MSCI expands Implied Temperature Rise metrics to funds and indexes

Expanding the tool to the fund and index level gives investors access to ITR data for more than 56,000 equity and fixed income funds through the Fund Ratings Tool, as well as index level ITRs in the MSCI Index Profile Tool. This development is part of MSCI’s ongoing commitment to provide greater transparency and clarity to climate pledges, following last year’s launch of Implied Temperature Rise, a publicly available dataset of 2,900 listed companies based on the MSCI ACWI Investable Market Index, with over 10,000 companies available to MSCI clients. The Implied Temperature Rise solution translates the alignment of a company’s current and projected emissions, within its net zero emissions budget, to an estimated rise in global temperature. By comparing an intuitive metric against crucial benchmarks, such as the 1.5°C objective of the Paris Agreement, the Implied Temperature Rise helps investors assess how their fund portfolios measure up to decarbonization targets and strengthen their engagement activity on the transition.

This analytical solution has been built to measure and disclose the alignment of portfolios as well as target set frameworks as prescribed by both the Glasgow Financial Alliance for Net Zero (GFANZ) and the Task Force on Climate-Related Financial Disclosures (TCFD) for all financial institutions.

About the Authors

Associate Director, Investment Banking

Prachurjya has over 16 years of experience in investment banking with Acuity Knowledge Partners. At Acuity, he has led sector and product-specialist pilot teams across Capital Markets, ESG, Debt Advisory, Loan Syndications, Metals & Mining and Real Estate. He has been actively involved in setting up and on-boarding new ESG Advisory, ESG DCM and Sustainable Finance teams for various bulge bracket investment banks. Within DCM and Rating Advisory, he has been instrumental in helping the clients achieve over 30% in annual savings on both regular and adhoc tasks through standardization of the outputs and deployment of our proprietary BEAT tools.

Delivery Manager, Investment Banking

Puja has 6 years of extensive experience in ESG, Climate Change & Sustainability and she is supervising the ESG team at Acuity. She also has diverse experience in conducting ESIA, EHS compliance audits, ESG Risks and Controls, EHS & ESG Due Diligence assessments. Prior to joining Acuity, she was working with companies like KPMG Global Services, EY India and ERM India. She has expertise in provisioning extensive research requirements for clients through preparation of Peer Benchmarking, Target Compilation, Sustainability report, Sustainable Finance Updates and Sectoral ESG Thematic Detailing Engagement.

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