MSCI Acquires Trove Research For Access To Carbon Credit Market Insights

MSCI Acquires Trove Research For Access To Carbon Credit Market Insights

In a recent Verdantix report on innovation by providers of climate data to financial services firms, we found a gap in most vendors’ access to carbon credits data. S&P Global was one of the very few with any data, due to their ownership of Platts. Last week, however, another major player in the space, MSCI, moved to close this gap.

On October 10^th, MSCI announced that it had signed a purchase agreement to acquire Trove Research. Trove Research’s deep expertise in carbon markets, coupled with MSCI's global reach, signals a step forward in integrating carbon metrics more comprehensively into the world of investment decisions. Furthermore, the acquisition will help broaden the market's understanding of climate-related risks and opportunities.

The acquisition matters because it:

• Supports data-driven decisions: given the ability to model future carbon prices and policy risk, MSCI can now offer clients enhanced, data-driven insights on transition risk.
• Increases carbon transparency: the acquisition increases the focus on carbon transparency and accountability. Firms everywhere are being nudged to align with net zero goals; reflecting this global trend, MSCI's helps bring credibility to the market.
• Bridges the knowledge gap: Trove Research has focused on simplifying complex carbon data. By joining forces with MSCI, a wider audience will now benefit from Trove’s carbon credit insights.

What’s next?
We anticipate more robust tools, sharper analytics and a more comprehensive approach to evaluating carbon risk in investment portfolios. As investors worldwide grapple with the effects of climate change, and carbon offset markets confront reputational concerns, this acquisition brings new momentum to a market that will likely be part of our efforts to combat global warming.

Retail and commercial banks, institutional investors, asset managers, and other financial market decision-makers looking to gain deeper insight into the risks and opportunities of the climate transition journey will be better equipped by this union. To read more about innovation among climate financial data providers, see our recent Smart Innovators report or watch our webinar on Harnessing The Power Of Net Zero Financial Data And Analytics Providers.