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MSCI ESG Focus Indexes
MSCI ESG Focus Indexes
The MSCI ESG Focus Indexes are designed to target companies with positive environmental, social and governance (ESG) characteristics while closely representing the risk and return profile of the underlying market. Each index is constructed through an optimization process that aims to maximize its exposure to ESG, subject to a target tracking error and other constraints. The indexes are sector-diversified and are designed to over-weight companies with high MSCI ESG Ratings and under-weight companies with low ratings. Tobacco and Controversial Weapons companies are not eligible for inclusion.
MSCI ESG Enhanced Focus CTB Indexes
The MSCI ESG Enhanced Focus CTB Indexes are designed to maximize their exposure to positive ESG factors while maintaining risk and return characteristics like those of their respective underlying market capitalization weighted indexes.
Key features and benefits
- Designed to exceed the minimum technical requirements laid out for EU Climate Transition Benchmarks in the EU Delegated Acts.
- Targets 30% reduction in the weighted average greenhouse gas (GHG) intensity
- Targets 7% reduction in the weighted average greenhouse gas (GHG) intensity on an annualized basis
- Targets 30% reduction in the weighted average potential emissions intensity
- Includes equivalent ratio of weighted average “Green Revenues” to weighted average “Fossil Fuels-based Revenues” as that of the underlying investment universe.
- Aims to maximize the weight of companies with credible carbon reduction targets through the weighting scheme
- Designed to be sector-diversified and target companies with high ESG ratings in each sector.
- MSCI World ESG Enhanced Focus CTB Index
- MSCI EM ESG Enhanced Focus CTB Index
- MSCI Europe ESG Enhanced Focus CTB Index
- MSCI EMU ESG Enhanced Focus CTB Index
- MSCI USA ESG Enhanced Focus CTB Index
- MSCI Japan ESG Enhanced Focus CTB Index
- MSCI Pacific ex Japan ESG Enhanced Focus CTB Index
- MSCI World Small Cap ESG Enhanced Focus CTB Index
MSCI EXTENDED ESG FOCUS INDEXES
The MSCI Extended ESG Focus Indexes exclude tobacco and controversial weapons companies and those with ties to civilian firearms production and retailing.
The Indexes exclude producers of or ties with civilian firearms and all companies classified as a retailer that earn 5% or more in revenue or more than $20 million in revenue, from civilian firearms-related products.
Starting with the Feb 2020 Quarterly Index Review, the MSCI USA Extended ESG Focus Index, MSCI USA Small Cap Extended ESG Focus Index, MSCI EAFE Extended ESG Focus Index and MSCI Emerging Markets Extended ESG Focus Index will also exclude companies with thermal coal and oil sands revenue exposure.
MSCI Emerging Markets Extended ESG Focus Index
MSCI USA Small Cap Extended ESG Focus Index
MSCI USA Extended ESG Focus Index
MSCI EAFE Extended ESG Focus Index
MSCI Canada IMI Extended ESG Focus Index (Gross/CAD)
ADDITIONAL INSIGHTS AND RESEARCH