MSCI Launches Climate Indexes to Help Investors Seeking to Align with 1.5°C Paris Climate Pledge

·4 min read

MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, today announced the launch of the MSCI Climate Paris Aligned Index Suite.

The eight new indexes build on MSCI’s existing suite of climate indexes and help investors seeking to tackle climate change holistically by reducing both their transition and physical risks, identify green opportunities, and align their investment strategies with the 1.5-degree warming scenario as targeted by the Paris Agreement.

Combining expertise and insight from MSCI’s Climate Risk Center, the indexes include climate data from MSCI’s Climate Value-at-Risk (Climate VaR) tool, scope 3 emissions data, and green revenues1. The indexes not only incorporate the Task Force on Climate-related Financial Disclosures (TCFD) recommendations but are designed to exceed the minimum standards of the EU Paris Aligned Benchmark designation.

"Climate risks, whether physical or related to the transition to a lower carbon economy, are changing the risk-return profile of companies and industries. Extreme weather events pose new risks to companies’ assets, while carbon-intensive industries are being forced to undergo transformational change," said Remy Briand, Head of ESG at MSCI. "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."

"We have witnessed tremendous interest in ESG and climate indexes over the past 18 months and continue to see fast adoption," said Diana Tidd, Head of Index at MSCI. "As end-investor awareness and stakeholder pressure rises, institutional investors increasingly want to invest to affect more systemic, global change beyond the company or portfolio level. We designed the MSCI Climate Paris Aligned Indexes to provide a solution for institutional investors looking to do just that."

The MSCI Climate Paris Aligned Index Suite forms part of a suite of MSCI climate indexes available for various investor needs, including the MSCI Climate Indexes, MSCI Low Carbon Indexes and the MSCI World Ex-Fossil Fuel Indexes.

For more information, please visit msci.com.

About MSCI Inc.

MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process.

The information contained herein (the "Information") may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI. The Information may not be used to verify or correct other data, to create any derivative works, to create indexes, risk models, or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information or MSCI index or other product or service constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy. Further, none of the Information or any MSCI index is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Information is provided "as is" and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF MSCI INC., ARK INVEST, OR ANY OF THEIR SUBSIDIARIES OR ITS OR THEIR DIRECT OR INDIRECT SUPPLIERS OR ANY THIRD PARTY INVOLVED IN MAKING OR COMPILING THE INFORMATION (EACH, AN "INFORMATION PROVIDER") MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH INFORMATION PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE INFORMATION PROVIDERS HAVE ANY LIABILITY REGARDING ANY OF THE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.

1 MSCI’s Climate Value-at-Risk (Climate VaR) tool, scope 3 emissions data, and green revenues data are produced by MSCI ESG Research LLC. MSCI ESG Indexes utilize information from, but are not provided by, MSCI ESG Research LLC. MSCI Indexes are products of MSCI Inc. and are administered by MSCI Limited (UK).

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