MSCI ESG Indices

With 40 years of expertise in index construction and maintenance, MSCI aims to set new standards for ESG indices – allowing clients to more effectively benchmark ESG investment performance, issue index-based ESG investment products, as well as to manage, measure and report on their compliance with ESG mandates. 

The MSCI ESG indices are grouped into the following main categories:

• Best-in-Class indices
  The investment opportunity set (“ESG beta”) of companies with high ESG ratings relative to their sector peers, integrating sustainability analysis into the existing MSCI index construction process.
• Values-based
  • Socially Responsible
    The investment opportunity set of companies with high ESG ratings and exclude companies involved in particular industries, such as tobacco, nuclear power or GMOs. 
  • Religious
    The investment opportunity set of companies compatible with particular religious values. The indices exclude companies that are incompatible with these values.
• Universal Owner
  The investment opportunity set of companies that comply with global norms of corporate behavior. The indices exclude a limited number of companies that violate these norms, such as producers of controversial weapons or companies involved in serious human rights abuses.
• Environmental
  Focused investment opportunity sets that reflect specific environmental themes, such as renewable energy or clean technology.
• Custom
  In addition, MSCI calculates custom ESG indices using unique ESG requirements specified by clients.

The MSCI ESG Indices bring together the widely-accepted MSCI Global Investable Market Indices Methodology with in-depth analysis and ratings from MSCI ESG Research². Today, MSCI is the only major index provider with a separate in-house ESG research business unit.

 ¹ MSCI ESG Indices are the continuation of indices developed over the past 20 years by KLD, which became part of MSCI following its acquisition of RiskMetrics in June, 2010.

 ² MSCI ESG Research is the successor to ESG pioneers KLD, Innovest and IRRC, which were acquired through MSCI’s recent acquisition of RiskMetrics. The MSCI ESG Indices use ratings and other data, analysis and information supplied by MSCI ESG Research. MSCI ESG Research is produced by RiskMetrics’s wholly-owned subsidiary, Institutional Shareholder Services Inc. ("ISS").

  ³The MSCI USA Broad ESG Index will converge with the MSCI USA IMI ESG Index; they will be identical as of the effective date of the Quarterly Index Review in May 2011.