Morgan Stanley Capital International (MSCI) is a leading provider of critical decision support tools and services for the global investment community, creating industry-leading research enhanced solutions that clients use to gain insight into and improve transparency across the investment process.
MSCI ESG Ratings aim to measure a company’s resilience to long-term ESG risks by using a rules-based methodology to identify industry leaders and laggards according to their exposure to ESG risks and how well they manage those risks relative to peers. Companies are scored on an industry-relative AAA-CCC scale across the most relevant key issues based on a company’s business model.
Various data points are assessed across 35 ESG Key Issues that focus on the intersection between a company’s core business and the industry-specific issues that may create significant risks and opportunities for the company. The Key Issues are weighted according to impact and time horizon of the risk or opportunity. All companies are assessed for Corporate Governance and Corporate Behaviour.
The categories covered in the ESG Ratings Report for Scatec are:
- Climate change, specifically focusing on carbon emissions
- Environmental opportunities, specifically within renewable energy
- Human capital, with a focus on the development of people
- Corporate governance and corporate behaviour
Scatec was rated among the top 7% within the utilities industry out of a total of 143 companies. Key positive aspects highlighted were strong governance practices aligned to shareholder interests; large proportion of renewable energy capacity compared to peers; robust initiatives to reduce greenhouse gas emission; and ample employee development initiatives in place.
Scatec’s leading performance recognised by MSCI is a confirmation of our commitment to transparency around ESG issues and our efforts to continuously improve our ESG reporting.
