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MSCI ESG SCREENED INDEXES
MSCI ESG Screened Indexes
An off-the-shelf approach to ESG screens
The MSCI ESG screened indexes are designed for institutional investors and aim to exclude companies:
- associated with controversial, civilian, nuclear weapons and tobacco
- that derive revenues from thermal coal and oil sands extraction or
- that are not in compliance with the United Nations Global Compact (UNGC) principles
The indexes incorporate these exclusions while seeking to maintain a profile similar to market cap indexes. The suite of six indexes is available as a standard offering for easier access and implementation.
The exclusions have been selected to span the three pillars of Environmental, Social and Governance (ESG) investing which reflect investors’ most common concerns
Click the letters below to learn more
Interactive Assets
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Thermal Coal
Companies deriving 5% or more revenue from mining or thermal coal or 5% or more revenue from thermal coal based power generation
Oil Sands
Companies deriving 5% or more revenue from oil sands extraction
Tobacco
Companies classified as producers or deriving 5% or more aggregate revenue from production, distribution, retail and supply of tobacco-related products
Controversial Weapons
Companies with ties to cluster bombs, landmines, depleted uranium weapons, chemical and biological weapons, blinding laser weapons, non-detectable fragments, incendiary weapons
Civilian Firearms
Companies classified as producers of firearms and small arms ammunition for civilian market or deriving 5% or more revenue from distribution of firearms and small arms
Nuclear Weapons
Companies connect with nuclear weapons: Manufacturers, providers of components or auxiliary services related to nuclear warheads and missiles; Assemblers of delivery platforms for nuclear weapons
UN Global Compact
Companies that are not in compliance with the United Nations Global Compact principles
ESG Screened Indexes features and benefits
KEY FEATURES
- ESG Screened: to incorporate common exclusions while aiming for a similar profile as market cap indexes
- Easy to Access: available as part of the standard offering in MSCI’s ESG Index Module and Enhanced Module
- Easy to Implement: designed to be easy to use and efficient for investors who seek an off the shelf ESG exclusion index
KEY BENEFITS
- Designed to maintain a broad coverage with similar profile to market cap index
- Targets Zero exposure to Controversial Weapons or Tobacco Producers
- Aims to exclude companies involved in controversial businesses
- Limited exclusions designed to lead to manageable tracking error vs parent index
- Aims to reduce Carbon Footprint
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Available Indexes
Available Indexes
MSCI EMU ESG Screened Index
MSCI USA ESG Screened Index
MSCI Europe ESG Screened Index
MSCI World ESG Screened Index
MSCI Japan ESG Screened Index
MSCI Emerging Markets IMI ESG Screened Index
MSCI EM ESG Screened Index
MSCI EAFE ESG Screened Index
Applications
Applications
The indexes can be used to support:
- Strategic asset allocation: Consistent, broad indexes that aim to represent the performance of the full spectrum of the global equity opportunity set without home bias
- Performance benchmark and attribution: An industry-leading suite for global mandates, with regional, country, sector and other subsets available for more targeted investment mandates
- Research: A leading source for global equity markets and underlying security-level data for sell-side research
Further Reading
Further Reading
- MSCI ESG Controversies Executive Summary Methodology
- Business Involvement Screening Research Methodology Overview
- Product Insight: The MSCI ESG Screened Indexes
- Methodology
- Business Involvement Screening Research
- ESG Controversies
- ESG Ratings
- ESG 101: What is ESG Investing
- ESG Research
- Foundations of ESG Investing – Part 4: Integrating ESG into Factor Strategies and Active Portfolios
- Foundations of ESG Investing – Part 3: Integrating ESG into Passive Institutional Portfolios
- Foundations of ESG Investing – Part 2: Integrating ESG into Benchmarks
- Foundations of ESG Investing – Part 1: How ESG Affects Equity Valuation, Risk and Performance