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MSCI ESG Focus Indexes
MSCI ESG Focus Indexes
The MSCI ESG Focus Indexes are designed to target companies with positive environmental, social and governance (ESG) characteristics while closely representing the risk and return profile of the underlying market. Each index is constructed through an optimization process that aims to maximize its exposure to ESG, subject to a target tracking error and other constraints. The indexes are sector-diversified and are designed to over-weight companies with high MSCI ESG Ratings and under-weight companies with low ratings. Tobacco and Controversial Weapons companies are not eligible for inclusion.
MSCI ESG ENHANCED FOCUS INDEXES
The MSCI ESG Enhanced Focus Indexes aim to maximize their ESG profile and reduce carbon exposure while maintaining risk and return characteristics similar to the underlying parent index.
- Targets 30% reduction in carbon exposure compared with parent index
- Designed to maintain a broad coverage with similar profile to market cap index
- Aims to maximize exposure to companies with strong ESG profiles
- Excludes exposure to Controversial Weapons and Tobacco Producers
MSCI EXTENDED ESG FOCUS INDEXES
The MSCI Extended ESG Focus Indexes exclude tobacco and controversial weapons companies and those with ties to civilian firearms production and retailing.
The Indexes exclude producers of or ties with civilian firearms and all companies classified as a retailer that earn 5% or more in revenue or more than $20 million in revenue, from civilian firearms-related products.
Starting with the Feb 2020 Quarterly Index Review, the MSCI USA Extended ESG Focus Index, MSCI USA Small Cap Extended ESG Focus Index, MSCI EAFE Extended ESG Focus Index and MSCI Emerging Markets Extended ESG Focus Index will also exclude companies with thermal coal and oil sands revenue exposure.
MSCI Emerging Markets Extended ESG Focus Index
MSCI USA Small Cap Extended ESG Focus Index
MSCI USA Extended ESG Focus Index
MSCI EAFE Extended ESG Focus Index
MSCI Canada IMI Extended ESG Focus Index (Gross/CAD)
Fixed Income Indexes
Bloomberg Barclays MSCI Fixed Income Indexes
Bloomberg Barclays MSCI 1-5 year Canadian Aggregate ESG Focus Index
Bloomberg Barclays MSCI Canadian Aggregate ESG Focus Index
Bloomberg Barclays MSCI US 1-5 Year Corporate ESG Focus Index
Bloomberg Barclays MSCI US Corporate ESG Focus Index
Bloomberg Barclays MSCI US Aggregate ESG Focus Index
ADDITIONAL INSIGHTS AND RESEARCH