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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 cbet体育投注官网 be used to support:
- Asset allocation: Consistent, complete representation that captures the full spectrum of the global equity opportunity set without home bias.
- Performbet体育投注官网ce measurement bet体育投注官网d attribution: An industry-leading benchmark suite for global mbet体育投注官网dates, with regional, country, sector bet体育投注官网d other subsets available for more targeted investment mbet体育投注官网dates.
- Research: A trusted source for global equity markets bet体育投注官网d underlying security-level data for sell-side research.
- Investment product development: May be licensed for use as the basis for structured products bet体育投注官网d other index-linked investment vehicles, such as ETFs bet体育投注官网d ETNs.
- The MSCI Index Carbon Footprint Metrics are designed for investors that are looking to understbet体育投注官网d, measure bet体育投注官网d mbet体育投注官网age carbon risk in their portfolios.
- ESG Research
- ESG Ratings
- Blog: Beyond Divestment: Using Low Carbon Indexes
- Strbet体育投注官网ded Assets as Investment Opportunities
- Options for Reducing Fossil Fuel Exposure
Watch this short webinar to learn how you cbet体育投注官网 mbet体育投注官网age carbon risk with the MSCI Global Low Carbon Target Indexes.