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SYDNEY--([ BUSINESS WIRE ])--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools, announced today that it has signed an agreement with Local Government Super (LGS) in Australia to provide MSCI ESG IVA and Impact Monitor research as well as customized reports to measure and monitor ESG and carbon characteristics of its portfolios. LGS manages around AUD 6 billion in retirement savings for current and former local government employees across New South Wales, including approximately AUD 3.3bn invested in responsible investment strategies.

MSCI ESG Research tools support the integration of environmental, social, and governance (ESG) factors into the investment process and facilitate the implementation of the UN Principles of Responsible Investment (UN PRI). The customized reports will allow LGS to measure and monitor its exposure to ESG risks and opportunities at the individual stock and manager levels. They also analyze the ESG characteristics of portfolios relative to MSCI ESG and non-ESG indices and measure the relative ESG exposure by sector and key ESG risks such as water, carbon, health and safety, and supply chain.

In addition, MSCI ESG Research will use its Carbon Beta product to assess each LGS portfolio in comparison to relevant benchmarks. These reports will measure each portfolioas carbon intensity, carbon risk, and exposure to strategic opportunities related to climate change.

Peter Lambert, CEO at LGS, said, aLocal Government Super believes that a well-developed responsible investment strategy can both assist in generating long-term risk-controlled investment returns, while also aligning ourselves with our members' environmental and social concerns. The implementation of the new Carbon Emissions and ESG reporting capability will enable us to better analyze and communicate our responsible investment outcomes to members and the Board, and maintain leadership in this area.a

Remy Briand, Managing Director at MSCI and Global Head of Index and ESG Research, added, aWe are delighted to be working with LGS to provide them with the tools they need to assess ESG and Carbon Emissions exposure across their portfolios. The customized portfolio reports fill a current market gap as, for the first time, institutional investors will be able to regularly measure and monitor the aggregate ESG exposure of a portfolio and compare that exposure to a benchmark ESG index.a

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About MSCI ESG Research

MSCI ESG Research products and services are designed to provide in-depth research, ratings and analysis of environmental, social and governance-related business practices to companies worldwide. ESG ratings, data and analysis from MSCI ESG Research are also used in the construction of the MSCI ESG Indices.

For further information on MSCI ESG Research, contact [ esgclientservice@msci.com ], or visit [ www.msci.com/esg ]

About MSCI

MSCI Inc. is a leading provider of investment decision support tools to investors globally, including asset managers, banks, hedge funds and pension funds. MSCI products and services include indices, portfolio risk and performance analytics, and governance tools.

The companyas flagship product offerings are: the MSCI indices with approximately USD 7 trillion estimated to be benchmarked to them on a worldwide basis¹; Barra multi-asset class factor models, portfolio risk and performance analytics; RiskMetrics multi-asset class market and credit risk analytics; MSCI ESG (environmental, social and governance) Research screening, analysis and ratings; ISS governance research and outsourced proxy voting and reporting services; FEA valuation models and risk management software for the energy and commodities markets; and CFRA forensic accounting risk research, legal/regulatory risk assessment, and dueadiligence. MSCI is headquartered in New York, with research and commercial offices around the world.

¹As of June 30, 2011, based on eVestment, Lipper and Bloomberg data.

For further information on MSCI, please visit our web site at [ www.msci.com ]

About Local Government Super

Local Government Super (LGS) is recognized as an industry leader in responsible investment and the management of environmental, social and governance (ESG) risks and opportunities across its investment portfolio.

LGS manages around AUD 6 billion in retirement savings for current and former local government employees across New South Wales. It has approximately AUD 3.3bn invested in responsible investment strategies across Australian shares, international shares, property, and the absolute return and private equity asset classes.

LGS is a signatory to the United Nations Principles of Responsible Investment and a member of the Investor Group on Climate Change, Australian Council of Superannuation Investors, the Responsible Investment Association of Australasia and the Global Real Estate Sustainability Benchmark. LGS is also a shareholder in Australian ESG research and engagement firm Regnan.