MSCI Eurozone Social Select 30 Index

What is MSCI Eurozone Social Select 30 Index?

The MSCI Eurozone Social Select 30 Index (the ‘Index’) aims to represent the performance of a set of 30 companies from the European Economic and Monetary Union region which have robust Social Pillar Score.

The Index is constructed from MSCI EMU index, by selecting the largest securities by market capitalization and then filtering by a range of MSCI ESG Research’s screens, including ESG controversy scores, governance pillar score, percentage of women on board and business involvement criteria including SDG net alignment.

The index aims to provide focused exposure to stocks with the highest Social Pillar Score by selecting top 30 securities with highest Social Pillar Score from the remaining names, ensuring at least one security from each Global Industry Classification Standard (GICS®)1 Sector is selected. The index is market-capitalization weighted with 5% security cap.

Download methodology (PDF, 326 KB) (opens in a new tab)

MSCI Eurozone Social Select 30 Decrement 5% Index
Performance | Factsheet (PDF, 123 KB) (opens in a new tab)

MSCI Eurozone Social Select 30
Performance | Factsheet (Price/EUR) (PDF, 132 KB) (opens in a new tab) | (Net/EUR) (PDF, 132 KB) (opens in a new tab)

Why MSCI Eurozone Social Select 30 Index?

The MSCI Eurozone Social Select 30 Index uses MSCI’s robust ESG Research, including SDG alignment scores and assessments from MSCI Impact Solutions framework and MSCI Social Pillar Score from MSCI ESG Ratings.

MSCI ESG Ratings uses a rules-based methodology designed to measure a company’s resilience to long-term, industry material environmental, social and governance (ESG) risks. Leveraging Artificial Intelligence (AI), machine learning and natural language processing augmented with our 200+ strong team of analysts, we research and rate companies on a ‘AAA‘ to ‘CCC’ scale according to their exposure to industry-material ESG risks and their ability to manage those risks relative to peers. We have over 40 years of experience collecting, cleaning, standardizing and modelling ESG data from thousands of sources to create a precision tool for a clear signal of ESG performance.

MSCI Social Pillar Score is based on key issues in Human Capital, Product Liability, Stakeholder Opposition and Social Opportunities.

Our SDG Alignment Framework is designed to assess a holistic view of companies’ net contribution – both positive and negative – towards each of the 17 UN Sustainable Development Goals (SDGs). SDG Alignment assessments and scores include analysis of companies’ operations, products and services, policies, and practices and their net contribution – positive and adverse – to addressing key global challenges.

Focus on SDG alignment:

SDGs taken into account to Social Focus of the index are:

1. No Poverty
2. Zero Hunger
3. Good Health and Well-Being
4. Quality Education
5. Gender Equality
8. Decent Work and Economic Growth
10. Reduced Inequalities
16. Peace and Justice, Strong Institutions

Our framework to assess SDG alignment has been built following “Institutional Investing for the SDGs,” our 2018 joint discussion paper with the OECD, an international organization that works to shape policies that foster prosperity, equality, opportunity and well-being for all. We have also engaged and used extensive input from our global client base. The MSCI SDG Alignment framework is built on an understanding that companies may contribute to the goals in a variety of ways, both positive and negative, through their operations and the products and services they provide. We leverage publicly available information, rather than solely relying on companies’ self declared alignment with the goals.

Focus on Social Pillar:

The Social pillar of sustainable investing centers around how a company can manage its relationship with its workforce and the society in which it operates. MSCI ESG Research scores companies on their social aspects based on several key social issues that are most relevant to them.

An investment hypothesis is that a company’s strength and weakness in dealing with social challenges and opportunities can impact its profitability .

MSCI Eurozone Social Select 30 Index offerings

MSCI has developed two versions of the index- a standard and a 5% decrement. The decrement index has been constructed by deducting a fixed percentage from the net total return of the MSCI Eurozone Social Select 30 Index on a daily basis.