ESG Indexes - Featured box

 
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Climate Change Now a Top-Level Consideration for ESG Index Methodologies

The climate profile of several ESG Indexes is getting a significant enhancement on Dec. 1 with MSCI SRI Indexes explicitly excluding fossil fuel companies and MSCI ESG Leaders and ESG Focus Indexes no longer including thermal coal and unconventional oil and gas industries.

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Intro prara

MSCI Inc. is the world’s largest provider of Environmental, Social and Governance (ESG) Indexes1 with over 1,500 equity and fixed income ESG Indexes designed to help institutional investors more effectively benchmark ESG investment performance and manage, measure and report on ESG mandates.

MSCI Inc. offers a range of Climate Indexes for investors who seek to incorporate climate risks and opportunities into their investment process. For more information, visit msci.com/climate-indexes

30 Years of ESG Indexes

Take a look at the history of ESG indexes in our timeline below and explore the interactive here. We highlight key milestones in the evolution of ESG indexes since 1990, beginning with the launch of the Domini 400 Social Index (now the MSCI KLD 400 Social Index), through to the launch of the MSCI Fixed Income ESG Indexes in 2020. We also highlight significant developments such as MSCI's acquisition of Carbon Delta in 2019.


History-ESG-Indexes


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MSCI ESG Index Framework

MSCI ESG Index Framework

Incorporating ESG into your investment strategy or product development typically starts with understanding your ESG objectives. We have organized our indexes into three categories, integration, values and impact. To learn more, visit What is ESG.

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How can investors use the MSCI ESG & Climate Indexes?

The MSCI ESG Indexes are designed to provide institutional investors with effective and transparent tools to integrate ESG or Climate considerations in their investment process and portfolios.2

The MSCI ESG & Climate indexes: designed to support investors seeking to align their benchmarks with their objectives:

The MSCI ESG Ratings and Climate Metrics from MSCI ESG Research LLC serve as an input into the MSCI ESG Indexes. Learn more about MSCI ESG Ratings here.

MSCI ESG Research

MSCI ESG Research is a pioneer in measuring forward looking ESG risk and use of alternative data and AI technology, with deepest history and 40+ years of experience3 in objectively measuring and modelling ESG performance

Broad ESG Ratings

Broad ESG Ratings coverage of 14,000 companies representing more than 680,000 securities with 90% of equity and fixed income market value 4

Index profile


 

Index Profile Tool

MSCI is pleased to publish the metrics and the methodology disclosures for all EU regulated MSCI equity and blended indexes, including MSCI ESG indexes and non-ESG indexes.

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MSCI ESG EXPERIENCE AND LEADERSHIP

MSCI ESG Experience and Leadership5


MSCI ESG Research

  • First ESG provider to assess companies based on industry materiality, dating back to 1999. Only dataset with live history (12+ years) demonstrating economic relevance6
  • Objective rules based ESG ratings, with an average 45% of data,7 coming from alternative data sources, utilizing AI tech to extract and verify unstructured data
  • First ESG ratings provider to measure and embed companies’ ESG risk exposure 8

MSCI Inc.

  • First ESG Index: MSCI’s KLD 400 Index is the longest running ESG index with 30 years of live history9 and above-benchmark returns since 199410
  • No simulated history: ESG index history going back over 10 years for MSCI World, back to 2013 for MSCI Emerging Markets
  • First to launch Low Carbon Indexes to address the two dimensions of carbon emissions and fossil fuel reserves in September 2014. 11
  • First to launch Provisional Climate Change EU Climate Transition and EU Paris-Aligned Indexes in November 201912


Climate Solutions Product card without image

Learn more about our ESG solutions

Our team of experts is focused on in-depth research, ratings and analysis of the environmental, social and governance-related business practices of thousands of global companies.

Bloomberg and MSCI webinar: ESG High Yield Indices

Listen to the discussion on performance characteristics of high yield ESG benchmarks, continued growth in responsible investing, and how high yield differs from the investment grade corporate space

Introducing MSCI Climate Change Indexes

The indexes are designed to measure opportunities and risks associated with the transition to a low carbon economy.

Index Profile Search Tool

Search by index name or code to explore ESG metrics for all EU-regulated MSCI indexes.

Bloomberg and MSCI webinar: ESG High Yield Indices

Listen to the discussion on performance characteristics of high yield ESG benchmarks, continued growth in responsible investing, and how high yield differs from the investment grade corporate space

Introducing MSCI Climate Change Indexes

The indexes are designed to measure opportunities and risks associated with the transition to a low carbon economy.

Index Profile Search Tool

Search by index name or code to explore ESG metrics for all EU-regulated MSCI indexes.

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Source: MSCI Inc. as of March 2020

AUM tracking or benchmarked to MSCI ESG indexes

Through our legacy companies KLD, Innovest, IRRC, and GMI Ratings

4 7 Source: MSCI ESG Research as of as of June 2020, coverage subject to change

MSCI ESG Indexes and MSCI Analytics utilize information from, but are not provided by, MSCI ESG Research LLC. MSCI Indexes are products of MSCI Inc. and are administered by MSCI Limited.

Origins of MSCI ESG Ratings established in 1999. Produced time series data since 2007.

Source: MSCI ESG Research 2,434 constituents of the MSCI ACWI Index as of November 30, 2017.

Through our legacy companies KLD, Innovest, IRRC, and GMI Ratings. Origins of MSCI ESG Ratings established in 1999. Produced time series data since 2007.

9 According to KLD 2008. The MSCI KLD 400 Social Index was launched on May 01, 1990

10  MSCI KLD 400 Social Index factsheet https://www.msci.com/documents/10199/904492e6-527e-4d64-9904-c710bf1533c6

11 MSCI press release: https://www.msci.com/documents/10199/447d3ba7-e215-45c9-8b14-74031a80f4bc

12 MSCI press release: https://www.msci.com/documents/10199/0663a2c2-5919-8385-3bf9-7581c40905f9

 

Sources for Timeline:

1https://ir.msci.com/static-files/5956fe36-a5ea-437f-9323-28a7c897b106

2https://www.csrwire.com/press_releases/23136-KLD-Launches-Global-Sustainability-Index-GSI-

3https://ir.msci.com/static-files/15e6a432-4c0a-424a-ae5c-e79490273e90

4https://www.msci.com/documents/10199/248121/Barclays_MSCI_ESG_Fixed_Income_Indices_-_FINAL.pdf/e70bf030-1373-40ad-a725-05bf9005fea8?version=1.0

5https://ir.msci.com/static-files/b2c28e7c-c5ac-43db-8569-5878ff44b81e

6https://www.msci.com/www/blog-posts/msci-introduces-esg-quality/0308840040

7https://ir.msci.com/news-releases/news-release-details/msci-strengthen-climate-risk-capability-acquisition-carbon-delta

8https://www.bloomberg.com/press-releases/2020-02-11/bloomberg-and-msci-expand-esg-fixed-income-index-suite-launch-new-esg-high-yield-indices