We are in the era of data centers. They are being built with the speed and intensity of factories during the industrial revolution, and with the same sort of capital attraction. But their high emissions, which are under-reported by companies (we will tell you why!), have left both real estate and tech investors with a dilemma: take advantage of the data center boom or have a portfolio with low emissions. We explore this tension in this episode of Sustainability Now.

Helpful Reading: Desire for Data Centers Creates Carbon Dilemma for Property Investors

Host: Mike Disabato, MSCI Sustainability & Climate

Guests: Tom Leahy, MSCI Solutions; Yoon Young Chung, MSCI Sustainability & Climate.

Carbon, selfishly, has dominated the sustainability conversation for some time. But what about the often-overlooked foundation of our everything in our economy: biodiversity. How can you measure that if its basically everything? We show you how in this episode, exploring how every business, from agriculture to technology, depends on the health of ecosystems, and how investors can now quantify those connections through innovative data-driven tools. 

By unpacking the creation of our new Biodiversity Risk Index Screen, the conversation reveals how measuring nature’s complexity can help reduce financial exposure to environmental loss and drive more resilient investment strategies. It’s a deep dive into how markets are beginning to account for the true value of the natural world. 

Host: Mike Disabato, MSCI ESG Research

Guest: Laura Coomber, MSCI ESG Research

On July 4, the United States enacted the One Big Beautiful Bill Act, a sweeping tax-and-spending package containing some 35 provisions affecting the energy sector. Here, we highlight the most significant measures and examine how the legislation could reshape energy-investment decisions for both corporations and investors.

Host: Mike Disabato, MSCI ESG Research

Guest: Chris Cote, MSCI ESG Research

ESG has always been different things to different people. But some of its newest critics suggest that ESG investing is being used to impose liberal ideologies on companies, their investors and their employees. We take a closer look at this backlash in the US, including proposed legislation.

Host: Bentley Kaplan, MSCI ESG Research
Guest: Meggin Eastman, Head of New ESG Research Solutions, MSCI ESG Research

Music: “Curious Play” by PhilLarson [License Code: YFUS65RN4A (Envato Elements)]

A Japanese publishing company allegedly bribed an Olympic committee member to become an official sponsor of the Tokyo Games. As Kadokawa Corp picks up the pieces, we ask what governance factors may have led to this point. And then we look at why doing the “right thing” by sourcing slavery-free cocoa is becoming a regulatory imperative, even for ice cream makers.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Moeko Porter & Aura Toader, MSCI ESG Research

The derailment of a train carrying possibly hazardous materials near East Palestine, Ohio on February 3 has prompted environmental concerns and chemical fears for residents. They have returned home but even as state officials work to reassure them, many remained concerned. The curious thing about all this is Norfolk Southern, the company that operated the train, did not have to label the rail cars carrying the chemicals as hazardous – which would have prompted more safety regulations to be in place. We discuss why the company didn’t have to do this (hint: regulatory thresholds) and what this derailment means for an industry already struggling with labor relations issues.

Host: Mike Disabato; MSCI ESG Research

Guests: Bentley Kaplan; MSCI ESG Research

There have been over 70,000 people laid off from their jobs in the tech industry – an amount unseen since the dot.com bubble burst. Layoffs are an inevitable part of a capitalist system and, so, come with the territory for companies. But what is not inevitable is the reaction the surviving employees have to seeing their friends and colleagues let go: will they be angry at the company they still work for? Motivated? Fearful? ESG tries to assess the long-term effects that layoffs have on company performance. In this episode, we discuss how ESG does this and why it is important.

Host: Mike Disabato; MSCI ESG Research
Guests: Liz Houston; MSCI ESG Research

Research discussed outside of MSCI ESG Research: https://hbr.org/2018/05/layoffs-that-dont-break-your-company

Gautam Adani, whose empire the Adani Group, was rising along with India’s economy. Then a little known US short seller perhaps aptly named Hindenburg released a report that accused the Group of some pretty damaging business practices. Adani said the report was bogus, the market reached anyway, and now one of the most important companies in India is fighting investor perception. But how did this happen? Weeks ago, Adani Group seemed like a stable growth story. Yet, when it comes to Governance, ESG saw some risky signs in Adani Group and companies like it years ago. We explore what those vulnerabilities were, and why they might have left Adani Group susceptible to attack by a small, previously unknown short seller.

Host: Mike Disabato, MSCI ESG Research
Guest: Zanele Mtshali, MSCI ESG Research

The US central bank wants climate data from the country’s “big six” banks. It’s a telling shift and one that is echoed across several jurisdictions. We look at what this means for both banks and their investors. Then we jump into the mosh pit of ticket sales to figure out why Live Nation and Ticketmaster keep landing in the headlines.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Carrie Wang, Sita Subramanian & Helen Marlow, MSCI ESG Research

What if there is a water utility that saves a city millions of gallons worth of water a day, but also increases its carbon emissions by a large amount? What if a company makes a product that saves people, but it allegedly uses forced labor to do so? Do you avoid these companies and products? Are you a follower of the Ethics of Ambiguity in that the means of production is the same as the ends? In this episode, we discuss the conflicts that arise for investors, impact investors especially, due to the inherent conflicts that are present in the operations of some companies.

Host: Mike Disabato; MSCI ESG Research

Guests: Mathew Lee, Namita Nair, and Rumi Mahmood; MSCI ESG Research

After energy prices surged, oil and gas companies reported record profits in 2022. We discuss where this profit bonanza will end up and whether any of it will help the energy industry transition away from fossil fuels.

Host: Mike Disabato, MSCI ESG Research

Guests: Antonios Panagiotopoulos, MSCI ESG Research

As drought is followed by flood, there is renewed talk of how gene-editing techniques can be used to shield our agricultural system against the ravages of climate change. Recently, seed companies have turned to the targeted genome modification of plants using methods like Clustered Regularly Interspaced Short Palindromic Repeats or CRISPR for short. We discuss what companies are involved in using CRISPR to make new gene-edited crops and what governments might be softening to their use. Then, we discussed the ruling by the EU that Meta’s ad practices were illegal under EU law.

Host: Mike Disabato, MSCI ESG Research

Guests: Cole Martin and Yoon Young Chung, MSCI ESG Research

As the biodiversity focused COP15 continues in Montreal, we discuss how investors and companies have begun to understand the risks caused by biodiversity loss – maybe the most important long-term environmental problem we face. But If biodiversity is so important, why has climate change been the favorite child in the ESG space? And why has it taken a bit longer for the investment community to examine biodiversity loss with the same rigor as climate change? We answer that and more!

Host: Mike Disabato, MSCI ESG Research

Guests: Arne Klug, MSCI ESG Research

Junk food is at the center of the political conversation in America and globally, with discussions about ultra-processed and artificial foods, and the changes we need to make to food, and how hungry we are but none of the food is "good." It is a thing! But what does it mean for food companies? And what does it mean for our social pillar where we look at opportunities in nutrition and health - which assess which companies are likely to meet market demand for products with improved nutritional or health profiles. Listen to find out!

Host: Mike Disabato, MSCI ESG Research

Guest: Cole Martin, MSCI ESG Research

An audio exploration of our latest annual trend report on the ESG trends that may shape the environment for investors and companies in the year ahead. We discuss new digital policies in the EU, EU and China maybe embracing GMOs, lab grown commodities like pineapple leather(!), new fund regulations, and more!

Host: Mike Disabato, MSCI ESG Research

Guests: The MSCI ESG Research Team

As COP27 in Sharm El-Sheikh winds down, we talk to Oliver Marchand about his impressions from the conference. While staving off the worst effects of climate change is definitely getting harder, we also find some reasons for hope. Then we review an updated rule that is looking to clamp down on methane emissions from oil and gas wells in the US. The document is 504 pages long, but we promise a briefer precis.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Oliver Marchand & Chris Cote, MSCI ESG Research

Glencore admitted to bribery in five African countries between 2011 and 2016. A £276 million payment ordered by a UK court highlights the financial risks of bribery. We take a look at the company’s broader ESG risks and how its operations create positive and negative externalities. And then, with COP27 in full swing, we walk through how climate change could affect the insurance industry.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Sam Block & Cody Dong, MSCI ESG Research

One well-worn critique of ESG investing is that some companies with a high rating aren’t actually making the world a better place. We break down this conflation of ESG impact with financial risk by looking at the different sides of J&J and Nestle.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Julia Giguere-Morello & Cole Martin, MSCI ESG Research

There’s much more to Tesla than electric vehicles. We tackle some apparent contradictions by looking at the company through four lenses: financial risk, environmental and social impact, climate risk and climate impact. And then, the rights of local communities prove to be a stumbling block for another Australian extractives company.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Yu Ishihara & Gabriela De La Serna, MSCI ESG Research

What is ESG for? Why aren’t ESG ratings correlated between ratings providers? Is greenwashing a problem in the industry? Is ESG a scam? This week we define, in our words, what ESG investing actually is, and address some of the criticisms against the industry.

Host: Mike Disabato, MSCI ESG Research
Guest: Meggin Thwing Eastman, MSCI ESG Research

What does a board do if an executive bites someone on the nose? What about if they use corporate resources to stalk and intimate a blogger? What if an allegation against an executive is more serious and criminal chargers are brought against them? We break down what a company’s board of directors can do in these dastardly situations of executive misconduct, and what sort of structures might be useful for the board to reach quickly and effectively to any problems. Then, in the aftermath of hurricane Ian, we discuss the risks companies face due to from more intense and frequent hurricanes.

Host: Mike Disabato, MSCI ESG Research
Guest: Harlan Tufford and Katie Towey, MSCI ESG Research 

Farming fish and shrimp might be a much-needed solution to feed a growing population. But it’s not without risks – both regulators and investors will be rooting for more sustainable practices. And as the SEC considers mandatory climate reporting, we take a look at its recent letter to a manufacturer of adventure vehicles.

Host: Bentley Kaplan, MSCI ESG Research

Guests: Mike Disabato and Helen Marlow, MSCI ESG Research

It is climate week in New York city! For this episode we bring you clips from our live panel called Infrastructure finance for the energy transition and climate adaptation. The show is curated by host, Mike Disabato, but the content is all from the live show. The panel was on how might the new U.S. climate law supercharge America’s energy transition; and what mechanism can help to close the gap globally between where capital goes and where countries need it?

Panelists:

• Elchin Mammadov, Vice President, ESG & Climate Industry Research, MSCI
• Bruce Schlein, Director, Head of ESG, OMERS
• Kim Carnahan, Senior Director for Net Zero Fuels, ENGIE Impact
• Valerie Hannah, Managing Director, Renewable Power & Transition, Brookfield Asset Management
• Moderator: Sue Reid, Climate Finance Advisor, Global Optimism

A labor dispute in the freight rail industry that brought the US to the brink of a potential economic catastrophe was averted this week, as unions and rail companies came to an agreement. One of the main reasons for the labor dispute was a newish system the rail industry was using that they claim maintained service while using fewer resources. We discussed why this new system is a paradigm for the current troubles many industries are having due to labor disputes, and what to watch when companies and labor have strife. Then, we discuss how institutional asset owners, some of the largest, most influential participants in the financial market, can take their portfolios toward net zero (this has more to do with you than you think).

The reading list for this episode is the Implementing Net-Zero: A Guide for Asset Owners found on MSCI.com: https://www.msci.com/www/research-report/implementing-net-zero-a-guide/03298099988

Host: Mike Disabato, MSCI ESG Research

Guests: Bentley Kaplan and Sylvain Vanston, MSCI ESG Research

The energy transition isn’t a straight line. Investors are increasingly look to understand where and how emissions create portfolio risk. In this episode, we explore MSCI’s new energy transition framework and take a closer look at materiality-weighted emissions, a new metric that draws a bolder line to company performance. 

Host: Bentley Kaplan, MSCI ESG Research

Guests: Chris Cote & Guido Giese, MSCI ESG Research

Not many industries are as important as the automobile industry is to developed economies (some say it is the most important). At the moment, it is going through a deep structural change as it shifts toward electric vehicles and the industry works to lower its emissions. In this episode, we discuss what the biggest changes the auto industry has made so far in 2022 and where it may to go.

Host: Mike Disabato, MSCI ESG Research
Guest: Yu Ishihara, MSCI ESG Research

Water levels in key rivers are at historic lows which is creating havoc for our global economies. We use our climate risk models to assess which companies are most at risk and understand what the continued drought means for the smooth running of our economy and our society. Then, we assess the ESG components of the recently passed Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America act.

Host: Mike Disabato, MSCI ESG Research

Guests: Gillian Mollod & Siyu Liu, MSCI ESG Research

Mining for Lithium usually calls for large quantities of water or fossil fuel. But an intriguing venture in the Rhine Valley is looking to flip that idea on its head. And for the UK, an ambitious green building standard will see new homes a lot leaner, but a lot more comfortable too. 

Host: Bentley Kaplan, MSCI ESG Research
Guests: Kuldeep Yadav & Mark Bessoudo, MSCI ESG Research

A massive provision called the Inflation Reduction Act was passed in the US Senate on August 7 and is making its way to US President Biden. If signed into law, it hails as one of the largest climates, health care and tax bills ever passed in the US. We discussed some of the most impactful provisions in the climate and energy security provision of act through an ESG lens. We will discuss the changes to the tax code and healthcare in later episodes. 

Host: Mike Disabato, MSCI ESG Research
Guest: Mathew Lee, MSCI ESG Research

The S of ESG has become more useful in understanding company performance in down times. When things are bad, companies that take care of their workers, for example, often perform better than their counterparts. We discuss why this might be by looking at growing job vacancies in some parts of the US economy. Then, we discuss what could happen to the food system if the rare “triple-dip” La Nina, an atmospheric and oceanic phenomenon, happens this winter.

Host: Mike Disabato; MSCI ESG Research
Guests: Liz Houston, Umar Ashfaq, Cole Martin; MSCI ESG Research 

The G of ESG has always been the more accepted of the three in more traditional investment circles. Ric Marshall of MSCI ESG Research is one of the reasons for that. He is one of the pioneers of corporate governance analysis and is retiring this month. Ric is our special guest this episode. He takes us through the origins of his corporate governance research (surprise! it involves a co-op) and where he thinks corporate governance analysis will go next.

Host: Mike Disabato, MSCI ESG Research
Guest: Ric Marshall, MSCI ESG Research 

By May 2022, a giddy 46% of MSCI ACWI constituents had controlling owners. We look at what this concentrated ownership means for minority shareholders. Then we look back at Shinzo Abe’s legacy as a reformer of Japan’s corporate governance practices. 

Host: Bentley Kaplan; MSCI ESG Research
Guests: Ric Marshall, Jonathan Ponder, and Moeko Porter; MSCI ESG Research

The US Customs and Border Protection agency released operational guidance for importing companies on how to comply with the Uyghur Forced Labor Prevention Act (UFLPA), which was signed into law on December 23, 2021. The big ask for companies was for more supply chain transparency. We discussed what UFLPA means for the world’s economy and why supply chain transparency is still so difficult. Then we discussed the most recent ruling US Supreme Court ruling that limited the Environmental Protection Agency's ability to regulate greenhouse gas emissions from power plants.

Host: Mike Disabato; MSCI ESG Research
Guests: Miranda Carr, Liz Houston, and Mathew Lee; MSCI ESG Research

As biodiversity loss accelerates, companies and investors are under increasing pressure to act. But turning data into decisions is trickier than it seems. And after a bumpy ride for the EV start-up, ELMS files for bankruptcy and rings a cautionary governance bell. 

Host: Bentley Kaplan, MSCI ESG Research
Guests: Gillian Mollod and Yu Ishihara, MSCI ESG Research

Every fund manager with an ESG fund seems to be under routine but detailed examination by financial regulators into their use of “ESG” in said fund label or how they incorporate ESG in their investment process. We explore what this means for the industry and why it matters. Then, we discuss the current state of the wind energy industry, exploring the companies that are leading the chart for a cleaner energy world. 

Host: Mike Disabato, MSCI ESG Research
Guests: Mathew Lee and Nelson Lee, MSCI ESG Research

How is it going with the carbon credit markets? Are they pricing credits accurately? Is the vitally important Carbon Offsetting and Reduction Scheme for International Aviation also known as CORSIA that relies on functioning carbon credit markets working out? Listen to this episode of Sustainability Now to find out!

Host: Mike Disabato, MSCI ESG Research

Guest: Utkarsh Akhouri and Nicholas Baldwin, MSCI Carbon Markets 

REPLAY! This week the voluntary carbon markets integrity initiative or VCMI launched a consultation to assess companies use of carbon offset credits and how they impact progress towards their climate targets. So we decided to replay our carbon markets 101 episode. It is a discussion around companies that use carbon markets and carbon offsets to meet their plans to reduce their greenhouse gas emissions. Carbon markets, in the broadest sense, turn the power to pollute into a credit that can be bought and sold. They are marketed as one of the major pillars in combating climate change and are an important tool for investors to understand.

Host: Mike Disabato, MSCI ESG Research
Guest: Maximiliane Heidenblut, MSCI ESG Research

AGL Energy, Australia’s largest electricity generator and polluter, abandoned plans to spin-off its coal assets after tech billionaire Mike Cannon-Brookes bought shares to help block the move. It was a continuation of a trend we are seeing: the offloading or spinning off of pollutive assets away from the parent company. We discuss AGL’s attempt, this offloading trend, and where the company goes from here.

Related content:

ESG Trends: Private-Company Emissions Under Public Scrutiny

MSCI’s Net-Zero Hub

Host: Mike Disabato; MSCI ESG Research
Guests: Elchin Mammadov, Harlon Tufford; MSCI ESG Research

Abbott Laboratories is having to answer difficult questions after the F.D.A found its Michigan plant to be “egregiously unsanitary.” The plant closed after four infants became ill and two died after consuming Abbott’s baby formula that was made at the plant leading to a national formula shortage. We discussed what happened and why product quality and safety is such a key issue in ESG analysis. Then, we discussed the Australia election results which were heavily influenced by climate change concerns.

Host: Mike Disabato; MSCI ESG Research
Guests: Namita Nair, Elchin Mammadov, Antonios Panagiotopoulos; MSCI ESG Research

After a stellar 2021 for mining company Sibanye-Stillwater, its CEO is banking a hefty pay package. But as the company squares off against 25,000 striking mineworkers, we pick apart the arguments for and against bumper executive paydays.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Zanele Mtshali and Samuel Block; MSCI ESG Research

Carl Icahn, a billionaire investor and storied corporate raider, has mounted a proxy fight at McDonald’s Corp. to change how it sources it’s pork. At the moment, McDonald’s, and all other fast-food companies, source pork from farmers that use what are called gestation crates. These crates have caught the ire of Icahn and the US Humane Society for some time, and they decided to mount a public proxy fight to change the practice. We discuss what this means for McDonald’s and the future of pork producers. Then, we look at the first enforcement action ever made by the relatively new SEC Climate and ESG Task force against Vale over its misleading ESG disclosures on the safety of its tailings dams.

Host: Mike Disabato, MSCI ESG Research
Guests: Jonathan Ponder and Samuel Block; MSCI ESG Research

After a draft opinion leaked from the U.S. Supreme Court showed the possible reversal of the landmark abortion law called Roe v. Wade, a new spotlight has been put on companies that manufacture abortifacients (aka abortion pills). We give you a quick look into what those pills are used for (not just abortions) and the companies that manufacturer them. Then we explore what sovereign bonds can tell us about how climate change is going to affect governments. 

Host: Mike Disabato; MSCI ESG Research

Guests: Bhaveer Shah and Namita Nair; MSCI ESG Research

For short sellers, ESG data offers new strategic considerations. But when it comes to reporting the ESG-related impacts associated with short positions, you’d be forgiven for scratching your head. We take a look at the differences between financial and double materiality and what key investors had to say about this brave, new world.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Rumi Mahmood and Miranda Carr; MSCI ESG Research

A spate of auditor resignations for real estate developers in China have prompted whispers of economic contagion. The real estate market in China is really important and if it were to collapse, then the world might go with it. We discuss what ESG has to do with the looming, potential crisis, and how the problems we are already seeing in the market could be fixed with better company governance processes.

Host: Mike Disabato, MSCI ESG Research
Guests: Yan Zhou, Sophia Chang, and Miranda Carr; MSCI ESG Research

This week we saw a landmark win for labor as Amazon workers on Staten Island voted to unionize. The decision and others like it at Starbucks and REI gives us a chance to explore unions from an ESG perspective. Then, we touch on some of the important findings in the recently published IPPC Climate Change 2022: Mitigation of Climate Change report.

IPCC Report: https://www.ipcc.ch/report/ar6/wg3/

Host: Mike Disabato, MSCI ESG Research
Guests: Liz Houston and Chris Cote, MSCI ESG Research
Researcher: Gabriela De La Serna

As Russia invaded Ukraine, endless briefing documents were thrust in front of company directors. Navigating supply chain disruptions, sanctions and a humanitarian crisis is not supposed to be easy. And as the war continues, investors will find that not all boards are equal. And war aside, Boeing’s board will be navigating a crisis of its own, following the fatal crash of a 737-800 in southern China. 

Host: Bentley Kaplan, MSCI ESG Research
Guests: Harlan Tufford & Umar Ashfaq, MSCI ESG Research

Could Swiss pharmaceutical company Roche’s late-stage antibiotic trials signal new hope against antibiotic‐resistant pathogens? On this special REPLAY episode (originally aired August 2024), we take a deep dive into the state of antimicrobial resistance, from hospital wards to farm fields. As these microscopic threats drive up healthcare costs, jeopardize food security, and reshape insurance risk worldwide, understanding the crisis has never been more critical. But while the need to act is clear, the solutions remain complex. In this episode, we examine whether there’s a compelling investment case for fighting back, and what that could mean for the future of global health.

Host: Bentley Kaplan

Guest: Namita Nair

Coal is a complex topic: it's the main factor driving up global energy-related carbon emissions, yet it is a cheap and stable fuel source millions rely on for their energy and livelihoods. So, why does it have such staying power? And why has 2022 seen so many planned coal expansion projects? We discuss such things in our first story. Then, we give you the MSCI ESG Research hot take on the new proposed requirement by the SEC that companies will need to reveal detailed information about their greenhouse gas emissions. This is a major development in how the SEC addressed climate disclosure in the financial markets.

Episode Reading List: 

• Net Zero Tracker: https://www.msci.com/research-and-insights/net-zero-tracker?utm_medium=social&utm_term=ESG%2CNet-Zero&utm_content=100002979498471
• Global Coal Exit List: https://www.coalexit.org/

Host: Mike Disabato, MSCI ESG Research
Guests: Sylvain Vanston and Linda-Eling Lee, MSCI ESG Research

ESG MORAL CONUNDRUM: Can defense companies (which are also the weapons companies) make a positive contribution to ‘social sustainability’ and so should be consider social impact companies? I may not have a good answer but I go through the data so you can decide. Then, we discuss a Chinese ride sharing company that left Russia right before Putin invaded Ukraine because of market difficulties (i.e. not enough profit) and then decided to go back AFTER the Ukraine invasion. We discuss why.

Host: Mike Disabato; MCSI ESG Research
Guest: Bentley Kaplan; MSCI ESG Research

We begin this episode with an update on the invasion of Ukraine by Russia. Western companies have begun an exodus from Russia as sanctions and atrocities mount.  Yet, some are deciding to stay. The decision behind why is ultimately one that can be explained by examining their board of directors. We do this, with a focus on one of company specifically: Danone. Then, we discuss the growing problem of child labor in cocoa harvesting. And the attempt by Nestlé to use money and enhanced mapping technology to combat its prevalence. It sounds bleak, but it is a great story about how technology is allowing for better transparency in our world's supply chain. 

Host: Mike Disabato, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research