Intro - Climate Paris Aligned
Climate change can pose profound risk to portfolio companies — and create vast opportunities for institutional investors. Our Climate Paris Aligned Indexes are designed to help investors seeking to build resilient portfolios aligned with limiting global temperature rise to 1.5°C of the Paris Agreement as they transition to a net-zero economy.
Contact - Climate Paris Aligned
Integrating - Climate Paris Aligned
Integrating your climate strategy
The Paris Agreement, a legally binding international treaty, gave the world a collective mission: Limit the rise in average temperatures to well below 2°C, but preferably to no more than 1.5°C, above preindustrial levels to prevent the worst effects of climate change.
Our indexes are designed to provide investors with the tools to align their objectives with this goal. They also aim to identify financial risks, such as exposure to stranded assets resulting from divestment, and novel investment opportunities that arise from the transition to a net-zero economy, such as access to new markets with potential to spur growth.
The MSCI Climate Paris Aligned Indexes are designed to:
- Help implement net-zero strategies while maintaining broad market exposure
- Incorporate recommendations of Task Force on Climate-related Financial Disclosures
- Meet requirements of EU Paris Aligned Benchmark
Why - Climate Paris Aligned
Why MSCI Climate Paris Aligned Indexes?
- Rely on advanced climate analytics data and models, including forward-looking metrics designed to show temperature alignment of investments with global temperature goals
- Built for customization; can be combined with MSCI’s ESG, Sustainable Impact, Factor and Thematic data indexes and sets
- MSCI EU PAB Overlay Indexes available for investors looking for a strict application of EU regulatory minimum requirements
MSCI Climate Paris Aligned Indexes can be used as:
- Basis for index-based strategies such as mutual funds, exchange-traded funds, derivatives and structured products
- Reference or policy benchmarks to support net-zero strategies
- Climate performance benchmarks for actively managed climate-aligned portfolios
We use an array of advanced, proprietary tools to construct our indexes
Model built to provide a forward-looking and return-based valuation assessment to measure climate-related risks and opportunities in portfolios
Low Carbon Transition Score
Measure of a company’s exposure to climate transition risks and opportunities reached by aggregating measures of Scope 1, 2 and 3 emissions, avoided emissions and climate management quality
Barra® Open Optimizer
Flexible optimization library used to reduce risk during core portfolio construction while aiming to control for turnover and minimize tracking error
A snapshot of our indexes
MSCI Climate Paris Aligned Indexes
- MSCI World Climate Paris Aligned Index (USD)
- MSCI ACWI Climate Paris Aligned Index (USD)
- MSCI USA Climate Paris Aligned Index (USD)
- MSCI Europe Climate Paris Aligned Index (EUR)
- MSCI Japan Climate Paris Aligned Index (USD)
- MSCI EMU Climate Paris Aligned Index (EUR)
- MSCI EM Climate Paris Aligned Index (USD)
- MSCI World ex USA Climate Paris Aligned Index (USD)
- MSCI EAFE Climate Paris Aligned Index (USD)
Featured content - Climate Paris Aligned
Aligning Portfolios with the Paris Agreement
The pressure on institutional investors to act on climate change and demonstrate its influence on their decision-making and portfolio construction continues to grow. Increasingly, the focus is on the alignment of client investment strategies with the decarbonization.