The change follows a delayed response to the Adani controversy that has left the market wondering about the lack of action from ESG’s most influential gatekeeper. After short-seller Hindenburg Research accused the Indian conglomerate of fraud and market manipulation last month, ESG ratings firms and index providers have rushed to reassess Adani companies.
One of the market’s most popular ESG index providers says it will speed up its review of companies, after it failed to address allegations of poor governance at the Adani Group companies as quickly as its competitors.
MSCI will now review holdings in its ESG indexes on a monthly basis, more frequently than its previous quarterly schedule, the firm said on Feb 16. Any companies involved in significant ESG controversies, and those that do not comply with the principles outlined by the United Nations global compact, will be stripped from the indexes.
