Understanding the MSCI Climate Action Indexes
Research Paper
June 12, 2023
Preview
The MSCI Climate Action Indexes include companies that lead their peers in terms of their positioning and actions to manage transition risks. The methodology reflects what we call the "drive the transition" approach of climate investing. It follows a bottom-up approach where company selection and weighting are driven solely by company characteristics and not influenced by any index-level targets.
The methodology strongly incentivizes companies to disclose their emissions and targets, as emission disclosure increases the likelihood that the company will receive favorable assessment through emission-reduction targets and climate-risk management.
Sector weights for the MSCI ACWI vs. the MSCI ACWI Climate Action Index
Data as at April 2023. Source: MSCI
Read the full paper
Read the full paper
Provide your information for instant access to our research papers.
The Futures of Climate Action Is Now
Derivatives linked to climate investing are in the early stages of product innovation and investor adoption. We compared the impact, financial risk and opportunity metrics for futures on the MSCI Climate Action Indexes.
Supporting the Low-Carbon Transition: An Indexed Approach
Investors globally are committing to reduce the carbon footprint of their portfolios to align with the goal of global net-zero emissions by 2050.
MSCI Climate Action Indexes
We offer expanded solutions to help you meet your net-zero commitments and integrate climate considerations into global equity portfolios.
The content of this page is for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to interpret any performance information. Nothing herein is intended to recommend any product, tool or service. For all references to laws, rules or regulations, please note that the information is provided “as is” and does not constitute legal advice or any binding interpretation. Any approach to comply with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority, as needed.