Climate Paris Aligned Hero Image
Climate Paris Aligned Indexes
— for Net-Zero Strategies
Climate Paris Aligned Indexes Intro copy Duplicate 1
The MSCI Climate Paris Aligned Indexes are designed to help investors implement net-zero strategies in their portfolios.
How can MSCI Climate Paris Aligned Indexes support a net-zero strategy?
How can MSCI Climate Paris Aligned Indexes support a net-zero strategy?
MSCI has developed a series of indexes to help investors make net-zero part of decision-making at every stage.
The MSCI Climate Paris Aligned Indexes are designed to help investors seeking to implement net-zero strategies in their portfolios. The indexes aim to address climate change in a holistic way to reduce minimize their exposure to physical and transition risks of climate change and increase target exposure to sustainable investment opportunities. The indexes are aligned with a 1.5°C temperature-rise scenario and incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) as well as the minimum requirements for the EU Paris Aligned Benchmark.
Why MSCI Climate Paris Aligned Indexes?
Why MSCI Climate Paris Aligned Indexes?
- Use of state-of-the-art MSCI Climate analytics data, models including forward looking metrics
- Supports a net-zero strategy by aligning with a 1.5°C scenario
- Designed for customization. Can be combined with MSCI’s ESG, Sustainable Impact, Factor and Thematic data Indexes and data sets
- Designed towards EU Paris Aligned Benchmarks (PAB) minimum requirements
- MSCI EU PAB Overlay Index methodology available for market cap, factor or ESG indexes -- for investors who are looking for a strict application of the EU regulatory minimum requirements
- Aims to be fully aligned with the TCFD recommendations by accounting for the portfolio’s exposure to physical and transition risk, as well as increased exposure to climate opportunities
The MSCI Climate Paris Aligned Indexes aim to meet and exceed- table
The MSCI Climate Paris Aligned Indexes aim to meet and exceed the minimum standards of the EU Paris Aligned Benchmarks (PAB) label:
ESG | TRANSITION RISK | GREEN OPPORTUNITY | 1.5°C ALIGNMENT | PHYSICAL RISK | |
---|---|---|---|---|---|
Controversial Weapons | Carbon intensity reduction (Scope 1, 2 and 3) | Neutral exposure to high impact sector | At least double the Green Revenue exposure | Self-decarbonization at 10% | Physical Risk Climate VaR is at least 50% lower |
Societal norms violators | Immediate Scope 3 phase-in | Higher allocation to companies with credible emission reduction targets | Green/fossil fuel-based ratio – 4x higher than parent | Neutral Aggregate Climate VaR under 1.5°C Scenario | |
MSCI ESG Controversy Score | Underweight companies facing transition risk | Significant improvement in Low Carbon Transition (LCT) Score | Overweighting of companies providing solutions | ||
Lower fossil fuel exposure | 50% minimum reduction in Potential Emissions Intensity |
ESG | |||||||
---|---|---|---|---|---|---|---|
Controversial Weapons | Societal norms violators | MSCI ESG Controversy Score | |||||
TRANSITION RISK | |||||||
Carbon intensity reduction (Scope 1, 2 and 3) | Neutral exposure to high impact sector | Immediate Scope 3 phase-in | Higher allocation to companies with credible emission reduction targets | Underweight companies facing transition risk | Significant improvement in Low Carbon Transition (LCT) Score | Lower fossil fuel exposure | 50% minimum reduction in Potential Emissions Intensity |
GREEN OPPORTUNITY | |||||||
At least double the Green Revenue exposure | Green/fossil fuel-based ratio – 4x higher than parent | Overweighting of companies providing solutions | |||||
1.5°C ALIGNMENT | |||||||
Self-decarbonization at 10% | Neutral Aggregate Climate VaR under 1.5°C Scenario | ||||||
PHYSCAL RISK | |||||||
Physical Risk Climate VaR is at least 50% lower |

To view the full methodology, please click here.
Want to get in touch to find out more?
Talk to our team of climate specialists to learn more about Climate Indexes and our series of Climate and Net-Zero Solutions or to discuss your own Climate objectives.
Available Indexes
MSCI Climate Paris Aligned Indexes
Equity Methodology
Factsheets
- 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)
Fixed Income Methodology
Factsheets
Climate Paris Related cards Duplicate 2
Related Content
Understanding MSCI Climate Indexes
Integrating climate considerations into an investor’s set of benchmarks is one way to build a consistent framework for integrating climate risk across an entire portfolio.
Access ReportClimate and Net-Zero Solutions
To empower investors to analyze and report on their portfolios’ exposures to transition and physical climate risk.
Explore MoreThe Net-Zero Knowledge Hub
A guide to aligning investment portfolios with global temperature targets.
Learn MoreMSCI Joins the Net Zero Financial Service Providers Alliance
We are committed to aligning all relevant services and products with the goal of net zero emissions by 2050 or sooner.
Read More