OneTrust Cookie Consent

Navigation

  • Skip to Content
  • Client Log In
  • Investor relations  (opens in a new tab)
  • Sustainability Institute  (opens in a new tab)
  • Subscribe
  • Contact us
  • Careers
  • Region
  • Go back to Main Menu
  • Client Log In
  • MSCI ONE  (opens in a new tab)
  • MSCI Client Support Site
  • Barra PortfolioManager
  • BarraOne  (opens in a new tab)
  • MSCI ESG Manager  (opens in a new tab)
  • MSCI ESG Direct  (opens in a new tab)
  • Global Index Lens
  • MSCI Real Assets Analytics Portal  (opens in a new tab)
  • RiskManager 3  (opens in a new tab)
  • CreditManager  (opens in a new tab)
  • RiskManager 4  (opens in a new tab)
  • Index Monitor  (opens in a new tab)
  • MSCI Datscha  (opens in a new tab)
  • MSCI Real Capital Analytics  (opens in a new tab)
  • Private i  (opens in a new tab)
  • Total Plan/Caissa  (opens in a new tab)
  • MSCI Wealth Manager (Fabric)  (opens in a new tab)
  • MSCI Carbon Markets  (opens in a new tab)
  • Go back to Main Menu
  • Region
  • China
  • India
  • Japan
Navigation

Navigation Menu

  • Our Clients
    • Go back to Main Menu
    • Our Clients
    • Asset Managers
    • Asset Owners
    • Banks
    • Corporates
    • Hedge Funds
    • Insurance Companies
    • Wealth Managers
  • Our Solutions
    • Go back to Main Menu
    • Our Solutions
    • Analytics
      • Go back to Our Solutions
      • Analytics
      • Analytics Overview
      • Risk Management
      • AI Portfolio Insights
      • Multi-asset Class Factor Models
      • Quantitative Investment Solutions
      • Fixed Income Analytics
      • Portfolio Management
      • Crowding Solutions
      • Regulatory Solutions
      • Managed Solutions
    • Climate Investing
      • Go back to Our Solutions
      • Climate Investing
      • Climate Investing Overview
      • Biodiversity
      • Carbon Markets
      • GeoSpatial Asset Intelligence
      • Portfolio Sustainability Insights
      • Real Estate Climate Solutions
    • Sustainable Investing
      • Go back to Our Solutions
      • Sustainable Investing
      • Sustainable Investing Overview
      • ESG Fund Ratings and Climate Search Tool
      • ESG Ratings
      • Impact Solutions
      • Sustainability Reporting Services
      • Sustainability and Climate Regulatory Toolkit
    • Factor Investing
      • Go back to Our Solutions
      • Factor Investing
      • Factor Investing Overview
      • Equity Factor Models
      • FactorLab
      • MSCI FaCS
      • Factor Indexes
    • Fixed Income
      • Go back to Our Solutions
      • Fixed Income
      • Fixed Income Overview
      • Fixed Income Analytics
      • Fixed Income Indexes
    • Private Capital
      • Go back to Our Solutions
      • Private Capital
      • Private Capital Overview
      • Private i
      • Total Plan Manager (formerly Caissa)
      • Emissions Footprinting
      • Private Capital Indexes
      • Private Company Data Connect
    • Real Assets
      • Go back to Our Solutions
      • Real Assets
      • Real Assets Overview
      • INCANS
      • Index Intel
      • Portfolio Services
      • Property Intel
      • Private Real Assets Indexes
      • Real Capital Analytics
    • Wealth Management
  • Indexes
    • Go back to Main Menu
    • Indexes
    • Indexes Overview
    • By Category
      • Go back to Indexes
      • By Category
      • By Category Overview
      • Climate
      • Market Cap
      • Fixed Income
      • Client-Designed
      • Sustainability
      • Factor
      • Thematic
      • Private Real Assets
      • Private Capital
    • Tools
      • Go back to Indexes
      • Tools
      • Tools Overview
      • Index Monitor
      • MSCI Index API
      • MSCI IndexMetrics®
      • Index Data Modules
      • Equity Index Constituents
      • Fixed Income Index Constituents
      • Index Profile Tool
      • Direct Indexing
    • Resources
      • Go back to Indexes
      • Resources
      • Resources Overview
      • Communications
      • Education
      • Equity Factsheets
      • Derivatives
      • Methodology
      • Performance
      • Regulation
  • Research & Insights
    • Go back to Main Menu
    • Research & Insights
    • Research & Insights
      • Go back to Research & Insights
      • Research & Insights
      • Research & Insights Overview
      • Carbon Markets
      • Climate
      • Equities
      • Factor Investing
      • Fixed Income
      • Multi-Asset Class
      • Private Capital
      • Real Estate
      • Sustainability
    • Events
      • Go back to Research & Insights
      • Events
      • Events Overview
      • On Demand
  • Discover MSCI
    • Go back to Main Menu
    • Discover MSCI
    • About Us
    • Technology
      • Go back to Discover MSCI
      • Technology
      • Technology Overview
      • Data Explorer
      • Developer Community
      • Technology and Data
    • Corporate Responsibility
      • Go back to Discover MSCI
      • Corporate Responsibility
      • Corporate Responsibility Overview
      • Enabling Sustainable Investing
      • Environmental Sustainability
      • Governance Practices
      • Social Practices
      • Sustainability Reports and Policies
    • Inclusion & Belonging
    • Media Room
    • Our Leadership
    • Recognition
  • Client Log In
  • Investor relations  (opens in a new tab)
  • Sustainability Institute  (opens in a new tab)
  • Subscribe
  • Contact us
  • Careers
  • Region
  • Go back to Main Menu
  • Client Log In
  • MSCI ONE  (opens in a new tab)
  • MSCI Client Support Site
  • Barra PortfolioManager
  • BarraOne  (opens in a new tab)
  • MSCI ESG Manager  (opens in a new tab)
  • MSCI ESG Direct  (opens in a new tab)
  • Global Index Lens
  • MSCI Real Assets Analytics Portal  (opens in a new tab)
  • RiskManager 3  (opens in a new tab)
  • CreditManager  (opens in a new tab)
  • RiskManager 4  (opens in a new tab)
  • Index Monitor  (opens in a new tab)
  • MSCI Datscha  (opens in a new tab)
  • MSCI Real Capital Analytics  (opens in a new tab)
  • Private i  (opens in a new tab)
  • Total Plan/Caissa  (opens in a new tab)
  • MSCI Wealth Manager (Fabric)  (opens in a new tab)
  • MSCI Carbon Markets  (opens in a new tab)
  • Go back to Main Menu
  • Region
  • China
  • India
  • Japan

Main Search

Popular searches:
ACWI (opens in a new tab) Research (opens in a new tab) ESG (opens in a new tab) Factor Investment (opens in a new tab) Insights Gallery (opens in a new tab) Asset Owners (opens in a new tab)
Might interest you:
Powering Better Portfolios through Technology and Data
MSCI offers clients mission-critical data and technology capabilities focused on quality, reliability, and scale. To power the next wave of growth,...
ESG Ratings
MSCI ESG Ratings provides insights into ESG risks and opportunities within multi-asset class portfolios.
Research
MSCI has applied pioneering ideas to real-world investment challenges for more than four decades.
Staying on Course for Climate Targets

Extended Viewer

 

Staying on Course for Climate Targets

 

July 17, 2024

Edward White

Having a detailed understanding of a portfolio’s exposure to carbon emissions provides investors insight into potential asset-level risks related to the global climate transition and a clearer picture of how a portfolio is positioned relative to climate-specific targets and objectives.

Two fundamental questions climate-conscious investors often ask themselves when building portfolios are: Are the companies I invest in planning ahead by setting emissions-reduction targets? And, how are these companies performing against those targets?

The MSCI ACWI Select Climate 500 Index is designed with these two questions in mind. At each rebalance, the index follows a rules-based optimized methodology as it seeks to achieve the following: reduce the annual greenhouse-gas-emissions intensity of its constituents; increase the weight of companies with carbon-emissions-reduction targets approved by the Science Based Targets initiative (SBTi); and minimize tracking error and meet other constraints.1

How has the MSCI ACWI Select Climate 500 Index performed?

As of May 31, 2024, the MSCI ACWI Select Climate 500 Index had 50% lower carbon-emissions intensity (relative to enterprise value including cash, or EVIC, and sales) compared to the MSCI ACWI Index. Additionally, based on aggregate weight, the index had 17% more companies with emissions-reduction targets approved by SBTi, as compared to the MSCI ACWI Index.

Based on the backtested index performance from June 30, 2020, to June 4, 2024,2 the MSCI ACWI Select Climate 500 Index returned 13.4% (compared to 12.7% for the MSCI ACWI Index) and had a Sharpe ratio of 0.65 (compared to 0.62 for the MSCI ACWI Index).

Climate metrics

Key metrics

* Net returns annualized in USD ** Annualized one-way index turnover over index reviews *** Monthly averages. Data from June 30, 2020, to June 4, 2024.


1 For complete details, see the MSCI ACWI Select Climate 500 methodology.

2 The MSCI ACWI Select Climate 500 Index was launched on Dec. 15, 2023. Data prior to the launch date is backtested test (i.e., calculations of how the index might have performed over that time period had the index existed). There are frequently material differences between backtested performance and actual results. Past performance — whether actual or backtested — is no indication or guarantee of future performance.

Related content

MSCI Select Climate 500 Index fact sheet

The MSCI ACWI Select Climate 500 Index is designed to support investors seeking to reduce their exposure to the greenhouse gas emissions and increase exposure to companies with their emission reduction targets approved by Science Based Targets initiative (SBTi).

Explore more

MSCI Select Climate 500 Index methodology

The MSCI ACWI Select Climate 500 Index (the ‘Index’) is designed to support investors seeking to reduce their exposure to the greenhouse gas emissions and increase exposure to companies with their emission reduction targets approved by Science Based Targets initiative (SBTi)

Read more

Investment Trends in Focus: Revisiting MSCI’s Five Key Themes for 2024

Chief Research Officer, Ashley Lester and team assess the evolution of the five key themes affecting investors in 2024. What does the landscape look like for the second half of the year?

Learn more

msci logo
  • Terms of Use
  • Legal
  • Modern Slavery Statement
  • Privacy notice
  • Index regulation
  • Locations
  • Cookies
  • Use of ISO standards
  • Site map
Subscribe Contact us
© 2025 MSCI Inc. All rights reserved

UtmAnalytics