September 17, 2021

ESG –could you elaborate on what are the competitive advantages of your product and what is the vision for Sustainalytics – where do you want to take it to next and how? Whilst we are on ESG, when you lose out on mandates or pitches, what is the main reason? Would it be fair to assume that in Index, MSCI has a large advantage vs. everyone else but in all other areas particularly data there is more to play for?

Please reference Michael Jantzi’s presentation during our 2021 Annual Meeting of Shareholders, during which he gives a great overview of our vision for Sustainalytics.

We believe that one of the key differentiators for Sustainalytics is our ability to work with investors across the investment value chain, helping to inform their decisions from the pre-investment stage when candidates are selected from a universe of investable options, to the investment stage, when the decision to take a position is made, and then all the way through to the post-investment stage, when clients monitor and either vote on or engage with their investments. We’re also proud of the differentiated research methodology that underpins our ESG Risk Rating, which captures both managed and unmanaged risk exposure, and we believe in the value of our large and responsive customer service organization. We believe these are the main factors that help us stand out against our competitive set.

Larger competitors have the ability to bundle services together into a comprehensive package that often include ESG-related offerings as an add-on; however, we occasionally get competitive bid requests after introductory pricing periods run out. With Sustainalytics now a part of the larger Morningstar organization, we have more opportunities to bundle complementary offerings, and believe that this strategy can ultimately help Sustainalytics extend its reach to new customers, particularly in retail wealth.


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