Climate Action Indexes - Intro

Financial and investment firms can provide essential support and capital to the companies, technologies and business models that will help decarbonize the global economy. The MSCI Climate Action Indexes expand MSCI's climate indexes range, offering investors a broader choice of solutions to help them meet their net-zero commitments and integrate climate considerations in global equity portfolios. The indexes are designed to help institutional investors seeking to invest for the transition and finance the emission reduction of companies in order to drive change in the real economy. The MSCI Climate Action Indexes use a new assessment of a company’s net-zero target setting and climate risk management to select the top half companies in each GICS®1 sector.

The Indexes include companies in every sector that are taking concrete steps to reduce their carbon emissions and reimagine their businesses for a net-zero world. This range of global equity indexes is designed for institutional investors who seek a consistent framework for reducing carbon emissions by backing companies based on their readiness to lead the low-carbon transition compared with peers.

A framework for financing the low-carbon transition

The MSCI Climate Action Indexes select the top 50% companies in each GICS® sector based on an assessment of their readiness to lead the sector’s low-carbon transition, as indicated by:


Climate Action Indexes - pie chart

The pie chart shows the four main indicators that the methodology looks at to assess companies’ climate transition risk and mitigation plans. The two main ones, displayed on the top left and right side, are the Company Emission intensity, including scopes 1, 2 and 3, and if the company has Science Based approved targets or a credible track record. On the bottom left and right side are the other two indicators, which are slightly smaller than the top indicators. These are how the company is managing climate risks and if the company is active in green products or services. At the center of the pie chart, it states that the Climate Action Indexes select the top half companies in each GICs sector.

*The MSCI Climate Action Indexes select 50% of companies by count, not by market cap.


Climate Action Indexes

Key features of the MSCI Climate Action Indexes

  • Balanced sector weights

  • Forward looking view

  • Broad market coverage

  • Increased weight towards companies with SBTi2

  • Includes companies navigating the energy transition

  • Maintains overall characteristics of ACWI while selecting companies on the basis of climate characteristics


Climate Action Indexes - video

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What are the MSCI Climate Action Indexes?

Learn how this new range of climate indexes supports investors who want to invest for the transition and finance the emission reduction of companies in order to drive change in the real economy.

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Climate Action Indexes - Built for engagement

Built for engagement from the ground up

By identifying companies with the willingness to lead their sector’s low-carbon transition based on both current and forward-looking indicators, the MSCI Climate Action Indexes facilitate climate engagement. The index is designed to support investors who believe that shareholder dialogue with targeted companies can improve sustainable value creation and support net-zero business strategies.

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Climate Action Indexes - factsheets

Our range of indexes


Climate Action Indexes - climate indexes to accomomdate

Climate Indexes to accommodate client preferences

MSCI has a range of climate indexes to help clients address financial risks and opportunities, incentivize companies to change their business models and steer capital toward green-technology companies. Our offering is designed to support the various approaches to climate investing.


Climate Action Indexes - What is your preferred

What is your preferred approach to climate?

  1. Reduce emissions

    MSCI Low Carbon Target Indexes aim to minimize carbon intensity while controlling tracking error

  2. Drive the transition

    MSCI Climate Action Indexes include 50% of companies best prepared for the transition relative to sector peers

  3. Align

    MSCI Climate Paris Aligned Indexes aim to minimize transition & physical climate risks, increase exposure to climate solutions, align with 1.5°C

MSCI’s Climate Action Indexes are designed to help investors decarbonize their portfolios through the emission reduction efforts taken by companies in every sector. The MSCI Climate Paris Aligned Index, by comparison, is designed to decarbonize at a rate of 10% annually. The MSCI Low Carbon Target Indexes are designed to reduce emissions while closely tracking the market.

Explore MSCI Climate Indexes


Climate Action Indexes

Climate Action Indexes - footnotes

1GICS® is the global industry classification standard jointly developed by MSCI and S&P Global Market Intelligence.

2Science Based Targets initiative.