MSCI Acquires Climate Risk Data Firm First Street for $120 Million

Financial data and analytics provider MSCI has announced the acquisition of First Street, a climate risk assessment firm, for $120 million. The purchase is seen as part of MSCI's strategy to expand its environmental, social, and governance (ESG) data products. First Street specializes in modeling physical climate risks such as floods, wildfires, and storms. The company offers property-level climate risk assessments across the United States, helping investors and insurance companies better understand potential losses related to climate change. With this acquisition, MSCI aims to integrate climate risk data into portfolio analyses and provide clients with more comprehensive ESG solutions. Company officials stated that First Street's technology will complement MSCI's existing climate models, creating value particularly for investors in the real estate and insurance sectors. The deal is expected to close in the first quarter of 2024. Through this move, MSCI strengthens its position in the climate risk data market while continuing to grow amid increasing regulatory pressures and investor demand for ESG data services. This is not investment advice.