MSCI Inc. (NYSE: MSCI) and BIQH Financial Data Services have formed an alliance to bring their expertise in environmental, social, and governance (ESG) data and analytics to the market. This collaboration combines MSCI’s long history of providing ESG data with BIQH’s experience in delivering a high-quality financial market data platform to financial institutions.
ESG investing is gaining popularity among investors as they seek methods to maximize their revenue while also having a positive influence on society and the environment. MSCI is a prominent source of ESG data and analytics, and its ESG ratings and scores are widely recognized and utilized by investors worldwide. Meanwhile, MSCI’s indexes will provide a benchmark against which the fund’s performance can be measured.
BIQH’s market data platform (MDP) aggregates information from a range of sources, i.e. company financial filings, news articles, index prices, trading data and third-party ESG rating providers. A combined source provides investors with a more complete picture of a company’s ESG performance. With the help of the market data platform, customers can identify new investment opportunities more accurately.
Many countries and regions have enacted legislation mandating firms to disclose information about their environmental, social, and governance performance on their investment products’ website. Companies must have reliable ESG data on the existing holdings to comply with these laws, such as SFDR. This also allows companies to demonstrate to their stakeholders, and the public that they are taking their ESG responsibilities seriously.
The BIQH Market Data Platform can standardize the data during the transmission process, making it easy to compare and evaluate. This is significant under the current situation where data can be difficult to compare and report due to a lack of common standards.
Improved risk management
ESG risks can have a significant impact on a company’s operations and financial performance. Reliable ESG data allows companies to identify and manage these risks more effectively.
The BIQH Market Data Platform can provide investors with automation tools and be-spoke business rules that help them to screen and manage ESG risks. For example, after data cleansing and validation, BIQH provides high-quality data on a company’s exposure to environmental risks such as carbon emissions or water scarcity.
What MSCI ESG data is already available at BIQH?
The BIQH Market Data Platform already holds a large amount of MSCI ESG data and helps the customer to transmit and normalize those ESG data. Currently, MSCI ESG Quality Score, environmental score, governance score, and social score are ready to use. In more details, the following attributes are also available in BIQH as required by the customer: carbon emissions, human rights, temperature rise, revenue derived from ESG impact themes, severe controversy on a certain company, etc. What’s important is that other ESG data packages can be added on-demand in the platform quickly, the BIQH Market Data Platform is agile in changing settings and switching/adding between different data packages.
In a nutshell, the collaboration with MSCI will enable BIQH to continue providing its clients with the highest level of service by utilizing the latest technology and ESG data. We look forward to working with MSCI to deliver even more value to our clients.