MSCI - 1792 Exchange

Rating Overview

MSCI is High Risk.

MSCI is High Risk. The company yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	High Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	High Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

High

Rationale:

MSCI boycotted and gave severe risk scores to Israeli companies for construction of security and surveillance systems, along with some banks for doing business in Israel (1)(2)(3)(4)(5)(6)(7). The company is a signatory of the Principles for Responsible Investment, incorporating ESG issues into investment analysis, decision-making, and other business practices (8)(9). MSCI integrates ESG into its business practices. From its Supplier Code of Conduct: “MSCI is committed to environmental sustainability including the management of carbon emissions, climate and nature risks and opportunities, and the implementation of sustainable operational practices… MSCI expects its Suppliers to implement appropriate standards to do likewise in accordance with the MSCI Environmental Policy” (10). Also, from its 2023 Corporate Responsibility Roadshow: “We believe that integrating ESG factors into our compensation programs helps to ensure executive decision making aligns with our goals for corporate culture and corporate sustainability” (11).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

MSCI does not appear to discriminate against charitable organizations based on views or beliefs (1)(2).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

MSCI appears to prioritize diversity over merit in its recruitment and hiring. From its Corporate Responsibility Page: “MSCI incorporates diversity, equality and inclusion into our Talent Acquisition and Talent Development processes” (1). The company offers Employee-wide Inclusive Leadership training (2). The company does not provide viewpoint protections for its employees (3).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

MSCI is a member of the Net Zero Financial Service Providers Alliance, committed to net zero carbon emissions by 2050 (1)(2). The company is committed to net zero carbon emissions by 2040 (3). The company supports DEI within its business practices. From its 2023 annual report: “Our talent and leadership development programs are designed to ensure we have the right people with the necessary skills to deliver on MSCI’s strategy, including a workplace that values and promotes diversity, equity and inclusion” (4). The company supports ESG within its business practices. From its 2024 Corporate Responsibility Roadshow: “In 2023, MSCI conducted an externally supported ESG materiality assessment to identify and prioritize ESG topics to inform our sustainability reporting and strategies” (5).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

MSCI is a corporate partner of the National LGBT Chamber of Commerce (1). The company is a Member of Out Leadership, a global network of LGBT+ business leaders from major companies that seeks to advance LGBTQ+ representation in corporate leadership and integrate LGBTQ+ priorities into workplace strategies. The first LGBTQ+ B-Corporation, Out Leadership accomplishes this through convening leadership summits, directing talent initiatives, and providing advisory solutions that emphasize the positive impact of LGBT+ inclusion for business (2)(3)(4)(5).
Otherwise, there are no publicly known cases of MSCI using corporate funds to advance ideological causes, organizations, or policies (6).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

Lower

Rationale:

MSCI does not operate a PAC at this time and has not used its lobbying for ideological purposes (1)(2)(3).