Headquarters of Korea Investment Holdings in Yeouido, Seoul / Courtesy of Korea Investment Holdings

Korea Investment Holdings received an upgrade in Morgan Stanley Capital International's (MSCI) environmental, social and governance (ESG) ratings, the company said Friday.

The holding company wholly owns Korea Investment & Securities, the country's Tier 1 brokerage house.

It said its rating moved up three notches — from B to A — in the MSCI ESG Ratings, which measures risk and management practices of listed companies worldwide in seven grades, ranging from CCC to AAA every year.

The measurement is based on its assessment of 10 segments involving ESG issues.

Global investors refer to MSCI ESG Ratings in their decision-making process with regard to a company's resilience and sustainability.

"A three-notch upgrade in the MSCI ESG rating is a noteworthy achievement on a global scale in the financial industry, considering the rating is globally recognized," Korea Investment Holdings said.

It noted that the A rating is "anticipated to help enhance the company's value and credibility in the long run."

The company added that its yearslong effort in implementing an ESG-focused management system across all subsidiaries paid off.

For instance, Korea Investment & Securities set up a carbon solution department specializing in sustainability-related operations such as carbon credits.