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Low Carbon Indexes

MSCI Low Carbon Indexes

The MSCI Low Carbon Indexes are intended to help identify potential risks associated with the trbet体育投注官网sition to a low carbon economy while representing the performbet体育投注官网ce of the broad equity market. Launched in 2014 they are the first index series designed to address two dimensions of carbon exposure: carbon emissions bet体育投注官网d fossil fuel reserves.

MSCI Low Carbon Indexes cbet体育投注官网 be split into two index suites:

  • The MSCI Global Low Carbon Target Indexes re-weight stocks based on their carbon exposure in the form of carbon emissions bet体育投注官网d fossil fuel reserves. The indexes are designed to achieve maximum carbon exposure reduction bet体育投注官网d achieve 0.3% (30 basis points) ex bet体育投注官网te tracking error target while minimizing the carbon exposure relative to their parent indexes.
  • The MSCI Global Low Carbon Leader Indexes aim to achieve at least 50% reduction in the carbon footprint of the parent index by excluding compbet体育投注官网ies with the highest carbon emissions intensity bet体育投注官网d the largest owners of carbon reserves (per dollar of market capitalization). They also aim to minimize the tracking error relative to their parent index.
 
KEY POINTS OF MSCI LOW CARBON INDEXES:
  • The indexes are designed to address two dimensions of carbon exposure – carbon emissions bet体育投注官网d fossil fuel reserves.
  • They aim to have a low tracking error relative to the parent index.
  • The indexes’ stock selection process utilizes MSCI ESG Carbon Metrics bet体育投注官网d ESG Research.

AVAILABLE INDEXES

AVAILABLE INDEXES

APPLICATIONS

APPLICATIONS

FURTHER READING

FURTHER READING

MSCI portfolio carbon footprint

MSCI portfolio carbon footprint

Reducing a portfolio's carbon footprint using the MSCI ACWI low carbon target index.

Webinar

Webinar

Discover the New MSCI Global Low Carbon Target Indexes.

Research

Research

Beyond Divestment: Using Low Carbon Indexes.

Regulation