Carbon Delta, an environmental FinTech and data analytics platform, has been acquired by MSCI Barra Sàrl.
Founded in 2015, Carbon Delta offers forward-risk measure for analysing climate-related risks and opportunities to help investors make decisions on investments.
In working together, the companies will build a climate risk assessment and reporting offering for the institutional market. Investors will be able to leverage the solution to better understand the impact of climate change on their portfolios, and how to comply with climate risk disclosure requirements.
This integration will extend MSCI’s climate risk capabilities with modelling technology which can conduct scenario analysis and forward-looking assessment of transition and physical risk. This service will be offered as part of the MSCI Climate Value-at-Risk service, a climate risk metric which calculates the impact of climate change on a company’s market value which helps quantify risks for investors.
Following the close of the deal, Carbon Delta’s Zurich office will serve as the MSCI Climate Risk Centre. This office will focus on the development of climate change risk analytics and tools.
MSCI head of ESG Remy Briand said, “We believe climate change will become one of the most important investment factors over the long term. Institutional investors should be able to analyse the exposure of their portfolios to climate risk while also being able to report on their climate strategy.
“We are pleased to come together with Carbon Delta to provide our clients with state-of-the-art climate risk analysis capabilities that can help shape investment management practices of the future.”
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