Climate Action Indexes - Intro

We offer expanded solutions to help you meet your net-zero commitments and integrate climate considerations into global equity portfolios. The MSCI Climate Action Indexes are designed to help institutional investors seeking to invest for the transition and finance companies’ emissions reduction to contribute change in the real economy.

Financial and investment firms can provide essential support and capital to companies, technologies and business models decarbonizing the global economy. The range of global equity indexes includes companies in each sector taking concrete steps to reduce their carbon emissions and reimagine their businesses for a net-zero world.

Building a framework for financing the net-zero journey

The indexes are intended to serve as a consistent framework for reducing carbon emissions by identifying companies that are comparatively more prepared to lead their sector’s low-carbon transition than their peers.

We select the top 50% of companies in each GICS®1 sector based on an assessment of their readiness, 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

MSCI Climate Action Indexes

  • Balanced sector weights

  • Forward looking view

  • Broad market coverage

  • Increased weight toward companies with SBTi2

  • Includes companies navigating energy transition

  • Maintains overall characteristics of the MSCI ACWI Index covering global equities while selecting companies on basis of climate characteristics

Climate Action Indexes - video

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What are MSCI Climate Action Indexes?

A new range of indexes that leverage sector-level insights to help you meet net-zero goals.

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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, we hope to facilitate climate engagement. The indexes are 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

Accommodating diverse 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.

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. Contribute 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 and physical climate risks, increase exposure to climate solutions, and 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.