MSCI：2024年值得關注的可持續性和氣候趨勢報告（英文版）（38頁）.pdf

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1、MSCI ESG Research LLCWelcome to the 2024 edition of MSCI ESG Researchs Sustainability and Climate Trends to Watch(formerly known as ESG Trends to Watch,see what we did there?).Yes,in 2023,much attention has been devoted to the controversy around ESG investing.While reports of ESGs demise have been o

2、verstated,it is fair to say the industry is in a period of transition.Confusing terminology,definitions and labels have fueled challenges to ESGs credibility from both skeptics and idealists alike.A positive outcome of the current backlash may be that years of inconsistency finally give way to great

3、er clarity around language,goals and intentions.Setting abbreviations aside,it has become clear over the last decade that environmental,social and governance risks are financial risks.What does that look like for the year ahead?Well,2023 is virtually certain to go down as the hottest year on record(

4、so far),underscoring the immediate and tangible challenges posed by climate change for households,workers and economies with risks likely to only grow over time.The widespread adoption of AI is reshaping our work landscape and transforming how companies deliver value.Issues like forced labor and def

5、orestation,once relegated to ethical considerations,are suddenly turning up as regulatory risks with serious financial implications.When we add inflation and geopolitical instability to the mix,it becomes crucial to ask whether corporate directors are up to the task.Amid the challenges,there are sil

6、ver linings.The low-carbon energy transition could present a hefty investment opportunity.Coupled with an expansion in primary investment,private capital is poised to play an outsized role in climate finance.Beyond climate,nature and biodiversity have emerged as priority areas to tackle,with sustain

7、ability-oriented investors asking how to minimize harm to ecosystems or how to contribute positively to nature-based solutions.As sustainable investment matures,regulators around the world are taking steps to enhance clarity for the end investor.In the European Union,the initial round of Sustainable

8、 Finance Disclosure Regulation(SFDR)reporting brought a steep learning curve,while in the U.S.,the Securities and Exchange Commissions“fund names”rule seeks to provide clarity in a less prescriptive way.For many of us,2023 was spent doing the hard work of tracking and complying with evolving regulat

9、ions.But as the dust settles,we expect innovation to return in 2024,informed by a clearer articulation of investment objectives and higher-quality disclosures from investors and companies alike.As you dig into the trends on the following pages,youll find questions and thoughtful analyses from our gl

10、obal research team.Were especially pleased to include contributions from our newest colleagues in MSCI Private Capital Solutions and MSCI Carbon Markets(formerly Burgiss and Trove Research).We hope youll find some useful insights and new ideas for the year ahead.Happy reading!Laura NishikawaHead of

11、ESG Research New YorkA welcome from our new head of ESG research 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 3 1.Extreme weather hits home and work 2.Whos minding the shop?Spotlight on corporate oversight3.Managing AI:The basics still ma

12、tter4.Supply-chain due diligence becomes the law as regulators target action alongside disclosure5.Regulation drives more corporate climate disclosures,but mind the fine print 6.The SFDRs unintended consequences for emerging markets7.Private debt takes a seat at the climate-transition table8.Investi

13、ng in nature591317 21252730 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 3 This document is research for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to inte

14、rpret any performance information.Nothing herein is intended to promote or recommend any product,tool or service.For all references to laws,rules or regulations,please note that the information is provided“as is”and does not constitute legal advice or any binding interpretation.Any approach to compl

15、y with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority,as needed.Research InsightsMSCI ESG Research LLCContentsTHE TRENDS TO WATCH EDITORIAL TEAMAcknowledgementsArun Sharvirala TorontoAura Toader LondonJamie Lambert LondonMeggi

16、n Eastman London Bentley Kaplan Cape TownLiz Houston LondonSK Kim SeoulJonathan Ponder TorontoAND ADDITIONAL THANKS TOMSCI.COM|Page 4 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the e

17、nd of this document.MSCI.COM|Page 5 Research InsightsMSCI ESG Research LLC4.Supply-chain due diligence the law as regulators action alongside disclosureHeat domes,atmospheric rivers,orange skies and unbreathable air.Shockingly unprecedented climate disasters and increasingly severe weather have pepp

18、ered the globe in the last few years.No longer an abstract future concern,physical climate impacts are quite literally hitting home and work for millions of people,as well as the companies that rely on them.As the economic effects ripple outward with social and structural consequences yet to be full

19、y understood,adaptation is becoming a must.As we move through 2024,we may see more examples of how extreme weather is affecting where and how people live and work and what that means for the companies that serve and employ them.Cody DongLondonLiz Houston LondonMatthias KemterLondonHeat domes,atmosph

20、eric rivers,orange skies and unbreathable air.Shockingly unprecedented climate disasters and increasingly severe weather have peppered the globe in the last few years.No longer an abstract future concern,physical climate impacts are quite literally hitting home and work for millions of people,as wel

21、l as the companies that rely on them.As the economic effects ripple outward with social and structural consequences yet to be fully understood,adaptation is becoming a must.As we move through 2024,we may see more examples of how extreme weather is affecting where and how people live and work and wha

22、t that means for the companies that serve and employ them.Homeowners feel the pinchIn 2023,major insurers retreated from Florida and Californias homeowner insurance markets.As a result,individual households may find themselves having to weather unexpected costs to protect their homes.Policy efforts

23、could help plug some gaps,but there may be longer-term implications for regional economic health and labor availability.For investors,the questions here are largely macroeconomic:What happens to the business environment as climate hazards affect where people choose to live and work?And how much will

24、 they have left over after paying all the costs of housing?The rise in the average cost of U.S.homeowners insurance between 2001 and 2020 was notable up to 145%and well in excess of the 61%increase in median household income over the same period.As climate change bites harder,more expensive policies

25、 and fewer options might worsen the financial burden on households already trying to navigate an inflationary economy.Research InsightsMSCI ESG Research LLC1.Extreme weather hits home and workCody DongShanghaiLiz Houston LondonMatthias KemterPotsdam1 Michael Blood,“California insurance market rattle

26、d by withdraw of major companies.”Associated Press,June 6,2023.2“An In-Depth Guide About Homeowners Insurance.”Meadowbrook Financial Mortgage Bankers Corp.,April 18,2023.3“Median Household Income in the United States.”Federal Reserve Economic Data,Federal Reserve Bank of St.Louis.Accessed on Oct.13,

27、2023.TABLE OF CONTENTSResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 6 Exhibit 1:Climate hazards may add to the pressures on homeowners-insurance affordability*Cost of insurance as a percentage of medi

28、an household income vs.(minus)national average.Cost of homeowners insurance also includes cost of flood insurance,which is usually purchased separately in the U.S.*Acute-climate-hazard percentile score of 75 or more in 2050 under the Network for Greening the Financial Systems 3-degree scenario,accor

29、ding to MSCI Physical Hazard Metrics.A hazard percentile score of 75 for an asset in the corresponding region implies the asset experiences more hazards than 75%of global assets(i.e.,assets in the MSCI ACWI Index).Acute hazards of MSCI Physical Hazard Metrics include tropical cyclones,coastal floodi

30、ng,fluvial flooding,river low flow and wildfires.While the average risk levels of some states appear to be moderate,city-and county-level risk levels may vary depending on locations.Data as of September 2023.Sources:MSCI ESG Research,Policy Genius,World Population View and Quote Wizard-3.0%-2.0%-1.0

31、%0.0%1.0%2.0%3.0%4.0%5.0%OklahomaNebraskaArkansasMississippiLouisianaKansasKentuckyTexasMissouriFloridaTennesseeAlabamaSouth DakotaMontanaNew MexicoColoradoSouth CarolinaGeorgiaNational averageWest VirginiaNorth DakotaIndianaIowaNorth CarolinaArizonaMinnesotaIllinoisWyomingMichiganOhioIdahoRhode Isl

32、andNevadaAlaskaMarylandWisconsinCaliforniaPennsylvaniaMaineVirginiaConnecticutNew YorkMassachusettsWashingtonDelawareDistrict of ColumbiaOregonVermontUtahNew HampshireNew JerseyHawaiiHomeowners insurance affordability vs.national average*Physical climate risk to watch(At least one acute physical cli

33、mate risk at first percentile)*States with the least affordable homeowners insurance relative to local income River low flowWildfireTropical cycloneClimate hazard that presents the greatest risk,statewide:Intense,but localized hazards(e.g.,tropical cyclones in parts of Louisiana)may not present a st

34、ates greatest risk,on averageHomeowners are already looking to limit their exposure to some of these costs more than 80%of U.S.homebuyers are now factoring in physical climate risk when shopping for a home.4 In response to these intensifying hazards,insurance regulators,such as the National Associat

35、ion of Insurance Commissioners,have been asking for better disclosure from insurers on their climate-related risks.5 But for homeowners,the affordability of policies is likely to remain a key question.Options to limit the social impact of rising climate risk could include prioritizing support for vu

36、lnerable households.6 In Oklahoma,Arkansas and Mississippi,homeowners insurance relative to income is already among the least affordable in the U.S.,and all three states are facing higher-4“Consumer Housing Trends Report 2023.”Zillow,Aug.23,2023.5 The National Association of Insurance Commissioners

37、has strengthened regulations for insurers to disclose climate-related risks,aligning with the recommendations by the Task Force on Climate-related Financial Disclosures(TCFD).Some state regulators now mandate TCFD-aligned reporting,and New York and Connecticut have published detailed guidance on cli

38、mate risk management for firms to implement.6 Wesley Muller.“Fortify Homes grants seek to lower insurance costs for Louisiana property owners.”Louisiana Illuminator,June 15,2023.Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this

39、 document.MSCI.COM|Page 7 than-average risk exposure from acute climate hazards.But even for states with more affordable insurance,future climate impacts may cause longer-term premium hikes and fewer choices.For example,in Hawaii,a state with some of the cheapest homeowners insurance in the U.S.,a d

40、eadly wildfire in August 2023 may already have insurance companies reevaluating their coverage.7 Workers feel the heatThe extraordinary heat waves of recent summers have sparked complaints and threats of industrial action from workers at firms such as UPS and Amazon as they struggled to cope with th

41、e global rise in temperatures.8 Rising levels of heat and humidity make work more difficult and hold back productivity,even without disruption caused by walkouts.There are questions here for policymakers,companies and workers themselves.For investors,the closest signposts are:Which companies are boo

42、sting the climate resilience of their workplaces,and where are the literal hotspots where frayed labor relations pose a threat to operations?Higher wet-bulb globe temperatures(WBGTs)a measure that combines both heat and humidity can severely impact human health and functioning.The danger of higher W

43、BGTs has long been understood for outdoor industries that require physical activity and cannot be temperature-controlled.But as WBGTs rise,the impact and risks are spreading indoors.We assessed different economic activities on their physical-exertion requirements and corresponding prevalence of air

44、conditioning,looking at the potential impact on revenues from lower worker productivity.The results helped explain why logistics firms,in particular,have become vulnerable.Following this logic,manufacturing and mining companies could be next.By 2050,if CO2 emissions have risen sharply,9 the average

45、logistics-warehouse worker in New York City could lose almost 50%more productivity to heat than they did in 2020.And that only counts productivity lost while at work not the additional losses that could come from labor disputes or increased worker absences due to heat-related illnesses.This analysis

46、 opens a new frontier in our understanding of the risks in managing the workforce of the future.Traditionally,measures such as revenue per employee,workforce size,geographical location or a history of unrest have been used to understand challenges in maximizing productivity.These measures still prov

47、ide important insight and would have pointed to postal and courier services as the highest-risk area within logistics as a whole.But as we look to a hotter future,new measures of risk and new ways of managing it will be critical.7 Alex Eichenstein.“Will the Maui Wildfires Cause Insurance Companies t

48、o Rethink Coverage in Hawaii?”Honolulu Civil Beat,Aug.30,2023.8 Dharna Noor.“Were going to see workers die:extreme heat is key issue in UPS contract talks.”Guardian,July 23,2023.Suhuana Hussain.“What its like working at Amazon during a Southern California heat wave.”Los Angeles Times,Sept.21,2022.9

49、Shared socioeconomic pathways(SSPs)are climate-change scenarios of projected global socioeconomic changes up to 2100.The IPCC Sixth Assessment Report assessed the projected temperature outcomes of a set of five scenarios based on the framework of the SSPs.The names of these scenarios consist of the

50、SSP on which they are based(SSP1-SSP5),combined with the expected level of radiative forcing in the year 2100(1.9 to 8.5 W/m2).In the fossil-fuel-intensive scenario,SSP5-8.5,CO2 emissions triple by 2075 compared to historical levels.Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights res

51、erved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 8 Exhibit 2:Labor-management risk exposure for the 10 most heat-vulnerable economic activitiesAnalysis covers constituents of the MSCI ACWI Index,categorized using NACE(European classification of economic activities)secti

52、on codes,with the 10 most heat-vulnerable economic activities included in the chart.Our assessment of the vulnerability of each activity is based on the productivity loss at a WBGT of 22C,looking at physical activity and prevalence of air conditioning a higher value implies a higher vulnerability.Ou

53、r assessment of exposure to traditional labor-management-related risks includes elements such as revenue per employee,workforce size,geographical location and a history of unrest,with a higher score implying a higher exposure to productivity-related risks.Data as of October 2023.Source:MSCI ESG Rese

54、arch6.95.46.35.86.27.65.35.95.86.70.02.55.07.510.00200400600800Agriculture,forestry and fishingConstructionTransporting and storageMining and quarryingManufacturingAccommodationElectricity,gas,steam and airWater supply,sewerage,etc.Administrative and support servicesWholesale and retail tradeEconomi

55、c activityVulnerability to heat and humidity(%relative to the MSCI ACWI Index average)Exposure to traditional labor management risks(0-10,10 being highest)2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 9 Research InsightsMSCI ESG Research L

56、LCFrom climate change to geopolitics to workers who stubbornly refuse to return to the office,risks and opportunities are multiplying and amplifying the challenges involved in running a company.A range of scandals has sharpened the regulatory gaze on banks,risk expertise and auditors.CEOs are turnin

57、g over faster,and boards are competing for expertise on unfamiliar topics.10 Corporate governance is changing as a result.If oversight is a spotlight,in 2024 it might be one with some fresh bulbs.For investors,this raises some serious questions:Who exactly is minding the shop,and do they have what i

58、t takes to do the job well?Auditing the auditorsOne of the most dramatic changes weve observed over the last year has been in the behavior of audit regulators,which is sparking fresh attention to audit practices,board oversight and the quality of auditors themselves.2.Whos minding the shop?Spotlight

59、 on corporate oversightAhasan AminTorontoCarrie Wang New YorkAnqi LiangFrankfurtHarlan Tufford TorontoMoeko PorterTokyoJonathan PonderTorontoTanya MatandaToronto10 Falling retention rates for CEOs were observed across all MSCI ACWI Index constituents,whereby the absolute number of CEOs that held the

60、 role for at least four years fell by 6%from the periods of 20162020 and 20182022.TABLE OF CONTENTSResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 10 Auditors validate financial reporting,but its not al

61、ways easy to assess the quality of their work or the track record of the audit firms.In 2023,however,audit regulators improved access to assessment data and audit firms engagement processes across several markets.This could well be an inflection point in transparency and enforcement efforts.11 Preli

62、minary findings are striking across multiple markets,regulators spotted far more audit deficiencies and levied more financial penalties in 2023 than previous years.As of September 2023,financial penalties across three major regulators the Public Company Accounting Oversight Board(PCAOB)in the U.S.,F

63、inancial Reporting Council(FRC)in the U.K.and National Financial Reporting Authority(NFRA)in India were up 302%,compared with 2022.12 In the U.S.,we found that detected deficiencies in audit engagements spiked 203%in the same period.13 While regulatory probes could impact investors portfolio compani

64、es,greater scrutiny and transparency also present a unique opportunity for investors to assess the suitability of specific auditors and vote their proxies accordingly.This information could also bear on investment decisions,as potential audit deficiencies may make it harder to detect financial risks

65、 at investee companies.Exhibit 3:Regulatory penalties and deficiency rates by yearData reflects year-by-year comparison of total regulatory penalties levied(PCAOB,FRC,NFRA)and detected-deficiency rates for audit engagements by regulatory agencies with sufficiently granular disclosure(PCAOB).Fine val

66、ues and deficiency rates are collected from public disclosure provided by the regulators mentioned.Foreign-exchange rates as at the end of 2022.Issuers covered include all within the purview of these regulators,including voluntary registrants with the PCAOB.Data as of Sept.1,2023.Sources:MSCI ESG Re

67、search,PCAOB,FRC and NFRA26.4%28.5%28.7%58.3%0%10%20%30%40%50%60%0204060801001202020202120222023Net fines(USD mil.)Average detected audit deficiency rate(%)11“Fact Sheet:PCAOB Secures Complete Access to Inspect,Investigate Chinese Firms for First Time in History.”PCAOB,Dec.15,2022.12 Data accessed i

68、n September 2023,through public regulatory disclosures.13 Deficiencies as defined by relevant regulatory authority.Analysis of the U.S.based on firm inspection reports from the PCAOB.Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of

69、 this document.MSCI.COM|Page 11 14 Based on analysis as of Sept.21,2023,of 460 banking constituents of the MSCI ACWI Investable Market Index(IMI),within the regional-banks sub-industry(n=234)and the diversified-banks sub-industry(n=226),as defined by the Global Industry Classification Standard(GICS)

70、.GICS is the global industry classification standard jointly developed by MSCI and S&P Global Market Intelligence.15 Emelin Denis.“Enhancing gender diversity on boards and in senior management of listed companies.”OECD Corporate Governance Working Papers No.28,OECD,2022.16 Constituents of the MSCI A

71、CWI Index,based on analysis of data up to Sept.12,2023.17 We assess expertise based on a review of director biographies.Financial expertise reflects professional experience(e.g.,as auditors,accountants and CFOs)and credentials(CFAs and accounting designations).Industry expertise reflects executive e

72、xperience at a company in the same industry as the company where the director serves.Risk management expertise reflects specific professional or academic experience related to risk management(e.g.,experience as a chief risk officer,actuarial training and a risk management consulting practice).Genera

73、l statements about“risk management expertise”are not sufficient.Refer to“Board Key Issue”within the MSCI ESG Ratings Methodology for further information.Investors might also look at the audit and risk-oversight capabilities of the boards of companies in their portfolios.The potential consequences of

74、 weak oversight were highlighted by 2023s U.S.banking crisis and the failure of Credit Suisse.We found that almost a quarter(24%)of the global banks we analyzed had been working with the same auditor for more than two decades,which may compromise independence.14 And while thats not necessarily probl

75、ematic on its own,42%of these companies also lacked an industry expert on their audit committee,and a majority(54%)had no risk management expert on the board.If the capabilities and track record of the outside auditor are essential to manage risks in a shifting landscape,boards own capabilities are

76、no less so.The good news is that many boards apparently recognize this fact.Building better boardsBoards have always needed the right mix of skills,expertise and backgrounds to effectively oversee their firms.But defining that mix has never been harder.Risk matrices have ballooned to include ever mo

77、re strategic threats geopolitics,AI and CEOs sex lives come to mind while investors and regulators are pushing boards to diversify their members.15 These pressures are felt keenly by boards nominating committees in particular,given the observed decline in CEO retention rates across MSCI ACWI Index c

78、onstituents.The challenge for nomination committees may now be to balance adding new skills to address these emerging risks with maintaining boardroom basics.In 2023,global large-cap companies16 saw an overall decrease in the number of board seats held by people who possess each of the three core co

79、mpetencies we track:financial expertise,risk management expertise and industry expertise.17 The prior year saw a deficit in two of these three skills,despite the average size of boards increasing in 2022 and holding steady in 2023.These recent declines contrast with the six-year period between 2016

80、and 2021,during which there was a net increase in board members with each of these skills.This does not mean these boards have suddenly become bereft of core skills.Most boards still had multiple directors with financial,risk management and industry expertise.Nonetheless,nominating committees appear

81、 to be prioritizing new skills.To find out which,we used generative AI to read the biographies of directors first elected in 2022 and 2023 and assign skills to each.Fittingly,technology and cybersecurity were the most commonly identified areas of expertise after general management experience.Other t

82、op-10 skillsets included engineering,ESG/sustainability and manufacturing/logistics.Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 12 Exhibit 4:Net change in director expertise,2016-2023This chart show

83、s the number of new directors assessed as possessing a skill who were appointed to a board during a year minus the number of existing directors assessed as possessing a skill who left a board during the same year.Board composition was evaluated as of Sept.12 in every year.Includes current and former

84、 directors of constituents of the MSCI ACWI Index as of Sept.12,2023(2,679 issuers;49,354 board memberships).Source:MSCI ESG Research-200-100010020030040050060020162017201820192020202120222023Financial expertiseIndustry expertiseRisk management expertiseNet change in total board members with experti

85、seThis rising demand may make finding candidates who are not already filling director roles elsewhere more difficult.Notably,we have observed that female directors,directors with risk management expertise and those with financial expertise tend to sit on more boards than average.18 This was more pro

86、nounced among nonexecutive directors,raising concern over time commitments for those directors who are most crucial to the independent oversight of management.18 Based on analysis of 23,711 nonexecutive board seats across constituents of the MSCI ACWI Index(n=2,686)as of Sept.25,2023.Boards of direc

87、tors(one-tier board structure)and supervisory boards(two-tier board structure)were considered in this assessment.2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 13 Research InsightsMSCI ESG Research LLCGenerative AI has grabbed the lever of

88、technological change and looks poised to disrupt sectors from finance to health care.Policymakers,academics and industry leaders are actively debating how best to realize the upside potential while reining in the possibility of disaster.And while some risks do look monumental,others are more mundane

89、 and more within companies direct control.So as the scramble ensues,and AI rollouts are urgently scheduled,investors might well be thinking about guardrails.What are companies current approaches to risk management,regulatory compliance,privacy and talent management?And how might they build on those

90、existing best practices to counter new risks?Data privacy:As regulators race to catch up to the tech,companies must catch up to the regsGenerative-AI models and applications are opening up new ways in which consumers personal data can be used.Trained on massive datasets,generative-AI applications li

91、ke search or personal assistance tools may harvest behavior data without clear consent,19 for example,and then use it to further train models,20 while image-rendering apps may collect users biometric data without stating any purposes other than completing the service.Policymakers have begun moving t

92、o protect their citizens privacy rights in response.The EUs General Data Protection Regulation has centered around user rights,consent and secondary purposes,as well as a“privacy-by-design”principle in product development.21 But thats evolving.Cautionary voices from the AI developers community have

93、recommended self-governing Yoon Young ChungBostonSiyu Liu New YorkYe Jun KimSeoul3.Managing AI:The basics still matter19 Matt Burgess.“ChatGPT Has a Big Privacy Problem.”Wired,April 4,2023.20 Nicholas Carlini.“Privacy Considerations in Large Language Models.”Google Research Blog,Dec.15,2020.21“Regul

94、ation(EU)2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data,and repealing Directive 95/46/EC(General Data Protection Regulation)(Text with EEA relevance).”Eu

95、ropean Commission,April 2016TABLE OF CONTENTSResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 14 22 Markus Anderljung et al.“Frontier AI Regulation:Managing Emerging Risks to Public Safety.”arXivpreprint

96、 arXiv:2307.03718(2023),OpenAI,as of August 2023.23“EU AI Act:First regulation on artificial intelligence.”European Parliament,August 2023.guidelines covering privacy and the ethical development of AI products.22 And the EUs proposed AI Act includes a comprehensive governance framework for AI system

97、s,from ethical product development to extending best practices for data privacy.23To get a sense of how ready companies are for the evolving AI regulatory landscape,we looked at three indicators as a proxy for the ability to protect consumer data from misuse or exploitation.Our analysis suggests tha

98、t technology companies involved in the development of both AI foundation models and applications may need to integrate more-effective guardrails,while those developing AI-driven applications for consumer use may need to expand their privacy provisions to ensure safe deployment.Exhibit 5:Companies ac

99、ross the AI value chain may need better guardrails and privacy provisionsUniverse of analysis:83 companies with three or more patents in areas related to“generative AI”(Google Patent search terms:generative AI,large language model,deep learning and neutral networks)that were constituents of the MSCI

100、 ACWI Index,as of Sept.25,2023.Companies were then grouped into two camps:1)those involved in both AI foundation-model training and development of applications,such as companies in semiconductors and semiconductor equipment,interactive media and services and software and services;and 2)those mainly

101、engaged in developing applications leveraging AI technologies,such as health-care and consumer-goods companies.Source:MSCI ESG ResearchPrivacy rights for users(access,modify,delete)Users opt-in,or collected data has no secondary purposePrivacy-by-design integrated into product developmentApplication

102、 development(n=53)DidnotreportbestpracticeReportedbestpractice23%77%37%63%46%54%48%52%20%80%33%67%Model training&application development(n=30)DidnotreportbestpracticeReportedbestpracticeResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end

103、 of this document.MSCI.COM|Page 15 24 In 2023,IBM,BT and Dropbox announced AI-induced hiring freezes or cuts to their workforce:Brody Ford.“IBM to Pause Hiring for Jobs that AI Could Do.”Bloomberg,May 1,2023.Mark Sweney.“BT to axe up to 55,000 jobs by 2030 as it pushes into AI.”Guardian,May 18,2023.

104、Ingrid Lunden.“Dropbox lays off 500 employees,16%of staff,CEO says due to slowing growth and the era of AI.TechCrunch,April 27,2023.25“GPTs are GPTs:An Early Look at the Labor Market Impact Potential of Large Language Models.”Working paper by OpenAI,OpenResearch and University of Pennsylvania,Aug.22

105、,2023.26 High-growth technology industries include clean energy,AI,next-generation communications and advanced manufacturing,among others,as mentioned in the report:“Chipping away:assessing and addressing the labor market gap facing the U.S.Semiconductor Industry.”Semiconductor Industry Association

106、and Oxford Economics,July 2023.Talent management:Minding the gapThe combination of job cuts and workforce transformation,driven by the adoption of generative-AI technologies,have become a reality as companies seek to unlock the full potential of labor-productivity improvements.24 As much as 80%of th

107、e U.S.workforce could have at least 10%of their tasks affected by the introduction of generative AI.25 But its a two-way street:AI may displace human tasks,but it could also enhance human productivity when workforces are trained with the necessary new skills.Which companies will invest in their empl

108、oyees alongside AI,and which will limit their focus to cutting costs?Despite job cuts,high-growth technology industries desperately need new talent.There could be a projected talent gap of 1.4 million workers in these industries in the U.S.by 2030,including computer scientists,engineers and technici

109、ans.26 We used companies current workforce-related efforts to gauge their capacity to adjust to the realities of the workplace in the AI era by examining two key areas:their efforts to upskill existing employees and their strategy for acquiring any new talent required for their next growth phase.We

110、found that utilities,commercial-and professional-services companies and REITs appeared better prepared for workforce transformations on average,while companies in real-estate management and development,software and services,technology hardware and equipment and media and entertainment lagged on thes

111、e measures.But effective talent strategy is complex,and companies across the spectrum may need to take a closer look at their human-capital investments to fully reap the benefit of AI-powered productivity gains.Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to

112、the disclaimer at the end of this document.MSCI.COM|Page 16 Exhibit 6:Key measures of companies preparedness for workforce transformation,by industry groupWe analyzed two workforce-related indicators,“Professional-development degree programs and certifications”and“Formal talent-pipeline-development

113、strategy,”for companies in industry groups where we identify talent scarcity as one of the important risk drivers for long-term financial performance.The analysis covers constituents of the MSCI ACWI Index belonging to one of these industry groups(n=1,213)as of Sept.30,2023.We excluded industry grou

114、ps with fewer than 15 constituents.Source:MSCI ESG Research0%20%40%60%80%Real estate management&developmentSoftware&servicesTechnology hardware&equipmentMedia&entertainmentHealth care equipment&servicesPharmaceuticals,biotechnology&life sciencesInsuranceBanksFinancial servicesSemiconductors&semicond

115、uctor equipmentEquity real estate investment trustsCommercial&professional servicesUtilitiesUpskilling&talent pipeline in placeUpskilling support onlyTalent strategy only 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 17 Research InsightsMS

116、CI ESG Research LLCCole MartinLondonLiz Houston LondonKuldeep YadavSydneyComplex,global supply chains are a fact of modern-day business.When constructed well,these chains offer specialization,efficiency and competitive advantage.But they are not without risk,from key-material shortages to quality-as

117、surance failures.The sheer number of players involved at each stage of production can make it difficult to keep track of whos trading with whom.For major brands,the actions of a subcontractor somewhere deep in the chain can cause real reputational harm.But key regulators are now raising the stakes s

118、ignificantly further.New policies are making companies explicitly responsible for what happens all the way back to the source and may impose a hefty penalty on those found lacking.Policymakers are coming at the issue from different angles,both environmental and social.In an example of the first,EU r

119、egulation focused on preserving nature and biodiversity will soon come into effect and require companies to prove that products sold in the EU dont contain commodities produced on recently deforested land.27The EU has also been active on the social side of supply chains,and it is far from alone.Requ

120、irements meant to put curbs on modern slavery have been passed and proposed in several large markets,and they are increasingly requiring due diligence that is,preventive actions in addition to risk assessments and reporting.In all cases,the key questions for companies and investors alike are:Whos re

121、ady to act,and how are they going to solve the traceability problem?4.Supply-chain due diligence becomes the law as regulators target action alongside disclosure27 “Regulation 2021/0366(COD).”European Commission,Nov.17,2021.TABLE OF CONTENTSResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All ri

122、ghts reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 18 28“Missing the Forests for the Food.”MSCI Research,June 2023.(Client access only)29 Using a combination of data from MSCI ESG Research and CDP Forest and referencing food-products constituents of the MSCI ACWI

123、Investable Market Index.30 Regulation 2021/0366(COD).”European Commission,Nov.17,2021.31 This will be completed via a due-diligence statement that involves providing the geolocated coordinates of“the plots of land where the commodities were produced,”along with other elements such as an annual risk

124、assessment and a description of risk-mitigation practices,including relevant policies and a demonstration of how the data was gathered.Companies importing commodities from countries ultimately deemed to have reduced risks of deforestation,along with small and medium-sized enterprises,will have reduc

125、ed reporting requirements.32 For example,see:Felix Thompson.“Covantis blockchain platform for soft commodities trade goes live.”Global Trade Review,March 3,2021.Following the food chainThe EUs deforestation law applies to a wide variety of commodities and finished products,but it takes only one indu

126、stry to bring the challenge into focus.Lets take food as an example.Food products can have astonishingly complex supply chains,especially when incorporating raw inputs like cocoa,coffee,palm oil and soybeans.These ingredients are largely sourced from emerging markets,where monitoring and reporting c

127、an be patchy.But the days of shrugging off the difficulty of tracing commodities are fast coming to an end.New anti-deforestation and corporate due-diligence laws in the EU have put traceability front and center.28 And 2024 may be the year we find out which companies can respond to this new regulato

128、ry pressure and actually report on where their ingredients are sourced.Coming to grips with multiple tiers of any supply chain can be messy,but a quick glance at current traceability efforts for food production reveals a scene not unlike a two-year-olds dinner.As of September 2023,only 11%of food-pr

129、oducts companies that relied on soybeans had traceability programs in place,and only 8%of those relying on cocoa.29 Under the EUs new anti-deforestation law,30 companies sourcing or selling any of these and other commodities(and their derivatives)in the blocs market will soon need to prove they did

130、not come from deforested land.31 Incremental improvements are not going to cut it food-products companies will need a sea change in their traceability efforts.This may draw new players into the market that can offer high-tech solutions to the problem:satellite monitoring for crops,electronic tagging

131、 for cattle and block-chain for grain.Whether thats an agricultural-technology startup with deft timing and a tracing tool,a collaboration between industry participants32 or something out of left field the opportunity is there for any large food company that can crack this tracing challenge as compe

132、titors are soon to feel the regulatory squeeze.Traceability isnt just about protecting the environment,though.Working conditions in supply chains have been a source of concern for decades and now some jurisdictions are forcing companies to try to do something about it.Research InsightsMSCI ESG Resea

133、rch LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 19 33 Measured as constituents of the MSCI ACWI Index as of October 2023.34 The CSDDD,which requires environmental and human rights due diligence,was adopted by the European Parliament

134、on June 1,2023,and is now entering inter-institutional negotiations until formal adoption(not expected until sometime in 2024).35“Trade Statistics.”U.S.Customs and Border Protection,accessed Oct.8,2023.36 As of April 25,2023,the EUs Legal Affairs Committee adopted its position on the proposed CSDDD,

135、including calling for fines of“at least 5%”of net turnover.The proposed directive has not yet been agreed and is subject to change or withdrawal.For more details,please see:“Corporate sustainability:firms to tackle impact on human rights and environment.”European Parliament Press Room,April 25,2023.

136、Exhibit 7:Commodity traceability has a long way to go,including for companies that depend on them010203040506070Cattle productsPalm oilSoybeanCocoaTotal companiesReported traceability programNo reported traceability programAnalysis includes food-products constituents of the MSCI ACWI Investable Mark

137、et Index,as of Oct.17,2023,with at least 20%estimated revenue reliant on either cattle products(n=75),soybean(n=73),cocoa(n=36)or palm oil(n=86).Companies may be included under more than one commodity.The revenue-reliance data used in the chart is derived from the“Raw Material Sourcing”key issue,par

138、t of the MSCI ESG Ratings model.Traceability is a combination of MSCI data and company disclosures to CDP Forest and/or Cocoa Barometer.Data as of October 2023.Sources:MSCI ESG Research,company disclosures,Cocoa Barometer and CDP ForestBreaking the modern-slavery chainWeve seen a marked increase in

139、recent years in the volume and stringency of modern-slavery-related regulations for companies and,in some regions,for investors.We estimate that about 79%of global large-cap companies33 were subject to at least one such regulation,as of late 2023,increasing to 83%once the EU Corporate Sustainability

140、 Due Diligence Directive(CSDDD)is adopted.34 Modern-slavery regulation is not new,but has been evolving and growing in reach.Once limited to voluntary reporting,several regions now include rules on exactly what companies must disclose.The value of goods stopped at the U.S.border because of forced-la

141、bor concerns in the first 11 months of 2023 was almost three times that of FY2022.35 Under the CSDDD,due diligence will become mandatory,with possible financial penalties of up to 5%of a companys global turnover and improved access to justice for victims.36 Will financial institutions also have to c

142、omply?Its unclear at this stage,but we may find out in 2024.Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 20 37 Such as the OECD Guidelines for Multinational Enterprises.CSDDD aside,human rights(and b

143、y extension,modern-slavery)due diligence already forms part of the regulations covering sustainable investments in the EU.The Sustainable Finance Disclosure Regulation requires a“do no significant harm”assessment of investee companies,which includes reporting on violations of,and lack of processes t

144、o ensure compliance with,global norms.37 And the EU Taxonomy Regulation introduced the concept of minimum safeguards,whereby even the greenest investments cannot be“taxonomy-aligned”unless they,too,adhere to those global norms.Regulations on modern slavery have increased the risk of operational disr

145、uption,reputational damage,civil liabilities and financial penalties for companies and are raising the bar on what can be considered for portfolios of“sustainable”investments.Investors have more reasons than ever to take a closer look at how comprehensively companies are addressing this risk.Exhibit

146、 8:Modern-slavery-related regulations and reporting requirements*U.S.legislation referred to here applies to companies doing business in California,while exposure number refers to total U.S.*Final wording of EU CSDDD still to be confirmed and formal adoption is not expected until sometime in 2024.Da

147、ta as of Oct.6,2023.Source:MSCI ESG ResearchRequirements of legislationPublic statementRequirement for a public anti-slavery or modern-slavery report with no mandatory content?Risk assessmentRequirement for assessing risk exposure to modern slavery in supply chains?Risk disclosureRequired to publicl

148、y report on this risk exposure?Compliance reportingRequirement for compliance disclosure in public modern-slavery reports?%Exposed%MSCI ACWI Index,by market capitalizationDue diligenceCompanies must commit to ongoing monitoring of risks,tracking of mitigation actions and to report ongoing progressUS

149、*(Calif.)Yes62.8%UKYes3.7%SwitzerlandYesYesYes2.4%CanadaYesYesYes2.8%NorwayYesYesYesYes0.2%Australia(Federal)YesYesYesYes1.7%FranceYesYesYesYesYes2.9%NetherlandsYesYesYesYesYes1.0%GermanyYesYesYesYesYes2.0%EU*YesYesYesYesYes12.1%2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the

150、 end of this document.MSCI.COM|Page 21 The next few years could see a game-changing volume of corporate climate disclosures become available to global investors.The regulatory drive behind mandatory reporting is substantial.It covers a range of major markets,and theres more to come.And while it will

151、 no doubt place a certain burden on firms not already in the habit of this sort of measurement and disclosure,it holds out the promise of richly enhancing investors and financiers ability to make properly informed decisions and comparisons.But as to whether that promise becomes reality well,the devi

152、l is in the details.Disclosure regulation:The ISSB is coming soon to a market near youFollowing the launch of the International Sustainability Standards Boards(ISSB)disclosure standards in mid-2023,a number of jurisdictions have announced plans to implement ISSB-aligned reporting rules within their

153、local regulatory frameworks over the coming year or so.38 As 2024 unfolds we may see whether the speed,scale and rigor with which they implement the ISSB standards matches the ambition for it to become a global baseline for sustainability reporting.Some jurisdictions have taken the lead and have pro

154、posed detailed ISSB-aligned disclosure requirements.In some cases,these build on existing disclosure regulations based on the recommendations by the Task Force on Climate-related Financial Disclosures(TCFD).The TCFD was officially incorporated into the ISSB in 2023.Research InsightsMSCI ESG Research

155、 LLC5.Regulation drives more corporate climate disclosures,but mind the fine print38“IFRS-ISSB issues inaugural global sustainability disclosure standards.”International Financial Reporting Standards Foundation(IFRS),June 2023.Mathew Lee New YorkElchin MammadovLondonEmma WuSingaporeZohir UddinLondon

156、TABLE OF CONTENTSResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 22 39“European Commission,EFRAG and ISSB confirm high degree of climate-disclosure alignment.”IFRS,July 31,2023.40“Update on consultation

157、 on enhancement of climate disclosures under ESG framework.”Hong Kong Exchanges and Clearing Limited,November 3,2023.41“UK Sustainability Disclosure Standards.”Department for Business and Trade,August 2023.42“Exposure Draft ED SR1 Australian Sustainability Reporting Standards Disclosure of Climate-r

158、elated Financial Information.”Australian Accounting Standards Board,Oct.27,2023.43 Takashi Nagaoka.“Future of Integrated Thinking and Reporting in Japan and Globally.”Financial Services Agency,June 12,2023.44“Singapores Sustainability Reporting Advisory Committee Recommends Mandatory Climate Reporti

159、ng for Listed and Large Non-Listed Companies.”Sustainability Reporting Advisory Council,July 6,2023.In the EU,companies will need to report along the lines of the European Sustainability Reporting Standards,which are designed to be interoperable with the ISSB.39 Hong Kong was expected to introduce t

160、he worlds first set of ISSB-specific rules in January 2024 but postponed to January 2025.40 The U.K.is set to launch its own ISSB-aligned disclosure standards for registered companies by the summer of 2024,41 while Australia intends to finalize its ISSB-aligned reporting framework for large firms by

161、 July 2024.42Looking further down the road,ISSB-aligned disclosures are expected to become mandatory in Japan43 and Singapore in 2025.44 However,the worlds two largest economies,the U.S.and China,have yet to announce any formal plans to introduce ISSB-aligned reporting frameworks.Exhibit 9:The ISSBs

162、 disclosure standards are being adopted at different speeds around the worldData as of October 2023.Source:MSCI ESG ResearchExisting TCFD-aligned rulesEndorsement of ISSBStatus of mandating ISSBExpected dateof ISSB implementationLevel of assurance potentially requiredCompanies potentially in scope o

163、f ISSB rulesLocal ISSB expert bodyAustralia2024BrazilNot confirmedNot confirmedCanadaNot confirmedNot confirmedChinaNot confirmedNoneNot confirmedEuropean Union2023Japan2025Not confirmedHong Kong2025IndiaNot confirmedNoneNew Zealand2023NigeriaNot confirmedNoneNot confirmedSingapore2025SwitzerlandNot

164、 confirmedNoneNot confirmedSouth AfricaNot confirmedNot confirmedTaiwan2027NoneUnited Kingdom2024Not confirmedUnited StatesNot confirmedNoneFormally endorsed alreadyNo formal endorsement yetNot started yetPre-proposalProposalNear finalIn forceStage of implementationNot mandatoryOnly Scope 1 and 2 fo

165、r nowScope 1,2 and 3Full limitedFull reasonableLevel of assurance requiredMandatoryPartially mandatoryTo become mandatoryVoluntaryYes,industry participationYes,but regulator ledListed companiesNon-listed companiesListed financial institutionsRegulated financial institutionsResearch InsightsMSCI ESG

166、Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 23 45 The company examples provided here are illustrative only and are not a commentary on any individual companys practices.46 Brookfield Asset Managements 2022 sustainability rep

167、ort(p.4)states that it“does not address the sustainability practices of Oaktree Capital Management,”in which it owns a majority interest.The Carlyle Groups 2022 sustainability report did not include its majority-owned portfolio company NGP Energy Capital Management,LLC.Ed Davey.“Emissions Declaratio

168、ns by Equity Firm Carlyle Under Question.”Associated Press,Sept.26,2022.47 Chubu Electric Power Co.,Inc.did not account for JERA Co.,Inc,a JV it established with Tokyo Electric Power Company in its direct(Scope 1)emissions profile in 2021(p.20).48 Centrica originally excluded a gas-related business

169、in its 2021 annual report(p.246),citing plans for its sale.The business was later included in its 2022 annual report(p.262).49 Snam S.p.A.,based on its 2022 sustainability report(p.81,82,84)and Enagas,S.A.,based on its 2022 annual report(p.61,69).Location-based emissions reporting reflects the avera

170、ge emissions intensity of grids on which energy consumption occurs.Market-based emissions reporting reflects how a company chooses to buy its energy and focuses on specific contractual arrangements.The widely accepted standard-setter for emissions reporting,the Greenhouse Gas(GHG)Protocol,currently

171、allows both location-and market-based approaches for Scope 2 emissions.Switching between methods may affect the comparability of company emissions.The GHG Protocol is reviewing this dual-reporting approach,and published the full scope of comments received in favor of continuing dual reporting or pic

172、king one over the other on their webpage,“Survey on Need for GHG Protocol Corporate Standards and Guidance Updates.”July 2023.50 Greg Ritchie.“An ESG Loophole Helps Drive Billions into Gulf Fossil Fuel Giants.”Bloomberg,July 11,2023.As ISSB standards are gradually rolled out,investors will watch two

173、 things closely.First,the speed at which they will be able to access new disclosures and any fresh insights into the performance of investee companies on climate.Second,the consistency of disclosures across different regions:Without a harmonized approach,it will be much harder to draw meaningful con

174、clusions when comparing performance globally.The rise of orphaned emissions?Reading the fine print of sustainability reportsAs the low-carbon energy transition encounters headwinds from inflation and higher input costs,companies may be tempted to slow down plans to decarbonize.But walking back clima

175、te promises can draw criticism.And it may be these sorts of criticisms that have given rise to footnotes and exceptions in climate reporting that allow companies to stay connected to certain fossil-fuel assets without counting their emissions in top-line tallies.Going into 2024,it may be increasingl

176、y important to read the fine print to sort the active transition plans from the differences in accounting.We have seen companies employ several methods to reduce their reported emissions:45 Excluding the emissions of assets or subsidiaries that are not wholly operated by the company joint ventures(J

177、Vs)are relatively common in energy exploration.46 Deconsolidating emissions of pollutive assets after transferring them into a new JV or spinoff,while continuing to incorporate their share of net income.47 Excluding emissions from business units that are planned for sale.48 Switching from location-b

178、ased to market-based emissions accounting.49 Structuring finance as corporate debt issued by a special-purpose vehicle with a lower reported emissions footprint,rather than linked to specific fossil-fuel projects.50 Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refe

179、r to the disclaimer at the end of this document.MSCI.COM|Page 24 This complicates emissions calculations and apples-to-apples comparisons of different companies or of year-over-year trends,because fundamental data(i.e.,profits,oil and gas reserves,refining capacity,power generation,etc.)may be repor

180、ted based on ownership stakes,but not the associated emissions.Our research on four publicly traded utilities that had omitted some direct emissions from their reporting by attributing them to a combination of JVs,subsidiaries and investments,and/or switching to market-based emissions accounting fou

181、nd they were excluding a wide range(17-95%)of what their overall emissions footprint could be.Although these gray areas in emissions-reporting practices may ultimately be clarified by regulations,in the interim,investors may need to be wary of“orphaned emissions.”Exhibit 10:Reported vs.adjusted emis

182、sions for four publicly listed utility companiesActual company names anonymized.Company A excluded JVs,subsidiaries and investments.Company B excluded assets held for sale and an entire business segment and switched to using market-based accounting for its overall emissions.Companies C and D both ex

183、cluded JVs,subsidiaries and investments and switched to using market-based accounting for their overall emissions.Data as of September 2023.Source:MSCI ESG Research,public company disclosures5%22%39%83%95%78%61%17%02004006008001,0001,2001,4001,6001,8002,000Utility company A(2021)Utility company B(20

184、21)Utility company C(2021)Utility company D(2022)Scope 1+2 emissions(thousand tonnes of CO2equivalent)Includes assets held for sale,previously excluded business segment,location-based emissions accountingIncludes location-based emissions accounting and JVs or subsidiaries or investmentsIncludes JVs,

185、subsidiaries and investmentsReported Scope 1+2 emissionsExcluded from Scope 1+2 emissions 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 25 Research InsightsMSCI ESG Research LLC6.The SFDRs unintended consequences for emerging marketsSimone

186、 Ruiz-Vergote FrankfurtRaphael Klein Zurich51 “Global Financial Stability Report.”International Monetary Fund,October 2023.52“Commission Delegated Regulation(EU)2022/1288-.”EU,April 2022(Annex 1 lists the PAIs).“Sustainable Finance Disclosure Regulation(EU)2019/2088.”EU,2019(Article 2(17)defines the

187、 requirements for a sustainable investment).To meet net-zero ambitions by 2050,we need USD 5 trillion in global investments every year between now and 2030.And 40%of that needs to go to emerging markets.51 But with the first major round of reporting in the books in 2023,its become apparent that effo

188、rts to direct this capital might bump into an unexpected and unintended obstacle in the form of the EUs Sustainable Finance Disclosure Regulation(SFDR).In a nutshell,there just arent that many emerging-market firms that meet the SFDRs high bar for a sustainable investment.How will emerging-market in

189、vestors approach this dilemma,and will regulators address any unintended restrictions in forthcoming legislative reviews?The SFDR came about together with the EU Taxonomy and the European Green Deal,all part of an ambitious package intended to reorient financing and business to a more sustainable ec

190、onomy and drive toward net-zero.So where are the roadblocks coming from?EU funds with a sustainability objective(Article 9 funds)need to consider“principal adverse impact”indicators(PAIs),as prescribed by the SFDR under the principle of“do no significant harm”(DNSH).52 (Not as)easy as PAIsWhen we lo

191、oked at PAIs that had good data availability and were suited for quantitative thresholds,we saw key implications for both emerging-and developed-market issuers.Across all sectors,the most striking differences were in social indicators(PAIs 11 and 13).In both cases,emerging-market issuers fell short

192、far more often than their developed-market peers.They also tended to trail on carbon-and energy-related indicators(PAIs 2,3 and 6).TABLE OF CONTENTSResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 26 53“

193、Funds and the State of European Sustainable Finance.”MSCI ESG Research,July 2023.SFDR Article 8 and 9 funds collectively accounted for over EUR 6 trillion in assets as of April 2023(55%of assets under management in Europe).While the DNSH consideration is only required for Article 9 funds,Article 8 f

194、unds are often built referencing PAIs as the social or environmental characteristics they aim to improve on.54 Based on the forthcoming“European Supervisory Report to the European Commission on the Commission Delegated Regulation(EU)2022/1288.”European Supervisory Authorities.The EU Commission is ex

195、pected to legislate changes to the SFDRs regulatory technical standards,including the PAIs.This is separate from the ongoing consultation on the SFDR primary legislative text,which is expected to take several years before coming into effect.The upshot of emerging-market companies failing to meet the

196、 DNSH criteria is that they effectively become ineligible for many investors portfolios.53 Key sectors to a net-zero transition,like utilities,are particularly disadvantaged compared to their developed-market peers.And for markets that desperately need transition capital,this would be a big blow.But

197、 the door has not shut completely;legislative revisions to the SFDRs DNSH approach are anticipated some time in 2024.54 Investors may be watching for any changes that affect how their capital is steered and for any shift in the balance between sustainable-investment objectives and imperatives for a

198、global climate transition.Exhibit 11:Emerging-market companies may find it harder to meet criteria for select PAIs than their developed-market peersAnalysis based on constituents of the MSCI ACWI Index as of June 2023,which included 1,205 emerging-market issuers and 1,490 developed-market issuers.We

199、 compared the percentage of emerging-market issuers in each sector that pass the PAI criteria to the pass rate for their developed-market counterparts.Thresholds are set at the level of the applicable universe(the worst 10%of performers)and at the sector level(the worst 5%of performers get screened

200、out)for PAIs 2,3 and 6.PAI 11 is a pass or fail(building on reported policy data as per the forthcoming review of MSCI SFDR PAI 11);PAI 13,board diversity,requires a minimum of one woman.A negative figure means the pass rate was higher for developed-market companies while a positive figure means the

201、 pass rate was higher for emerging-market companies.Sectors were defined by the Global Industry Classification Standard(GICS).GICS is the global industry classification standard jointly developed by MSCI and S&P Global Market Intelligence.Source:MSCI ESG ResearchCommunication services-30-40-20-10102

202、030400PAI 2Carbon intensity(EVIC)PAI 3GHG footprint(sales)PAI 6Energy intensity for high-impact climate sectorsPAI 11Mechanisms to monitor compliance with international normsPAI 13Board diversityConsumer discretionaryConsumer staplesEnergy-0.2-3.60.9-27.4-0.42.1-1.0-1.0-0.62.0-12.4-0.2-3.6-2.67.8-0.

203、4-1.2-3.4-1.0-7.4-2.1-28.30.0-1.50.0-5.20.4-1.9-0.30.1-2.81.0-10.3-13.9-9.2-9.6-5.3-7.3-31.1-17.9-24.7-22.4-5.4-14.0-11.8-8.3-15.7-15.8-13.0-13.6-17.9-27.3-20.8-26.1-29.9FinancialsHealth careIndustrialsInformation technologyMaterialsReal estateUtilitiesGICS sectorHigher pass rate for emerging relati

204、ve to developed marketsHigher pass rate for developed relative to emerging markets 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 27 Research InsightsMSCI ESG Research LLCMichael Ridley LondonSylvain VanstonParisAbdulla ZaidBostonJakub Mali

205、chHong KongUnlisted assets have seen staggering growth and now account for more than 25%of major asset owners portfolios.55 Private-market participants have an important role to play in the transition to a net-zero world by channeling capital toward less emissions-intensive investments and green sol

206、utions.56 And with the low-carbon transition estimated to cost up to USD 100 trillion,opportunities to provide financing could prove plentiful.57 However,this comes with structural challenges for private-asset owners and managers.While listed-asset markets are more transparent and face higher public

207、 scrutiny,private markets are relatively opaque.This obscurity has fueled concerns that“dirty”assets divested from public markets may have ended up in private-asset portfolios.58 More generally,it may leave investors in the dark about transition risk.Thats starting to change,though.And as data becom

208、es more available,some of those myths and misconceptions can be dispelled and private-market investors can move forward with genuine insights into climate risk.7.Private debt takes a seat at the climate-transition tableAnett HusiBudapest55“Global Pension Assets Study|2023.”Thinking Ahead Institute,W

209、illis Towers Watson,2023.56 In line with broadly accepted climate scenarios and their investment mandates.57 Delphine Strauss and Emma Agyemang.“The$100tn path to net zero.”Financial Times,Sept.6,2023.Shamik Dhar and Brian Davidson.“An investors guide to net zero by 2050:Understanding the investment

210、 risks and opportunities created in what may be the largest redeployment of capital in history.”BNY Mellon Investment Management and Fathom Consulting,October 2022.58 Sarah Murray.“Can Private Equity Meet Public Responsibilities?”Financial Times,October 11,2023 Nina Lakhani.“Private Equity Still Inv

211、esting Billions in Dirty Energy Despite Pledge To Clean Up.”Guardian,Sept.14,2022.TABLE OF CONTENTSResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 28 59 Carbon-intensity estimates are only calculated fo

212、r companies within the MSCI Private Capital Solutions data.Therefore,properties,natural-resource investments and infrastructure assets generally do not have available estimates yet.The aggregate investment valuation is almost USD 4 trillion,corresponding to 90%of the Burgiss Manager Universe,in port

213、folio companies with carbon-intensity estimates:96%in private equity and 57%in private debt.60“The MSCI Net-Zero Tracker.”MSCI ESG Research,May 2023.61 Carbon-price data from the World Banks Carbon Pricing Dashboard.Data as of March 31,2023.62 The carbon-risk estimation methodology relies on the por

214、tfolio companys revenue carbon-intensity estimate(tCO2e/USD million revenue)and the difference between the hypothetical global carbon-price floor of USD 75/tCO2e and the existing carbon price in the companys geographical location and sector(USD/tCO2e)from the World Banks Carbon Pricing Dashboard.EBI

215、TDA Margin Shock=Revenue Carbon Intensity x Carbon Price.For further information,see:“Climate Transition Risk Part Three:Are Private Asset Managers Ready for Stricter Climate Regulations.”MSCI Private Capital Solutions(formerly Burgiss),2023.Increasing visibility into private assets carbon intensity

216、Until recently,the general lack of transparency in the private markets meant that measuring assets carbon intensity was intensely difficult.Now its starting to get easier.While reported data is still quite scarce,estimates are becoming more available.Leveraging some of this analysis,we did find real

217、 differences in estimated carbon intensity between public equities and private-equity funds.But contrary to conventional wisdom,the numbers suggested that carbon intensity is lower in private-equity funds59 than it is in public markets perhaps not so“dirty”after all.60Insight into the carbon intensi

218、ty of different types of asset classes is an important first step.But lower carbon intensity at a headline level doesnt mean that the entire asset class faces lower transition risk.Investors concerned about the potential impact of higher carbon prices on their portfolio may choose to dig a little de

219、eper.Better data=better risk assessmentsTransition risk is multifaceted and may affect different assets differently depending on how it plays out.As but one example,we estimated the impact of a hypothetical global carbon-price floor of USD 75/tCO2e on the EBITDA margins of the underlying private por

220、tfolio companies across different forms of private debt.Under this particular scenario,and after accounting for any existing carbon prices,61 distressed-debt funds appeared to be facing the highest levels of climate-transition risk compared to other private-equity or-debt asset classes.62 In this mo

221、del,private companies in distressed-debt funds portfolios may see an average decline in their EBITDA margins of 133 basis points in an environment with a carbon-price floor of USD 75/tCO2E.There are,of course,many other potential scenarios to analyze,with varying degrees of complexity.But for invest

222、ors,the universal need to make those analyses useful is data.And while we noted that more private-asset emissions data is becoming available,many of those figures are estimated based on public-market data because thats where a majority of reported numbers can be found.Research InsightsMSCI ESG Resea

223、rch LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 29 SeniorMezzanineDistressedGeneralistOtherBuyoutExpansion capitalGeneralistOtherVenture capital-160-140-120-100-80-60-40-200 200 40 60 80 100Estimated change in EBITDA margin(basis poi

224、nts)Private equityPrivate debtScope 1 carbon intensity(tCO2/USD mil.EVIC)Going into 2024,we have our eye on prospects for an increase in reported private-market data.The ESG Integrated Disclosure Project(IDP)is one example of an initiative that could encourage more consistent private-market disclosu

225、re and facilitate material comparison between assets and firms financed in private markets:In the future,participants may be able to compare actual reported private-market emissions data.63Exhibit 12:Carbon intensity vs.estimated change in EBITDA margin when carbon price moves to USD75/tCO2eCarbon-i

226、ntensity estimates are calculated only for companies within the MSCI Private Capital Solutions data universe.Therefore,properties,natural-resource investments and infrastructure assets generally do not have available estimates yet.The aggregate investment valuation is almost USD 4 trillion,correspon

227、ding to 90%of the Burgiss Manager Universe,in portfolio companies with carbon-intensity estimates:96%in private equity and 57%in private debt.The carbon prices are based on the World Banks Carbon Pricing Dashboard.Data as of June 2023.Source:MSCI ESG Research and MSCI Private Capital Solutions(forme

228、rly Burgiss)63 See“ESG Integrated Disclosure Project(ESG IDP).”ESG IDP,2023.2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 30 Nature and biodiversity have rapidly moved up the global regulatory agenda in recent years and captured investors

229、attention.Nature is irrevocably interlinked with climate,but the possibility of biodiversity collapse presents an additional range of systematic risks at least as far-reaching as those of climate change.The World Economic Forum estimates that more than half of global economic output is at least mode

230、rately dependent on nature.64 Mitigating these risks calls for the preservation and restoration of nature.Investors are starting to tackle that challenge in a variety of ways.One is attempting to measure where portfolio impacts occur,as a first step to managing or reducing them.Another is finding in

231、vestment opportunities in nature conservation or ecological-improvement projects,which are becoming increasingly available to private investors through mechanisms like debt-for-nature swaps and carbon credits.Debt-for-nature swaps allow countries to refinance their debt in return for commitments to

232、ecosystem conservation.Investments in funds or projects that generate carbon credits for the voluntary carbon market can generate returns for nature as well as climate.Measuring to manage or managing to measure?Investors may increasingly see the links between biodiversity loss and financial risk,bot

233、h specific and systematic,but understanding how investee companies contribute to the problem remains a challenge.The good news is that there are signs of progress.A common understanding of what we mean when we talk about biodiversity impact would be a major step toward impact reduction.If you cant m

234、easure it and compare it with any consistency,its hard to do anything about it.Research InsightsMSCI ESG Research LLCLevon Kameryan FrankfurtPam PalenaZurichMark JwaidehLondonArne KlugFrankfurt8.Investing in nature Theresa BodnerLondon64 Amanda Russo.“Half of Worlds GDP Moderately or Highly Dependen

235、t on Nature,Says New Report.”World Economic Forum,Jan.19,2020.TABLE OF CONTENTSResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 31 65“Recommendations of the Taskforce on Nature-related Financial Disclosu

236、res.”Taskforce on Nature-related Financial Disclosures,2023.66 Francesca Verones,Stefanie Hellweg,Assumpci Antn,et al.2020.“LC-IMPACT:A Regionalized Life Cycle Damage Assessment Method.“Journal of Industrial Ecology 24(6):1201-1219.Without a biodiversity counterpart to carbon-dioxide equivalents(CO2

237、e),biodiversity models and methodologies vary widely,making comparisons and benchmarking difficult.The Taskforce on Nature-related Financial Disclosures framework suggests the risk of global species extinction as an indicator.65 Even thats not straightforward,as there are many ways to approach this

238、calculation.But as an example,the“potentially disappeared fraction of species”(PDF)offers one way to measure it by focusing on ways a company puts pressure on the environment in specific locations.The way that companies use natural resources such as land or water and their contributions to climate c

239、hange all put stress on local ecosystems:The more land,more water and more emissions,the greater the stress.Aggregating impacts across ecosystems and locations can provide insight into a companys total potential impact on biodiversity and nature.66 Exhibit 13:Contribution to global species loss diff

240、ers substantially between sectorsThe chart shows five sectors with the highest potential contribution to global species extinction,with the average for all constituents of the MSCI ACWI Index for reference.We have calculated the PDF,based on company-specific land use,water consumption and GHG emissi

241、ons.For this purpose,we have created estimation models to fill data gaps to create an emissions inventory and focused on the direct operations of a company only.We have translated these location-specific pressures into the“midpoint”impacts such as habitat change,climate change,acidification or ecoto

242、xicity according to the scientific models developed by LC-IMPACT.We have used the MSCI Asset Location Database to identify location-specific company activities.We have aggregated these midpoints into endpoint impacts on terrestrial,freshwater or marine biodiversity.The resulting PDF metric is a frac

243、tion and therefore“unitless.”We have calculated the average PDF per sector and normalized it by revenues(in USD millions).Sectors refer to GICS sectors.GICS is the global industry classification standard jointly developed by MSCI and S&P Global Market Intelligence.Data refers to all constituents of

244、the MSCI ACWI Index as of Nov.2,2023.Source:MSCI ESG Research0.0000.0010.0020.0030.0040.0050.0060.0070.008UtilitiesMaterialsConsumer staplesReal estateMSCI ACWI IndexEnergyPotentially Disappeared Fraction of Species,normalized by USD mil.Land use-relatedWater consumption-relatedGHG emissions-related

245、Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 32 67 To allow for comparison between companies we looked at this metric on a revenue-intensity basis.68 As of Nov.15,2023,296 bonds issued in 2023 were c

246、onsidered eligible under the MSCI Green Bond Methodology.73 of these were intended to fund activities and projects including(but not limited to)the protection and conservation of biodiversity,sustainable forestry and afforestation projects and sustainable agricultural projects.This compares to 24(ou

247、t of a total of 126)green bonds intended for similar projects in 2018.69“Lessons Learnt from Experience with Debt-for-Environment Swaps in Economies in Transition.”Organisation for Economic Co-operation and Development,2007.70“Climate finance:What are debt-for-nature swaps and how can they help coun

248、tries?”World Economic Forum,June 23,2023.71“Debt Sustainability Analysis Low-Income Countries.”IMF,Aug.31,2023.72 Andrew Deutz et al.“Financing Nature:Closing the Global Biodiversity Financing Gap.”Paulson Institute,Nature Conservancy and Cornell Atkinson Center for Sustainability,2020.73“A new wave

249、 of debt swaps for climate or nature,”United Nations Development Programme,2023.74 Patrick Greenfield.“Are debt-for-nature swaps the way forward for conservation?”Guardian,June 21,2023.When we combined land use,water consumption and greenhouse-gas(GHG)emissions from companies direct operations,we fo

250、und that those in the utilities,materials and consumer-staples sectors had the highest potential contribution to global species extinction.67 For example,agricultural-products companies in the consumer-staples sector use large areas of land to produce their goods,while utilities companies predominan

251、tly contribute to species loss via high GHG emissions.Assessing biodiversity risks is a complex task,but a vital first step is agreeing on what to measure.Well be watching whether metrics such as the PDF become the common ground for investors looking to measure how their portfolio companies may driv

252、e biodiversity loss.The reemergence of debt-for-nature swapsThe evident investor interest in supporting nature-based solutions suggests the possibility of growing appetite for investment in nature-oriented assets.In green bonds,a quarter of new issuances in 2023 were linked to nature-based projects

253、such as biodiversity,forestry and sustainable agriculture this number having tripled in the past five years.68 And then there are debt-for-nature swaps.While these have been around since the 1980s,69 they werent previously very accessible for private investors.But growing interest in biodiversity fi

254、nancing and the entry of some new players may be changing that.These swap transactions provide discounts or debt relief on a developing countrys foreign debt in exchange for a commitment to finance land-or marine-conservation measures.70 Given increasing risks of debt distress more than half of low-

255、income countries are considered to be in debt distress or at high risk of it71 and an average annual global biodiversity financing gap estimated,as of June 2020,at over USD 700 billion by 2030,72 we expect the market for debt-for-nature swaps to grow.A number of developing countries most vulnerable

256、to climate change have called for more of these swaps,with some potential deals under consideration.73With a growth potential estimated by one source at more than USD 800 billion,74 innovation in transaction forms and new entrants in the market,we are starting to see more interest from private inves

257、tors looking for conservation-linked investment opportunities.Risk guarantees provided by multilateral development banks(MDBs)on transactions related to debt-for-nature swaps could help.Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end

258、 of this document.MSCI.COM|Page 33 75“AfDB Report Assesses Feasibility of Debt-for-Nature Swaps in Africa.”International Institute for Sustainable Development,Oct.19,2022.76“Gabon Shakes Emerging Debt-for-Nature Swap Market.”C,Aug.31,2023.Several MDBs have already done so or expressed an interest,as

259、 they are under increasing pressure from shareholders to mobilize funding for environmental projects in developing countries.75 The scaling-up of this market is not without challenges and depends,in part,on the success of recent transactions.Structuring can be lengthy and complex,and the environment

260、al benefits might be hard to assess.In addition,changing political and macroeconomic conditions in debtor countries could test investor confidence.The example of Gabon,where power changed hands in a coup just two weeks after the country finalized its first debt-for-nature swap,could serve as a landm

261、ark case in terms of repayment insurance and long-term environmental commitments.76 Ecuador completed the worlds largest debt-for-nature swap to date in 2023,allowing them to buy back debt with a notional value of USD 1.6 billion.77 The deal gives Ecuador access to cheaper financing and gives invest

262、ors access to bonds linked to the conservation of the Galapagos Islands.Exhibit 14:Many countries with high debt-distress risk also face above-average biodiversity risk Universe of countries(n=69)is restricted to those covered by the IMF-World Bank Debt Sustainability Framework,as of August 2023.Bio

263、diversity risk refers to the MSCI Government Biodiversity Risk Exposure score,which is a composite risk metric on a standardized scale of 0 to 10(0 represents lowest risk,and 10 represents highest risk),derived from:(1)share of endangered species;(2)richness and endemism in four terrestrial vertebra

264、te classes and vascular plants;and(3)species represented in each country,species threat status and the diversity of habitat types,as of November 2023.Sources:MSCI ESG Research,IMF,World Bank,UN69%39%31%61%0%20%40%60%80%100%In debt distress or high risk of debt distressModerate or low risk of debt di

265、stressProportion of countries in debt distress categoryAbove-average biodiversity risk exposureBelow-average biodiversity risk exposureResearch InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 34 77“Ecuador Compl

266、etes Worlds Largest Debt-for-Nature Conversion with IDB and DFC Support.”Inter-American Development Bank,May 9,2023.78“Investment trends and outcomes in the global carbon credit market.”MSCI Carbon Markets(formerly Trove Research),Sept.14,2023.79 The primary market for carbon credits defined as the

267、volume of carbon credits retired multiplied by the yearly average price was worth around USD 1.5 billion in 2022.Investments in nature via the voluntary carbon marketInvestments in nature are already a central capital flow in the voluntary carbon market.Projects that generate carbon credits for this

268、 market have come under increasing scrutiny in recent years.These criticisms are often directed at older projects created under outdated standards or more relaxed approaches to verification.As new pledges mount for 2024 and beyond,investors looking for high-quality carbon credits will face the chall

269、enge of differentiating those projects that have integrity from those that do not.As of June 2023,there were over 850 registered(active)nature-based projects in the voluntary carbon market,focusing on the protection and enhancement of natural carbon stocks in forests,farmlands and coastal ecosystems

270、.Another 2,100 projects were already in development,creating a combined project area the equivalent size of Colombia.78 From 2012 to 2022,a total of USD 16 billion was invested in nature-based projects,and we project a further investment of USD 9 billion until 2025 in projects currently in developme

271、nt.The rate of investments has increased steadily,and by 2022 reached two and a half times the total primary market value of USD 1.5 billion,indicative of an industry planning for significant future growth.79 New capital raises and announcements cover an additional USD 20 billion up to 2030.Most of

272、these new commitments have come from asset owners or institutional investors(42%),corporate investors(29%)and fund managers(17%).But investors looking for high-quality carbon credits need to be able to identify the right projects.Projects with high integrity have a positive impact for climate and na

273、ture,support a positive reputation for investors and buyers and produce high-quality carbon credits.We consider four elements of integrity as key for all nature-based projects:additionality,quantification,permanence and“co-benefits”(positive impacts beyond carbon).A project is considered additional

274、if there is evidence that it would not have been viable without the revenue from carbon credits.This ensures that the project supports the trajectory toward net-zero emissions by 2050.Carbon credits must accurately represent one tonne of CO2e removed or reduced;accurate quantification of a projects

275、emissions impact is complex but crucial for reducing the risk of over-crediting.The resulting carbon credits should also have low“permanence risk,”by which we mean that the protection and enhancement of the natural carbon stocks will not easily be reversed.Additionally,nature-based projects can ofte

276、n deliver multiple co-benefits to match investor preferences,such as local community support or biodiversity conservation.As we go into 2024,the importance of investments in nature will only increase.The landscape of opportunities and risks is complex,however,and investors will need to carefully inv

277、estigate which projects are indeed credible in maximizing climate and nature returns.Research InsightsMSCI ESG Research LLC 2023 MSCI Inc.All rights reserved.Please refer to the disclaimer at the end of this document.MSCI.COM|Page 35 Exhibit 15:Nature is becoming a much more investable prospectData

278、has been obtained from three main sources:(1)a survey of market participants conducted during April and May 2023,(2)analysis of more than 400 public announcements of capital raises for low-carbon funds and(3)modeled investment for over 7,000 projects,both registered and in the development pipeline.D

279、ata as of June 30,2023.Source:MSCI Carbon Markets(formerly Trove Research)012345672012201320142015201620172018201920202021202220232024USD bil.Past investmentsProjected investments for ongoing projectsAnnounced raises and new commitments2025 2023 MSCI Inc.All rights reserved.Please refer to the discl

280、aimer at the end of this document.MSCI.COM|Page 36 MSCI.COM|PAGE 38 OF 40 2023 MSCI Inc.All rights reserved.Contact us AMERICAS United States+1 888 588 4567*Canada+1 416 687 6270 Brazil+55 11 4040 7830 Mexico+52 81 1253 4020 EUROPE,MIDDLE EAST&AFRICA South Africa+27 21 673 0103 Germany+49 69 133 859

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282、*Thailand 0018 0015 6207 7181*Japan+81 3 4579 0333*toll-free About MSCI MSCI is a leading provider of critical decision support tools and services for the global investment community.With over 50 years of expertise in research,data and technology,we power better investment decisions by enabling clie

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286、 disclaimer at the end of this document.MSCI.COM|Page 37 12 Data accessed in September 2023,through public regulatory disclosures.13 Deficienciesasdefinedbyrelevantregulatoryauthority.AnalysisoftheU.S.basedonfirminspectionreportsfromthePCAOB.14 BasedonanalysisasofSept.15,2023,of460bankingconstituent

287、softheMSCIACWIInvestableMarketIndex(IMI),withintheregionalbankssub-industry(n=234)andthediversifiedbankssub-industry(n=226),asdefinedbytheGlobalIndustryClassificationStandard(GICS).GICSistheglobalindustryclassificationstandardjointlydevelopedbyMSCIandS&PGlobalMarketIntelligence.Research InsightsMSCI

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