Sumary of Equity index giant MSCI to give 10,000 firms global warming ratings:
- The firm, which runs the widely-tracked $60 trillion All Country World Index, is launching Implied Temperature Rise scores, which estimate whether a firm’s activities and plans are consistent with keeping global warming below 2 degrees Celsius.
- MSCI’s new approach converts the current and projected greenhouse gas emissions, taking into consideration emissions reduction targets, of each company to an estimated rise in global temperature.
- Projections are calculated by comparing those projected emissions with the global carbon budget that remains if the planet is to keep temperature rise this century below 2°C.
- Shell produces an implied 2C rise, having set targets to cut the carbon intensity of its products by at least 6% by 2023, by 20% by 2030, by 45% by 2035 and by 100% by 2050.”The message is to make the commitment more public,” Briand said.
- His assumption is that because MSCI’s indexes and data are used by most of the world’s big investors, companies will need to have low implied temperature rise scores to encourage those money managers to park their cash in them.