MSCI: Bolder climate change commitments needed in 2021

ESG trends report also exposes flaws in 'bubble' arguments

Next year will require much bolder action on climate change from investee companies, according to a new report from MSCI, which has uncovered a significant lack of progress.

Entitled 2021 ESG Trends to Watch, the report has found only 3% of the 8,900+ constituents in the MSCI ACWI index have reduced their carbon emissions in line with the 2015 Paris Climate Change agreement. While the findings recognise the stronger support climate change investments have received from investors, MSCI argues: "In 2021, however, the easy part is over, and a steeper climb starts; investors will approach a series of hard limits to decarbonising their portfolios in line with the Paris aspiration. "Although many companies have reduced their greenhouse gas emissions, the next f...