Sustainability and Climate Integration in Fixed-Income Portfolios: Part I
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BarraOne® · MSCI Fixed Income Indexes · MSCI Energy Transition Framework
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Sustainability- and climate-related risks and opportunities can materially affect risk and return in fixed-income portfolios — through credit spreads, market volatility, event risk and other channels.
This is Part 1 of a two-part guide (to be read together with Part 2: Application) and provides a theoretical framework for integrating MSCI data and products for fixed-income investors.
It walks through each stage of the investment process — from defining objectives and selecting benchmarks, through portfolio construction and risk management, to bondholder engagement and reporting — and maps specific MSCI tools to be utilized at each stage (see the Appendix for the full list of MSCI data, methodologies and products referenced in this guide).
Data as of April 30, 2026. Note that the use of benchmarks may look different across organizations. Investors may prefer using broad-market indexes to measure tracking error, performance and carbon footprint against the full market, while using sustainability or climate indexes for mandate definition and top-down application of sustainability and climate standards.
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