On July 2nd, MSCI and Moody's announced a strategic cooperation agreement in which both parties will fully leverage their respective strengths to increase transparency in the ESG and sustainable development sectors, helping investors make more informed decisions. According to the agreement, Moody's will introduce MSCI's industry-leading ESG ratings and news, mainly used to measure the management level of ESG risks and opportunities related to finance. After adopting MSCI's data, Moody's plans to gradually switch from providing its existing ESG data and ratings to providing MSCI's sustainable news, serving customers in the banking, insurance and corporate fields with a range of solutions.
MSCI will use Moody's Orbis database to expand coverage of ESG data for private enterprises. Moody's Orbis database is a globally leading corporate information database, covering more than 500 million enterprises' data. In addition, MSCI and Moody's will explore developing solutions based on Moody's private enterprise data and credit rating models, to provide deeper insights into the private credit market.
Moody's President and CEO Rob Fauber said that Moody's is pleased to collaborate with MSCI. MSCI is a leader in providing solutions to the global investment community and a pioneer in the ESG and sustainable development fields. This is a truly win-win cooperation, where Moody's customers can access MSCI's world-renowned ESG news, while MSCI's customers will benefit from Moody's global leading risk assessment expertise, data, and insights.
MSCI Chairman and CEO Henry Fernandez said he is very pleased to cooperate with Moody's to provide MSCI's ESG and sustainable data to its large global customer base. Sustainable development is still one of the most important trends shaping the global investment landscape, while allocating assets to private equity is another major trend. This cooperation will expand MSCI's ESG coverage of private enterprises and create enhanced solutions for customers across asset classes.