The analytical tool enables institutional asset owners and managers to better understand the impact of climate change on private asset portfolios

MSCI, a leading provider of critical decision support tools and services for the global investment community, and The Burgiss Group, a market-leading provider of data, analytics and technology solutions for investors of private capital, have announced the launch of a new analytical tool that enables institutional asset owners and managers to better understand the impact of climate change on private asset portfolios.

Launched ahead of COP26, the Carbon Footprinting of Private Equity and Debt Funds measures the carbon intensity of private equity and debt funds. The analytical tool is designed to address a serious transparency gap in the private assets market, spanning private equity, fixed income, and venture capital investments. Though the transition to net-zero affects every asset, the challenge of addressing climate risk intensifies with private portfolios, both because of the importance of private assets in institutional portfolios and the opacity that can characterise them.