ESG now (MSCI ESG Research LLC)

The EU has made a last minute change to its green bible, the EU Taxonomy: It proposed including natural gas as a sustainable transition fuel. The move would have notable effects on investors and companies. And would give natural gas a coveted green label by the EU. Then, a self-commissioned report by Rio Tinto revealed sexual assaults and culture of ‘systemic’ bullying at the Australian mining giant.

Host: Mike Disabato

Guests: Hanna Ogilvy, Elchin Mammadov, and Sam Block; MSCI ESG Research

As banks feel the heat over financed emissions, we look at current disclosures and the challenge of putting out credible numbers. Then we sift through recent and colorful electric vehicle start-ups that hit public markets with some SPAC-merger magic.

Host: Bentley Kaplan

Guests: Nigel Fletcher, Carrie Wang, Yu Ishihara; MSCI ESG Research

Tensions continue to rise between Russia and Ukraine. The crisis is complicated because of the dependence of the West on Russian natural gas. We discuss how that dependence plays out and what could happen to companies’ carbon targets if Russia cuts off its supply of natural gas. Then, we discuss the proliferation of online gambling in the US.

Host: Mike Disabato
Guests: Elchin Mammadov and SK Kim; MSCI ESG Research

As the Russian escalation in Ukraine continues, Germany has decided to suspend certification of the Nord Stream 2 Baltic Sea pipeline that would have doubled Russia’s natural gas export capacity to Germany. We discussed what this move means for the energy mix of Western Europe and what companies are exposed to the pipeline’s construction. Then, we discussed the equitable distribution of the COVID-19 vaccine: which company has distributed the most vaccines to lower income countries and which company has distributed the least, and why it matters.

Host Mike Disabato

Guests: Elchin Mammadov and Namita Nair; MSCI ESG Research

As a country and its people reel, we look at some of the early implications of the conflict in Ukraine. We’ll take you through Russia’s shifting ESG risk profile, the moral dilemma facing social media platforms and the implications for climate change.

Host: Bentley Kaplan
Guests: Bhaveer Shah, Andrew Young & Antonios Panagiotopoulos; 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

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

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

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

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

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

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

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

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 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

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

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

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

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

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

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

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 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 

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 

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

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

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

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

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

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

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

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 

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

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

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

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

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

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 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

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

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

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

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

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

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

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

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

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)]

South Korea’s government has proposed a change to laws governing working hours. We look at why the proposal has not been well received by key stakeholders and what it could mean for how companies manage their workforces in future. And then we look at how shareholders’ approach to climate engagement might be changing, but also staying the same.

Host: Bentley Kaplan, MSCI ESG Research
Guests: SK Kim & Florian Sommer, MSCI ESG Research

From being a go-to bank for US tech start-ups, SVB’s collapse was swift and chaotic. As investors and regulators pick through the wreckage, we look at how much of this story was actually about ESG. And we draw a bold line between financially relevant ESG risks and financially relevant financial risks. 

Host: Bentley Kaplan, MSCI ESG Research
Guest: Harlan Tufford, MSCI ESG Research

This week we discuss the new anti-obesity drugs that many have claimed could spell an end to the world’s obesity epidemic. But ESG and diseases are not so straight forward. For example, we include diabetes medication but not obesity medication in our access to healthcare key issue. Why is that? We explore the topic in this week’s episode.

Host: Mike Disabato, MSCI ESG Research

Guest: Namita Nair, MSCI ESG Research

The Colorado river is shrinking and the tens of millions of Americans that rely on the water source are having to deal with the possibility of imposed water cuts. The urban sprawls that have peppered the desert are also in competition with the industries that operate in the area and use the water from the Colorado river: agriculture, semiconductors, and energy. In this week’s episode we discuss what happens when companies no longer have access to the water they need to operate. 

Host: Mike Disabato, MSCI ESG Research

Guests: Cole Martin, Siping Guo, Mathew Lee; MSCI ESG Research

This week we discuss why air pollution is a topic that investors may want to take greater interest in. It is not only a macro-economic burden, but also affects every company operating in polluted areas.

Host: Mike Disabato, MSCI ESG Research 
Guests: Simon Albrecht and Jurgita Balaisyte, MSCI ESG Research

There is a considerate environmental cost to e-cigarettes. The critical metals that make up their batteries are more likely to be found in landfills than recycling facilities. Not only does this pose a problem for the environment but regulators are starting to take notice. In this episode, we discuss the environmental problem of e-cigarettes and what may be done to address it. Then, we discuss the ambitious new regulation on tail pipe emissions by the US Environmental Protection Agency that might be the most ambitious air quality regulation ever.

Host: Mike Disabato, MSCI ESG Research 

Guests: Aura Toader and Yu Ishihara, MSCI ESG Research

Special thanks to Margarita Grabert and Gabriela De La Serna for their help with this episode.

To meet net-zero ambitions, it looks like we’re going to need a whole lot of solar energy, and fast. And a complex value chain is bracing for soaring demand. In this episode, we work through the risks and opportunities for investors and companies (and not only the ones you’re expecting).

Host: Bentley Kaplan, MSCI ESG Research
Guest: Mathew Lee, MSCI ESG Research

NGOs have filed a lawsuit against BNP Paribas, arguing that bank has failed in its “Duty of Care”, under French law. As climate-related litigation escalates, we take a closer look at BNP’s financed emissions. And then, lawmakers have mandated the inclusion of female executives on the management boards of large German companies. We look at how things have shifted at this early stage and what that means for governance.


Host: Bentley Kaplan, MSCI ESG Research
Guests: Guilherme de Melo Silva & Florian Sommer, MSCI ESG Research

Are you aware of how much progress we are making on addressing climate change? There are all-these-pledges and all-these-plans made by companies, but have those plans been useful? Are they actually making progress on cutting emissions or are they just saying, “yeah we care about it, and we will do….something.” And what are those “somethings?” Are they far away technologies that can suck the bad stuff out of our atmosphere like a sort of techno-savior? Or something else? We answer those questions on this episode of ESG now.

Host: Mike Disabato, MSCI ESG Research 

Guests: Sylvain Vanston and Chris Cote, MSCI ESG Research

There are a number of looming carbon emission regulations set to hit the commercial real estate sector in the coming years. These regulations would require building managers to retrofit their asset’s with emissions reducing technology else face hundreds of millions of dollars’ worth of fines. We discuss what these regulations mean for the long-term sustainability of the commercial real-estate sector, and the financial importance of making a building more energy efficient.

Host: Mike Disabato, MSCI ESG Research 

Guests: Mark Bessoudo, MSCI ESG Research

Under pressure from wildfires and inflation, State Farm has stopped issuing new homeowner policies in California. We get to the bottom of how physical climate hazards may change the future shape of the insurance industry. And then we ask why the Net-Zero Insurance Alliance is a little different from the other alliances that fall under the GFANZ. 

Host: Bentley Kaplan, MSCI ESG Research
Guests: Cody Dong & Sylvain Vanston, MSCI ESG Research

Semiconductors are used in ev-er-y-thing. But semiconductor manufacturers have a high greenhouse gas (GHG) emissions footprint. Since they are so ubiquitous in our economy, will they get a free pass and not be pressured to lower their GHG emissions? Or will the expanding industry be pushed to lower their emissions a la the oil and gas industry? These questions and more are answered on this week's episode of ESG now.

Host: Mike Disabato, MSCI ESG Research
Guest: Siyu Liu, MSCI ESG Research

Part of proxy season is over, so we take a look at the landscape of shareholder proposals. And it is well known for to those who are closely watching shareholder proposals that ESG proposals have pretty much plummeted this year vs. last year and previous years – but why is that? Are ESG shareholder proposals losing steam and momentum? Or is that maybe too simple of a reading of the data? We also discuss the new crop of proposals coming out from a set of contrarian shareholder groups that buck the trend of proposals to date.

Host: Mike Disabato, MSCI ESG Research
Guest: Harlan Tufford, MSCI ESG Research

The EU is ironing out the final details of its Corporate Sustainability Due Diligence Directive. We look at what it could mean for how companies identify, mitigate and report on their impacts on human rights. It’s a pioneering step that not only stands to affect European companies, but global ones that earn revenue in the EU market.

Host: Bentley Kaplan, MSCI ESG Research
Guests: Aura Toader & Leslie Swynghedauw, MSCI ESG Research

Our planet’s hottest days on record were recorded July 3 to July 5. Global average temperatures rose to a new high of 62.9 Fahrenheit. And even as the days get less sweltering, we all seem to be collectively looking around wondering what might happen next month. It is a collective fear that doesn’t seem to have rattled the market. Even so, today we discuss what the ever increasing temperatures mean for the companies you invest in and what cities might be most affected in the coming decades if the world continues to warm.

Host: Mike Disabato, MSCI ESG Research 

Guests: Mathew Lee, MSCI ESG Research

User privacy on internet platforms is sliding higher up the “to do” list of the EU’s regulators. Five years after a trailblazing law was passed – the General Data Protection Regulation (GDPR) – we’re starting to see its enforcement moving up a notch. For big tech companies that rely on personalized advertising, like Meta and Alphabet, their future in the EU is starting to look a little more complicated. 

Host: Bentley Kaplan, MSCI ESG Research
Guests: Yoon Young Chung & Andrew Young, MSCI ESG Research
Producer: Gabriela de la Serna, MSCI ESG Research

Airlines have been offering customers with the option to purchase carbon credits or to support sustainable aviation fuel as they are buying a plane ticket. The airlines claim in doing so, the customer can lower the emissions of their trip and thereby lessen its impact on climate change. Sounds great! But, is that true? Are your emissions really lowered by those carbon credits? And can airlines use the promise of abated emissions, or better yet, sustainable fuels, to claim they are already carbon neutral? On this episode, we discuss aviation’s ambitious climate plans, why some of the advertising around these plans has gotten the industry in to legal trouble, and what the future holds for airlines and passengers that are worried about their carbon emissions.

Host: Bentley Kaplan, MSCI ESG Research 

Guests: Mike Disabato, MSCI ESG Research

Commodities like palm oil, beef and cocoa are intertwined with deforestation. The EU wants to change this. We talk about the bloc’s latest law and how it’s going to ask food companies to take supply chain due diligence and traceability to a whole new level.  

Host: Bentley Kaplan, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research

[Cole Martin would like to thank Marc Lieberman for his contributions to this episode]

Artificial intelligence is rolling out in a big way across different industries and sectors. With much to lose and much to gain from this new trend, investors will be looking to boards that ask good questions and get good answers – even if that means letting AI into the boardroom. 

Host: Bentley Kaplan, MSCI ESG Research
Guests: Tanya Matanda & Harlan Tufford, MSCI ESG Research
Producer: SK Kim, MSCI ESG Research

The EU has set up a number of regulations to define what is and is not environmentally sustainable. Part of those regulations touch investment funds as most assets under management in Europe (~EUR 7 trillion out of EUR 12 trillion) are invested in ESG funds or strategies with some sustainability-related focus. Is this episode we look at what the effect of these defining regulations have been on the fund investment landscape in Europe, and whether the EU has been successful in its intent.

Host: Mike Disabato, MSCI ESG Research

Guest: Rumi Mahmood, MSCI ESG Research

We have likely entered in to an El Nino season as of June 2023. El Nino forms and then eventually dissipates as trade winds that blow to the south of the equator shift and impact the flow of the ocean below them. This means the world gets hotter, even hotter than the record heat we have already seen (which is tough to hear). In this episode, we discuss what that sort of warming will likely do to global crop yields and the debt levels of the world’s economies.

Host: Mike Disabato, MSCI ESG Research

Guest: Alex Schober, MSCI ESG Research

The demands made by the United Auto Workers (UAW) to the big three auto companies in the US are varied and touch on every part of ESG. But what may loom largest is the ongoing transition to electric vehicles that will change how a massive industry operates and employs its millions of workers. We discussed what the strikes mean for the future of the auto industry, and why the UAW is fighting an uphill battle as its industry changes.

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

Despite growing demand for clean energy, price parity with fossil fuels and friendly policies, renewable energy companies are facing some tough headwinds. We take a look at why that's happening and what Orsted's no good, very bad August can tell us about the rest of the industry.

Host: Margarita Grabert, MSCI ESG Research
Guest: Elchin Mammadov, MSCI ESG Research

With Governor Newsom poised to sign two new climate reporting bills into law, we look at what’s in them, why they matter, and why everyone is suddenly making a fuss about Scope 3 emissions. 

Host: Bentley Kaplan, MSCI ESG Research
Guests: Zohir Uddin & David Bokern, MSCI ESG Research

The Nobel Memorial Prize in Economic Sciences was awarded on Monday to Claudia Goldin, a Harvard professor, for her work to advance the world’s understanding of women in the work force. She made history by being the first woman to win the award solo rather than sharing in the prize. To honor her achievement, we discussed our own gender pay gap research that is in part informed by academics like Dr. Goldin, focusing on a new regulation in Japan that mandated companies disclose their pay gap data. And then, after we go through the numbers, we have a special part of this episode where colleagues come on to share their experiences of work before and during motherhood. 

Host: Mike Disabato, MSCI ESG Research

Guest: Yukie Shibano, Laura Nishikawa, Gillian Mollod, Siyu Liu, and Linda-Eling Lee, MSCI ESG Research and MSCI Sustainability Institute 

This week, we are returning to five stories we have already covered to see what progress has been made (if any!): The Adani Group and its attempt to address a short seller report that questioned the group’s governance that led to a massive loss in market share; the United Auto Workers strikes and the continued struggle in the auto industry; the Inflation Reduction Act and the trillions of dollars of capital is supports; what the EPA’s methane rule has done for the gas industry in the US; and how Exxon has changed after having three seats of its 12 member board taken by over by Engine No. 1, an activist investor worried about carbon emissions.

Host: Mike Disabato, MSCI ESG Research

Guest: Harlan Tufford, Yu Ishihara, Mathew Lee, Chris Cote, Antonios Panagiotopoulos; MSCI ESG Research

You trust a retail store to be convenient. You can walk in and get basically anything you need - be it food, clothes, face wash, batteries...whatever. Retail companies have built their brands on that convenience and affordability factor. But would you trust a retail company to be your healthcare provider? Well they are betting on that - Amazon, Walmart, and others are getting into the healthcare game. And in this episode, we discuss what it might look like to have an Amazon employee administer a flu test.

Host: Gabriela de la Serna, MSCI ESG Research
Guest: Namita Nair, MSCI ESG Research

Some say oil demand is soon to peak. Well, if that is true, why are some oil and gas producers growing their reserves? If there is uncertainty on how oil will perform in the future, how are oil and gas companies positioning themselves amid an ambiguous low-carbon transition? We try to answer these questions on this episode of ESG now.

Host: Mike Disabato, MSCI ESG Research

Guest: Chris Cote, MSCI ESG Research

We’re thirsty, y’all! In a year, we drink 350 billion liters of bottled water, most of it from plastic. But it’s a product with a hefty environmental footprint, and big climate risks.  We take a look at what might lie ahead for companies and investors.

Host: Bentley Kaplan, MSCI ESG Research
Guest: Cole Martin, MSCI ESG Research

We are on the ground at COP 28!! Right now, in the UAE, most of the world’s power brokers are gathered to talk about the climate emergency, the world’s plans for lowering emissions, and everything in between. For this episode, we interviewed our Global Head of Climate Research, Oliver Marchand, who is at COP 28 - meeting folks and having talks. He told us what he has been seeing and how he thinks the talks are proceeding.

Host: Mike Disabato, MSCI ESG Research
Guest: Oliver Marchand, MSCI ESG Research

As extreme weather events become more prevalent, the utilities sector is on the front lines. From investing in microgrids to burying transmission lines, there are ways to help climate-proof infrastructure. But funding is key, and it looks like the green bond market is a good a place to start. 

Host: Margarita Grabert, MSCI ESG Research
Guest: Meghna Mehta, MSCI ESG Research
Producer: Bentley Kaplan, MSCI ESG Research

We think 2024 is going to be a big year! From extreme heat hitting home and work, to the frothy wonderland of AI bumping against data privacy risks and scarce talent, to the role that private capital is going to play in the climate transition, and so much more.  Join us as we take a sneak peek at next year's sustainability and climate trends.

Host: Bentley Kaplan, MSCI ESG Research
Guest: Liz Houston, MSCI ESG Research

The carbon markets have been a provider of hope and despair in the fight against carbon emissions. In 2023, there were concerns around whether the carbon credits being sold actually abated the amount of carbon they claimed to. Yet the market still has promise and changes are being made to the methodologies of carbon credit assessment organizations to address the problems uncovered in 2023. For the first ESG now episode, we sat down with our head of Carbon Markets at MSCI, Guy Turner, to understand how carbon markets actually faired in 2023, what they might look like in 2024, and why carbon credits and offsets will remain an important part of our world’s attempts to decarbonize.

Host: Mike Disabato, MSCI ESG Research

Guest: Guy Turner, MSCI Carbon Markets

Biodiversity is everywhere from food production to pharmaceutical drugs, so the biodiversity crisis puts both society and the global economy at risk. And while it is like the climate crisis in its cause, there are complexities and measurement difficulties that make the biodiversity crisis a distinct problem for investors to address compared to the climate crisis. On this episode we sat down with our colleague Arne Klug to understand where this complexity comes from and how can investors go about it when trying to include biodiversity in their investment practices.  

Host: Gabriela de la Serna, MSCI ESG Research

Guest: Arne Klug, MSCI ESG Research

One door plug blowout, one emergency landing and zero injuries. For Boeing, quality checks and tailored governance structures aren’t adding up to a great safety record. But looking at the underlying ESG data might shed light on where things might be going wrong. 

Host: Bentley Kaplan, MSCI ESG Research
Guests: Mike Disabato & Harlan Tufford, MSCI ESG Research

Audit firms have been under scrutiny lately after scandal and concern have led some to worry the vital industry is in trouble. But to understand whether fears around an auditor are credible, one must understand how to assess auditor quality. In this episode, we teach you how to assess an audit firm, and answer the question that some are posing: is there a crisis in the audit industry?

Host: Mike Disabato, MSCI ESG Research

Guest: Jon Ponder, MSCI Carbon Markets

The stakes on data protection and privacy are only getting higher. Hacks, breaches and data leaks are becoming bugbears of the modern corporate world. Insurers offer products for cyber-related incidents, but in a complex, evolving risk landscape, there are a lot of asterisks. We take a look at the current cyber insurance market, and how insurers are de-risking their positions through cyber catastrophe bonds. 

Host: Margarita Grabert, MSCI ESG Research
Guest: Federico Darakdjian, MSCI ESG Research

Valentines day is replete with marketing by luxury brands attempting to capture the eyes of anxious lovers wanting to do right by their partners during the holiday. But what can you know about the product you’re buying from a luxury company? Can you know where its raw materials are sourced? Or where that material is produced? And who’re running these luxurious companies? We discuss all this and more on this week’s episode of ESG now.

Host: Mike Disabato, MSCI ESG Research

Guest: Liz Houston, MSCI ESG Research

ExxonMobil filed a legal complaint against two of its own shareholders, who were hoping to put a climate-related proposal to a vote at the company’s upcoming AGM. We discuss why it’s a decision that could have consequences for the wider shareholder community and the companies they invest in.  

Host: Bentley Kaplan, MSCI ESG Research
Guest: Harlan Tufford, MSCI ESG Research

We have been reporting on board’s gender diversity since 2009, and while progress has undoubtedly been made, the road ahead is still long. Linda-Eling Lee from MSCI’s Sustainability Institute tells us why we started compiling this report in the first place, and how it has managed to remain relevant in 2024. Then, our colleague Christina Milhomem tells us what the numbers say- what has or hasn’t changed, which regulations are coming our way- and why investors should think of diversity as an indicator of management oversight. 

Host: Gabriela de la Serna, MSCI ESG Research

Guest: Linda-Eling Lee, MSCI Sustainability Institute; Christina Milhomem, MSCI ESG Research

The SEC’s climate disclosure rule is finally here. It’s been a journey, one akin to a film drama full of plot twists, cliff hangers and edge of the seat moments. So in honor of the drama, this week we do a film review of sorts on this wide reaching regulation - going into the plot, the actors involved, and how the industry is likely to be affected by it. 

 Host: Michael Disabato, MSCI ESG Research

Guest: Zohir Uddin, MSCI Government and Regulatory Affairs; Mathew Lee, MSCI ESG Research

Plastic is an inescapable reality of the modern world. But trading off its convenience and versatility for environmental and health impacts is getting harder. Companies that make or rely on plastic are being pushed to improve recyclability and reuse. And as tempting as it is to believe everything you read on a label, it looks like the road to a genuine circular economy is still going to be a little bumpy.

Host: Margarita Grabert, MSCI ESG Research
Guest: Sam Block, MSCI ESG Research

This week we provide an update to our March 2022 episode titled Children in the Cocoa Field that explored 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 was a great story about how technology is allowing for better transparency in our world's supply chain.

 Host: Michael Disabato, MSCI ESG Research

Guest: Cole Martin, MSCI ESG Research

For some investors, having a climate-savvy director on a company’s board may seem like a non-negotiable. But data from some of the world’s biggest greenhouse gas emitters shows that successful climate governance is complex and may require more than pinning all your hopes on a climate superstar. 

Host: Bentley Kaplan, MSCI ESG Research
Guest: Florian Sommer, MSCI ESG Research

Coal still makes up a big cut of China’s energy mix. But the country’s growth in renewables is undeniable. As climate targets are laid down and climate change accelerates, figuring out China’s emissions trajectory is tricky. And that’s OK – we love a tricky discussion. 

Host: SK Kim, MSCI ESG Research
Guests: Cody Dong & Siyao He, MSCI ESG Research

Everyone is talking about AI, but on today’s episode we focus on the technology’s potential to disrupt health care. Then, we switch things up to look at how wildfires are exacerbating physical, legal and financial risks for electric utilities in the U.S. 

Host: Gabriela de la Serna, MSCI ESG Research
Guests: Namita Nair & Mathew Lee, MSCI ESG Research

Alcoholic beverage companies are trying to navigate through a changing world, one where tastes are evolving, and resources are getting scarcer. In this episode, delve into the significant challenges and innovative strategies the alcoholic beverage industry is employing to combat this shift in drinking trends.

Host: Michael Disabato, MSCI ESG Research

Guest: Cole Martin, MSCI ESG Research

Airlines are part of a hard to abate industry for a reason as there is not one straightforward path to decarbonization. In this episode, we discuss the options that airlines have to reduce their direct emissions in the coming decades – and we tell you which ones are more likely to be more viable.

Host: Gabriela de la Serna, MSCI ESG Research

Guest: Michael Disabato, MSCI ESG Research

Maybe a rose by any other name would smell as sweet,  but that’s not going to fly for sustainability funds in the EU. On this episode we break down ESMA’s latest fund guidelines and discuss their place in a regulatory landscape with all kinds of moving pieces. 

Host: Bentley Kaplan,  MSCI ESG Research
Guests: Meggin Eastman & Simone Ruiz-Vergote, MSCI ESG Research

They may not be new, but climate funds have recently hit their stride. From managing transition risk, to targeting technology opportunities, to aligning with the Paris agreement – these funds come in all shapes and sizes and with pretty diverse objectives. On this episode we catch you up on where climate funds stand today, and how differently they’re evolving in public and private markets.

Host: Margarita Grabert, MSCI ESG Research
Guest: Rumi Mahmood, MSCI Sustainability Institute

When it comes to climate altering carbon emissions, investors, like asset managers and banks, used to only measure their direct carbon emissions from their buildings and purchased electricity. But now, they are being asked by regulators, stakeholders, and clients to report on the emissions associated with their investment portfolios – a much more complicated and vital task. In this episode, guest Carrie Wang explains to host Mike Disabato why portfolio carbon footprinting is so important to the future of investing and so complicated. 

Host: Mike Disabato, MSCI ESG Research

Guest: Carrie Wang, MSCI ESG Research