Adviser under theInvestment Advisers Act of 1940 and a subsidiary of MSCI Inc.
ABOUT MSCIFor more than 40 years, MSCI’s research-based indexes and analytics have helped the world’s leading investors
build and manage better portfolios. Clients rely on our offerings for deeper insights into the drivers of performanceand risk in their portfolios, broad asset class coverage and innovative research. Our line of products and services
includes indexes, analytical models, data, real estate benchmarks and ESG research. MSCI serves 97 of the top 100
largest money managers, according to the most recent P&I ranking. For more information, visit us at www.msci.com.
The information contained herein (the “Information”) may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI ESG Research. The Information
may not be used to verify or correct other data, to create any derivative works, to create indexes, risk models, or analytics, or in connection with issuing, offering, sponsoring, managing ormarketing any securities, portfolios, financial products or other investment vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future performance,analysis, forecast or prediction. MSCI ESG Research is provided by MSCI Inc.’s subsidiary, MSCI ESG Research LLC, a Registered Investment Adviser under the Investment Advisers Act of 1940.
MSCI ESG Research materials, including materials utilized in any MSCI ESG Indexes or other products, have not been submitted to, nor received approval from, the United States Securities andExchange Commission or any other regulatory body. None of the Information or MSCI index or other product or service constitutes an offer to buy or sell, or a promotion or recommendationof, any security, financial instrument or product or trading strategy. Further, none of the Information is intended to constitute investment advice or a recommendation to make (or refrain frommaking) any kind of investment decision and may not be relied on as such. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may makeor permit to be made of the Information. NONE OF MSCI INC. OR ANY OF ITS SUBSIDIARIES OR ITS OR THEIR DIRECT OR INDIRECT SUPPLIERS OR ANY THIRD PARTY INVOLVED IN THE MAKINGOR COMPILING OF THE INFORMATION (EACH, AN “INFORMATION PROVIDER”) MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACHINFORMATION PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUTLIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE INFORMATION PROVIDERS HAVE ANY LIABILITY REGARDING ANY OFTHE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCHDAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.
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MSCI ESG METRICS | MSCI.COM