MSCI enhances science-based targets in bid to reach net-zero by 2040
American finance firm MSCI has unveiled updated science-based targets aligned with the 1.5C target, pledging to reduce Scope 1 and 2 emissions by 80% by 2030 and deliver a 90% reduction across the value by 2040 in order to become a net-zero business.
MSCI, which provides an array of tools, services and indices for the investment community, has updated its short and medium-term decarbonisation targets in a bid to reach net-zero emissions by 2040.
The company has moved the timeline for reducing emissions from 2035 to 2030, and will now aim to reduce Scope 1 and 2 emissions, in absolute terms, by 80%. Scope 3 emissions will be reduced by 50% by 2030. In comparison, the company’s old targets were at 50% and 20% respectively.
MSCI has confirmed that the targets have been approved by the Science Based Targets initiative (SBTi) and are in alignment with the 1.5C trajectory. All percentage reductions referenced are from a 2019 base year.
“Preventing the worst impacts of a warming climate demands urgent action and will require concerted action across all industries. I am pleased to announce our new commitments on the heels of the tremendous momentum that emerged from COP27,” MSCI’s chief executive Henry Fernandez said.
“As a public company that provides net-zero investment tools and has called on capital markets participants to support decarbonization, we strive to be transparent about our own emissions and impact. MSCI’s enhanced commitments will help us drive accountability and stay aligned with a sustainable climate pathway.”
In order to meet the new science-based targets MSCI has unveiled a new set of milestones, to be reached by 2025. This includes reaching 100% renewable electricity procurement, reducing Scope 1 and 2 emissions by 60% and increasing the number of suppliers that have set science-based targets from 36% today to 60%.
In April 2021, the firm announced its intention to reach net-zero emissions before 2040, pledging to revamp its current decarbonisation goals and align with the recommendations of the Taskforce on Climate-Related Financial Disclosures (TCFD).
MSCI will focus on decarbonising electricity consumption and business travel while investing in green building technologies for its offices. The company will also strive to decarbonise its value chain and will engage with major suppliers to encourage them to set net-zero goals.
Revised targets will be published at an as-yet-unspecified date, with interim targets set to be developed that are in alignment with TCFD recommendations.
© Faversham House Ltd 2023 edie news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.