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EU Taxonomy Reporting Has Perplexed Issuers 

Although the EU Taxonomy is a pivotal framework for assessing sustainability in economic activities, it remains a source of confusion. Its correct interpretation will be key to ensure that data is properly disclosed and reporting obligations met.

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Biodiversity and Business: Are Companies Aware of Nature’s Risks? 

Although corporate disclosures around biodiversity- and nature-related risk vary, with growing stakeholder awareness and initiatives such as the TNFD framework, we may see a move toward more standardized disclosures that could help investors better assess these risks.

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What’s Been Driving the Carbon Footprint of MSCI’s ESG Indexes? 

We analyze the index-level carbon emissions of the MSCI ACWI, ACWI ESG and Socially Responsible Investing Indexes, in terms of both financed emissions and emissions intensities, to see what the trends are and what’s driving them.

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Loss Aversion and Property-Market Liquidity 

Investors do not like to realize losses. We examine the link between this loss aversion — an observed phenomenon in commercial-property markets — and a drop in liquidity in key markets around the globe. 

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Biodiversity Funds:
Welcome to the Jungle 

Biodiversity is the new kid on the block in sustainable investing, and a lack of harmonization makes it a jungle out there. We assessed how biodiversity-labeled and biodiversity-related funds differed in sector and revenue exposure and performance. 

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Engagement Is a Powerful Force in Climate Action 

As the urgency of addressing climate change continues to grow, investor engagement could be key to holding companies accountable for their environmental impact and influencing corporate climate strategies and net-zero commitments. 

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The Potential Impact of El Niño on Sovereign Debt 

With a very strong likelihood of an El Niño event forming by the end of 2023, we take a look at the impact such events have had in the past on the debt-to-GDP ratios of global sovereigns and what this could mean for impact investors.  

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Better Incentives Could Quicken a Return to the Office 

Office vacancy has reached a record high for properties in central business districts. Forms of compensation to attract people back to offices could include improved mass transit and reduced travel time.  

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Nearshoring, Friendshoring and Reshoring: Heads Up to Equity Allocators 

Multinational corporations’ recent interest in reconfiguring their global supply chains and adopting “China-plus” manufacturing strategies has potential consequences for equity allocators, reaching across countries, sectors and themes.   

REPORT

Net-Zero Glidepaths for Fixed-Income Portfolios 

A bond portfolio generates cash flows over time that include coupon payments and the face value of matured bonds, assuming no defaults. With controlled and systematic reinvestment of this cash flow, investors can gradually decarbonize their portfolios on a glidepath.

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Unearthing Real Estate Trends in Commodity Cities 

Cities that ride booms and busts in commodity prices have in the past achieved strong outperformance in commercial-property returns during booms. Has the recent surge in commodity prices had a similar impact on returns? 

REPORT

Labeled Bonds Quarterly Market Overview Q2 2023 

We assess the latest trends in labeled bonds, from the overall market to specific bond and issuer characteristics, to identify key developments in the rapidly growing and increasingly diverse labeled-bond market. 

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Equity-Factor Commentary July 2023: Fireworks and Froth 

The risk-on market rally continued in July amid several indicators of frothiness as beta and residual volatility posted the highest factor returns in the U.S. by a wide margin and were also strong globally.

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Do Not Fear the Impact of AI on Commercial Real Estate 

Worries about artificial intelligence supplanting knowledge workers have created more pain for the office market but a broader view of the impact on commercial real estate is vital. 

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Understanding the Drivers of Transition-Risk Climate VaR 

Climate stress-testing models like MSCI Climate VaR may be complex, but their main mechanisms can be explained using linear regression. This helps transform input variables into risk outputs, making it easier for investors to understand the primary drivers.