Factor ESG Target Indexes

MSCI Factor ESG Target Indexes are designed to represent the performance of a strategy that seeks to systematically integrate ESG considerations into factor investing. They aim to be more “ESG aware” to support institutional investors seeking to incorporate those ESG considerations into their factor investing-based portfolios.

Target benefits
Integrating ESG across the investment process

Incorporate ESG with “one-step” approach

Indexes represent performance of a strategy that seeks to simultaneously combine factor and ESG norms with transparency.

Apply robust methodology

Indexes aim to achieve lowest risk while improving the ESG score relative to underlying parent index.

Choose index for your strategy

Designed for scalability across regions and countries, and for both single- and multiple-factor strategy use.

Building indexes that are more “ESG aware”

Our indexes, which seek higher exposure to target factors while improving ESG scores, increase the weighting of stocks in the upper-right quadrant below.

Related to Factor ESG Target Indexes

Factoring in ESG

How can ESG help explain overall portfolio risk and return?

ESG Ratings

Identify industry leaders and laggards by measuring company management of ESG risks and opportunities.