MSCI Barra (Suisse) Sàrl is acquiring Carbon Delta AG. The Zurich-based data analytics firm Carbon Delta is a leading provider worldwide of scenario-based methods for assessing climate risk. Its acquisition is being handled by the Geneva subsidiary of MSCI, a U.S. financial services provider and risk analyst. As a result, MSCI is gaining expertise for the analysis of climate change scenarios.
Carbon Delta was founded in 2015 and is a global leader in the analysis of climate change risk. According to a press release, the two companies want to provide global investors with solutions to help them better understand the impact of climate change on their investment portfolios. MSCI and Carbon Delta are planning to create an extensive climate risk assessment and reporting offering for the institutional market. Their tools and services will support listed companies worldwide in climate scenario analysis and the forward-looking assessment of transition and physical risks.
“We believe climate change will become one of the most important investment factors over the long term. Institutional investors should be able to analyze the exposure of their portfolios to climate risk while also being able to report on their climate strategy,” said Remy Briand, Head of Environmental, Social and Governance at MSCI, in the press release.
The Zurich office will act as MSCI’s Climate Risk Center, with its focal point being on the development of climate change risk analytics and tools. To this end, MSCI will be building on the relationships with leading academic and research institutions already forged by Carbon Delta.
“We are very excited to join forces with MSCI to mature and grow our products,” said Oliver Marchand, CEO of Carbon Delta. “Combining Carbon Delta’s scenario analysis and MSCI’s products is what institutional investors have been asking for.”