Qatar - Global index compiler MSCI has set out strategies to increase its issuer interaction with the listed companies in the Qatar Stock Exchange (QSE) on ESG (environmental, social and governance).
This move helps the corporates in understanding the transformative power of the ESG ratings.
"Issuer engagement in the MSCI emerging markets is now at 50% and today’s event with QSE listed companies is part of that process (of increasing the issuer engagement)," Beth Byington, Global Head of Corporate ESG and Climate Solutions, told a seminar, jointly hosted by MSCI and QSE.
The corporates gain to better understand investor expectations through their MSCI assessments, validating ever increasing MSCI's issuer engagement rates with MSCI ACWI (All Country World Index) at 78% in 2022, she told the seminar, primarily aimed at listed companies, to assist in the understanding of the ratings methodology underlying the MSCI QSE 20 ESG Index.
The MSCI QSE 20 ESG Index, launched in November 2021, is designed to identify the top 20 securities within the MSCI Qatar IMI Index that demonstrate the best ESG profile.
"We have been consistently engaged with corporates over the last five years as part of a dedicated awareness programme around sustainability and effective non-financial reporting," said QSE chief executive officer Abdul Aziz Nasser al-Emadi.
Highlighting that seminar is another element of its ongoing commitment to ensuring listed companies have the knowledge necessary to implement best practice in due course; he said "we are pleased to be working with MSCI to increase the understanding of such products and services.”
ESG through a narrow focus has its detractors but sustainability more broadly is already an integral part of the global capital markets’ infrastructure and reporting on sustainability matters is now part of the capital allocation decision-making process.
Jasmine Mehta of MSCI emphasised that highly MSCI ESG rated companies tend to show less systematic volatility, lower values for beta and higher valuations.
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