MSCI, a provider of decision support tools and services for investors, and Moody’s have entered into a partnership agreement aimed at improving transparency and delivering data-driven risk solutions.

Financial terms of the agreement were not revealed.

The collaboration will leverage their respective strengths to bring greater transparency on environmental, social, and governance (ESG) and sustainability to markets, facilitating informed decision-making.

Moody’s will utilise MSCI’s sustainability data and models. This includes MSCI’s ESG ratings and content, which assess a company’s management of financially relevant ESG risks and opportunities.

Over time, Moody’s intends to integrate MSCI’s sustainability content across its offerings for customers in banking, insurance, and corporate sectors.

In return, MSCI gains access to Moody’s Orbis database which is said to have firmographic information on over 500 million entities. This will enable MSCI to expand its coverage of private company ESG metrics.

Additionally, both companies will explore solutions using Moody’s private company data and credit scoring models to enhance insights into the private credit market.

Moody’s president and CEO Rob Fauber said: “Moody’s is excited to partner with MSCI, a leader in solutions for the global investment community and a pioneer in ESG and sustainability.

“This is a real win-win, as Moody’s customers gain access to MSCI’s renowned ESG content and MSCI customers will gain access to Moody’s world-class risk assessment expertise, data and insights.”

As per the parties, their partnership does not affect Moody’s Ratings, which will continue to provide transparency on how ESG factors impact credit ratings through its proprietary Credit Impact Scores and Issuer Profile Scores.

Moody’s Ratings will also maintain its sustainable finance offerings such as Second Party Opinions and Net Zero Assessments, alongside its climate solutions for customers.

MSCI chairman and CEO Henry Fernandez said: “We are exceptionally pleased to partner with Moody’s to offer MSCI’s ESG and sustainability data to Moody’s broad base of global customers.

“Sustainability remains one of the most important trends reshaping the global investment landscape, and the shift to private assets is another. This agreement will help MSCI expand our private company ESG coverage and deliver enhanced solutions across client segments and asset classes.”