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MSCI ESG Leaders Indexes
MSCI ESG Leaders Indexes
The MSCI ESG Leaders Indexes are designed to represent the performance of companies that have high Environmental, Social and Governance (“ESG”) ratings relative to their sector peers. The indexes target a 50% sector representation vs. the parent index, aiming to include companies with the highest MSCI ESG Ratings in each sector. The index suite utilizes MSCI’s award winning ESG Research and ESG Ratings to identify companies that have demonstrated an ability to manage their ESG risks and opportunities and are therefore eligible for inclusion.
The indexes are designed for institutional investors seeking exposure to companies with a strong sustainability profile and with relatively low tracking error to the underlying equity market.
KEY POINTS:
- The indexes select companies that have high ESG ratings relative to their peers in each sector of the parent index
- Designed to exclude companies involved in severe controversies
- Based on industry leading MSCI indexes and are designed to enable for seamless integration
- ESG Leaders Indexes, as with all MSCI ESG indexes, leverage MSCI’s award winning MSCI ESG Research and ESG Ratings
AVAILABLE INDEXES
Key index flagships include:
- MSCI China ESG Leaders 10-40 Index - Performance | Factsheet
- MSCI ACWI ESG Leaders Index – Performance | Factsheet
- MSCI ACWI ex USA ESG Leaders Index - Performance | Factsheet
- MSCI World ESG Leaders Index - Performance | Factsheet
- MSCI EAFE ESG Leaders Index - Performance | Factsheet
- MSCI Emerging Markets ESG Leaders Index - Performance | Factsheet
- MSCI Europe ESG Leaders Index- Performance | Factsheet
- MSCI USA Small Cap ESG Leaders Index - Performance | Factsheet
- MSCI USA ESG Leaders Index - Performance | Factsheet
- MSCI USA Extended ESG Leaders Index - Performance | Factsheet
- MSCI EM Extended ESG Leaders 5% Issuer Capped Index - Performance | Factsheet
- MSCI Japan ESG Select Leaders Index - Factsheet
- ESG Fixed Income Indexes
- MSCI USD HY ESG Leaders Corporate Bond Index - Factsheet
- MSCI USD IG ESG Leaders Corporate Bond Index - Factsheet | Methodology
- MSCI EUR HY ESG Leaders Corporate Bond Index - Factsheet
- MSCI EUR IG ESG Leaders Corporate Bond Index - Factsheet
APPLICATIONS
MSCI’s global equity indexes can be used to support:
- Asset allocation: Consistent, complete representation that captures the full spectrum of the global equity opportunity set without home bias.
- Performance measurement and attribution: An industry-leading benchmark suite for global mandates, with regional, country, sector and other subsets available for more targeted investment mandates.
- Research: A trusted source for global equity markets and underlying security-level data for sell-side research.
- Investment product development: May be licensed for use as the basis for structured products and other index-linked investment vehicles, such as ETFs and ETNs.
MSCI research & ratings
MSCI research & ratings
MSCI ESG Research and Ratings are used in the construction of the MSCI ESG indexes.
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Foundation of ESG investing - part 2
Foundation of ESG investing - part 2
Can ESG indexes be used as benchmarks, both for the total portfolio and individual allocations? We test whether two such ESG indexes can be used for these purposes, using the MSCI ESG Leaders Index and the MSCI ESG Universal Index.