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MSCI Climate Indexes
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MSCI Climate Indexes - intro
Analysis by the MSCI Climate Risk Center has shown the increasingly significant threat climate change poses to the long-term resilience of investment portfolios1. Our aim is to equip investors with the tools to benchmark, measure and manage exposure to climate risk and identify sustainable investment opportunities.
Climate indexes that address your climate objectives
MSCI offers climate indexes for both equity & fixed Income that aim to meet the variety of needs of institutional investors who wish to address climate change. The MSCI Climate Indexes can help institutional investors integrate climate considerations in portfolio construction, mitigate climate risks, capture opportunities or align with the goals of the Paris Agreement.
MSCI Climate Indexes - table
| Key features | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Objectives | MSCI Index | Are GHG emissions used in the index? | Are there business activity and UNGC screens? | How does the index address climate reputational risk? | Are emission reduction targets used? | Is climate risk management taken into account? | Does the index reward green business? | Does the index meet EU PAB/CTB standards? | Index constituent weighting |
| Reduce emissions | Ex Fossil Fuel | Removes companies with fossil fuel reserves | Market cap | ||||||
| Low Carbon Target* | Scope 1 & 2 | Target outcomes | |||||||
| Drive the transition | Climate Action | Scope 1,2 & 3 | Yes | SBTi, credible track record | Yes | Yes | Market cap | ||
| Align | Climate Change | Scope 1,2 & 3 | Yes | Thermal coal | Captured in the LCT score | Captured in the LCT score | Yes | CTB | Wheight tilt |
| Climate Paris Aligned | Scope 1,2 & 3 | Yes | Oil & gas, power generation, thermal coal | targets and track record | captured in the LCT score | Yes | PAB | Target outcomes | |
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MSCI Climate Indexes - what sets
What sets MSCI Climate Indexes apart?
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State of the Art Climate Analytics
MSCI Climate Indexes utilize MSCI Climate Risk Center’s expertise.
MSCI Climate indexes leverage advanced climate analytics including Climate Value-at-Risk, Low Carbon Transition Score, Scope 3 emission estimates and companies’ targets.
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Multi Asset and Customization Options
MSCI offers Climate Indexes for both Equity & Fixed Income.
MSCI Climate Indexes can be used as a standalone index or as an overlay to an ESG strategy. They can also include various customizations.
Parallel Benchmarking: One Portfolio, Dual Perspectives - Video
Parallel Benchmarking: One Portfolio, Dual Perspectives
Broad market-cap weighted indexes might not fully assess climate-objective alignment. We believe that an appropriate parallel benchmark could help illustrate this alignment, improve transparency and allow investors to make more informed decisions.
MSCI Climate Indexes - contact us
Contact us to learn more
Contact our Client Service team to learn more about our climate indexes or to discuss your own climate objectives.
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MSCI Climate Index
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Understanding MSCI Climate Indexes
In this Product Insight, we discuss MSCI climate indexes available to investors.
Download PDF(PDF, 1,265 KB) (opens in a new tab)
The Role of Capital in the Net-Zero Revolution
Our call to action for capital market participants to drive the systemic transformation needed to avert a climate catastrophe.
Learn moreNet-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.
Read 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.
Learn moreParallel Benchmarking: One Portfolio, Dual Perspectives
Broad market-cap weighted indexes might not fully assess climate-objective alignment. We believe that an appropriate parallel benchmark could help illustrate this alignment, improve transparency and allow investors to make more informed decisions.
Read moreMSCI Climate Index - footnotes
*The MSCI Low Carbon Target index methodology will incorporate Scope 3 and other changes effective December 1, 2022. A separate index series will continue to exist with the current methodology.
1https://www.msci.com/our-solutions/esg-investing/climate-solutions
MSCI ESG Ratings, Carbon Data, Low Carbon Transition Score Climate VaR and research provided by MSCI ESG Research LLC. MSCI ESG Indexes utilize information from, but are not provided by, MSCI ESG Research LLC. MSCI Equity Indexes are products of MSCI Inc. and are administered by MSCI UK Limited.