MSCI INC

On February 12, 2024, a complaint was filed against MSCI Inc. concerning its business relationships with companies linked to the Myanmar military.

MSCI Inc., as a leading provider of critical investment decision support tools, exercises significant influence over global capital allocation through its indexes and ESG ratings. This market position grants it substantial indirect political power. A 2024 shareholder proposal from the National Center for Public Policy Research challenged the company to report on the risks of its business activities being used for "regulatory capture," citing academic research that theorizes firms may use corporate political activity as a nonmarket strategy to reduce regulatory impact on their business models.

While MSCI has a public policy of not using corporate funds for direct political contributions, its core products—ESG ratings and indexes—are themselves instruments of market governance that can shield or pressure companies based on their environmental and social conduct. The company's methodologies and criteria directly shape which corporate practices are financed or excluded by institutional investors, effectively setting de facto industry standards. This role as a private-sector regulator creates an inherent conflict where its analytical frameworks could be influenced to protect certain business interests or sectors from capital market consequences.