A BENCHMARK TO INCORPORATE SUSTAINABLE IMPACT IN YOUR INVESTMENT PROCESS
MSCI ESG Research is introducing tools and data designed to help institutional investors measure their alignment with the Sustainable Development Goals (SDGs) adopted by the United Nations. MSCI ESG Research grouped the 17 SDGs into five actionable themes: basic needs, empowerment, climate change, natural capital and governance.
The MSCI ACWI Sustainable Impact Index aims to identify companies that derive at least 50% of their revenues from products and services that address environmental and social challenges as defined by the themes outlined above. The index, which excludes companies that fail to meet minimum environmental, social and governance (ESG) standards, weights securities by the percentage of revenue derived from products or services that address the themes.
Based on MSCI ESG Sustainable Impact Metrics, using index constituents and weights as of March 2016, the MSCI ACWI Sustainable Impact Index had 71% greater exposure to estimated company revenue derived from sustainable impact solutions compared to the parent, MSCI ACWI Index.
Estimated Constituent Annual Revenues derived from Sustainable Impact Themes