Index provider MSCI is seeing increased demand for environmental, social and governance (ESG) research from investors into Africa in the wake of Regulation 28, which called on South African pension funds to formally integrate ESG into their investment processes.
The firm has expanded its ESG research capability on companies that form part of the MSCI South Africa and EFM Africa ex-South Africa indices.
“Africa is an important focus for MSCI. As a result of changes to South African pension and CIS regulations in 2011, we are seeing increased demand from our institutional clients for tools to support their investment deci- sions regarding both African and global equity markets,” MSCI executive director Gareth Allison told Africa FM.
Investec Asset Management this month selected MSCI ESG Research’s ESG research, ratings and screening tools to help it integrate ESG factors into its investment process.
According to Allison, client demand has led to frontier markets countries being added to MSCI’s Barra Global Equity Model, and to expanded ESG research coverage of companies within the MSCI South Africa and MSCI EFM Africa ex-South Africa Indices