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MSCI has launched its ratings service to measure the environmental, social and governance focus of portfolio holdings. The ESG Fund Metrics will measure funds’ exposure to factors such as sustainable impact, values alignment and ESG risks, including carbon footprint. According to the metrics, each fund will receive an overall score from zero to ten, which indicates the ability of holdings to manage various levels of risks. It will also use a peer group percentile rank and individual ‘E’, ‘S’ and ‘G’ scores. The percentile ranking will be relative to all global funds receiving a score, as well as relative to the fund’s peer group.