MSCI

ESG

MSCI Inc.

Reviewed by 7wData
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MSCI builds and maintains financial indexes, risk and performance analytics, and ESG and climate data products used by investors to benchmark portfolios, manage risk, and inform investment decisions.

MSCI Inc. (NYSE: MSCI) is a New York-based provider of index, analytics, and data tools for the global investment community. Founded in 1969 as a joint venture between Morgan Stanley and Capital International, the company created the first global equity indexes in 1970. Today, MSCI’s indexes serve as benchmarks for an estimated $17 trillion in assets under management.

In full-year 2025, MSCI reported operating revenues of $3.13 billion, up 9.7% year-over-year, with an adjusted EBITDA margin of 60.8%. The company ended 2025 with 6,268 employees. Its revenue model is split between recurring subscription sales (e.g., analytics, ESG ratings, climate data) and asset-based fees tied to ETFs and other index-linked products.

In Q4 2025, asset-based fees rose 20.7%, driven by record ETF inflows into MSCI-linked products. The company has expanded beyond indexing into private markets data, sustainability ratings, and AI-enhanced analytics. MSCI’s client base includes asset managers, banks, wealth managers, hedge funds, and asset owners.

The company faces scrutiny over the methodology and consistency of its ESG ratings, and its revenue is partly tied to volatile equity markets. Recent index announcements include the addition of the Texas Stock Exchange to eligible exchanges for the MSCI USA Equity Universe (June 2026).

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Who buys this

  • Asset managers (e.g., BlackRock, Vanguard) who license MSCI indexes for ETFs and mutual funds
  • Banks and broker-dealers using MSCI risk analytics and portfolio construction tools
  • Wealth managers and financial advisors relying on MSCI indexes for model portfolios
  • Hedge funds using MSCI factor models and ESG data
  • Asset owners (pension funds, sovereign wealth funds) for benchmarking and asset allocation

Strengths and what to watch

Strengths

  • Dominant market position in global equity indexing: MSCI indexes underpin an estimated $17 trillion in assets, providing a recurring revenue base from licensing and asset-based fees.
  • Consistent financial growth: MSCI has delivered double-digit adjusted EPS growth for 11 consecutive years (through 2025), with operating margins above 54% and strong free cash flow.
  • Diversified product suite beyond indexes: MSCI has built significant revenue streams in ESG ratings, climate analytics, private markets data, and risk management tools, reducing reliance on any single product line.

Watch for

  • ESG ratings methodology controversies: MSCI’s sustainability ratings have been criticized for lack of transparency and inconsistent scoring, drawing regulatory scrutiny in the EU and US.
  • Revenue sensitivity to equity market volatility: Asset-based fees, which grew 20.7% in Q4 2025, are directly tied to AUM levels in MSCI-linked products; a sustained market downturn would pressure this revenue stream.
  • High share buyback and debt levels: MSCI repurchased $2.47 billion in shares in 2025, funded partly by debt; net leverage could become a concern if earnings growth slows or interest rates remain elevated.

Recent moves

Key Information

Industry
ESG
Founded
1969
Headquarters
New York, USA

Frequently Asked Questions

What does MSCI do?

MSCI builds and maintains financial indexes, risk and performance analytics, and ESG and climate data products. Investors use these tools to benchmark portfolios, manage risk, and inform investment decisions. Founded in 1969, MSCI now underpins an estimated $17 trillion in assets under management.

How does MSCI make money?

MSCI generates revenue through recurring subscription sales for analytics, ESG ratings, and climate data, plus asset-based fees tied to ETFs and other index-linked products. In 2025, total operating revenue reached $3.13 billion, with asset-based fees rising 20.7% in the fourth quarter.

Who are MSCI's main customers?

MSCI's clients include asset managers like BlackRock and Vanguard, banks, wealth managers, hedge funds, and asset owners such as pension funds. They license MSCI indexes for ETFs, use risk analytics for portfolio construction, and rely on ESG data for sustainable investing decisions.

What are the risks of investing in MSCI?

MSCI faces scrutiny over its ESG ratings methodology, which has been criticized for lack of transparency and inconsistent scoring. Revenue is also sensitive to equity market volatility, as asset-based fees depend on AUM levels. High share buybacks and debt levels could pressure finances if growth slows.

How did MSCI perform financially in 2025?

In full-year 2025, MSCI reported operating revenues of $3.13 billion, up 9.7% year-over-year, with an adjusted EBITDA margin of 60.8%. Adjusted EPS was $17.28, marking the 11th consecutive year of double-digit growth. The company ended 2025 with 6,268 employees.

What is the controversy around MSCI's ESG ratings?

MSCI's sustainability ratings have been criticized for lack of transparency and inconsistent scoring, drawing regulatory scrutiny in the EU and US. Critics argue the methodology is unclear, which can mislead investors relying on these ratings for ESG-focused investment decisions and portfolio benchmarking.

Sources

  1. ir.msci.com — Full-year 2025 revenue of $3.13B, adjusted EPS $17.28, 11th straight year of double-digit adjusted EPS growth, headcount 6,268, share buyback $2.47B, asset-based fees up 20.7%
  2. ir.msci.com — Q2 2025 revenue $772.7M, organic recurring subscription run rate growth 7.4%, retention rate 94.4%
  3. www.reuters.com — Q3 2025 profit $325.4M, index segment recurring subscriptions up 8.3%, total operating revenue $793.4M
  4. app2.msci.com — June 2026 index announcements including addition of Texas Stock Exchange to eligible exchanges
  5. www.msci.com — Company overview, product categories (Data & Analytics, Indexes, Research), $17T in private investment data claim, Global Investment Tracker report
  6. www.macrotrends.net — Historical revenue data: 2025 $3.134B, 2024 $2.856B, 2023 $2.529B; Q1 2026 revenue $0.851B