MSCI low carbon indexes
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Global Low Carbon Target
MSCI Low Carbon Indexes
The MSCI Low Carbon Indexes are intended to help identify potential risks associated with the transition to a low carbon economy while representing the performance of the broad equity market - the first indexes designed to address two dimensions of carbon exposure: carbon emissions and fossil fuel reserves.
The MSCI Global Low Carbon Target Indexes are part of this family. They aim to reflect a lower carbon exposure than that of the broad market by overweighting companies with low carbon emissions (relative to sales) and those with low potential carbon emissions (per dollar of market capitalization). The indexes are designed to achieve 0.3% (30 basis points) ex ante tracking error target while minimizing the carbon exposure relative to their Parent indexes. The MSCI ACWI Low Carbon Target Index is the first index in the series.
Additional Insights and Research
- MSCI ESG Global Low Carbon Target Indexes Overview
- Reducing a Portfolio’s Carbon Footprint Using the MSCI ACWI Low Carbon Target Index
- Beyond Divestment: Using Low Carbon Indexes
Research Insight | Research Spotlight
- Stranded Assets as Investment Opportunities
- Options for Reducing Fossil Fuel Exposure