MSCI Climate Change Indexes Suite
MSCI Climate Indexes Suite
MSCI offers a range of indexes for investors who seek to incorporate climate risks and opportunities into their investment process:
- Mitigate Risk: reduce exposure to long-term climate risks and stranded assets
- Capture Disruptive Opportunities: increase exposure to companies providing climate-friendly technologies and transformative solutions i.e. reward progress
- Promote Stewardship shift behavior of companies to improve operations, develop long term strategies and be transparent on progress i.e. incentives on better climate risk management
Three categories of climate change indexes
MSCI’s suite of climate indexes can be grouped into three categories:
MSCI Climate Change Indexes: The indexes are designed to enable investors to holistically integrate climate risk considerations in their global equity investment process, while increasing diversification through a simple, rules-based reweighting methodology.
The Global Climate Indexes utilize MSCI ESG Low Carbon Transition Score.
KEY POINTS OF MSCI CLIMATE CHANGE INDEXES:
MSCI Low Carbon Indexes: Launched in 2014, they are the first index series designed to address two dimensions of carbon risks: long term risk by reducing the index’s exposure to not only carbon emissions but also fossil fuel reserves and short-term risk by aiming to have a low tracking error compared to the parent index.
MSCI Global Environmental Indexes: Launched in 2010, the Global Environmental indexes are designed to maximize exposure to clean technologies. They include companies that generate 50% or more revenues from products and services that contribute to a more environmentally sustainable economy.
The index stock selection process utilizes MSCI ESG Sustainable Impact Metrics
MSCI ACWI Climate Change Index
MSCI World Climate Change Index
MSCI EM Climate Change Index
MSCI Europe Climate Change Index
MSCI AC Asia Pacific Climate Change Index
MSCI USA Climate Change Index
MSCI Japan Climate Change Index