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ESG Phenomenon: MSCI Launches New Climate Indexes

Editorial Staff, 29 October 2020


Developments and commentary in and around the ESG investment space.

MSCI has launched the MSCI Climate Paris Aligned Index Suite, comprising eight new indexes. The firm says that they will help investors align their investments to the 1.5-degree warming scenario set out in the Paris Agreement more effectively. The new indexes will incorporate climate data from MSCI’s existing Climate Value-at-Risk tool, scope 3 emissions data, and green revenues, and also include recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). It is designed to "exceed the minimum standards" of Paris-aligned EU benchmarks, the group said.

“MSCI has been providing investors with low carbon benchmarks for several years. Now, some of these investors are looking to deploy a climate strategy that goes beyond reducing carbon intensity,” Remy Briand, head of ESG at MSCI, said.

The firm has seen rapid adoption of ESG and climate indexes over the past 18 months, with stakeholders agitating to effect change beyond the company and portfolio level. "We designed the indexes to provide a solution for institutional investors looking to do just that,” Diana Tidd, head of Index at MSCI, said.

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