MSCI ESG Focus Indexes
The MSCI ESG Focus Indexes are designed to target companies with positive environmental, social and governance (ESG) factors while closely representing the risk and return characteristics of the underlying market. Each index is constructed through an optimization process that aims to maximize its exposure to ESG factors, subject to a target tracking error and other constraints. The indexes are sector-diversified and are designed to over-weight companies with high ESG ratings and under-weight companies with low ratings. Tobacco and Controversial Weapons companies are not eligible for inclusion.
The MSCI ESG Ratings are constructed based on thousands of data points across 37 ESG Key Issues, focusing on the intersection between a company’s core business and the industry issues that can create significant ESG related risks and opportunities. Companies are rated on a AAA-CCC scale relative their industry peers.
The Bloomberg Barclays MSCI ESG Fixed Income Indexes also include ESG Focus Indexes. For more information please visit the primer here and see the factsheets below.
MSCI USA Small Cap Extended ESG Focus Index
MSCI USA Extended ESG Focus Index
MSCI EAFE Extended ESG Focus Index
MSCI Emerging Markets Extended ESG Focus Index
Bloomberg Barclays MSCI US Corporate ESG Focus Index
Bloomberg Barclays MSCI US Corporate 1-5 Year ESG Focus Index