Extended Viewer
Understanding MSCI Climate Indexes
Sep 27, 2024
MSCI has developed several categories of climate indexes to address the different priorities investors have in mitigating climate-related risks, leveraging climate-solutions investment opportunities and promoting positive social impact.
When choosing a climate benchmark, an investor begins by defining their climate-related investment objectives, and then maps them to an index’s climate-related metrics, which influence the index’s construction approach.
The MSCI Climate Indexes follow a three-step construction approach that closely adheres to the analysis an investor undertakes in selecting the index that best aligns with their unique climate-related goals, and can serve as an appropriate benchmark for their investment portfolio.
MSCI’s three-step modular approach to creating climate indexes
Download report
Research authors
- Guido Giese, Managing Director, MSCI Research
- Guillermo Cano, Executive Director, MSCI Research
Related content
Climate Indexes
Our Climate Indexes are designed to help institutional investors integrate climate considerations into their portfolio decisions by benchmarking, measuring and managing climate risk exposure and identifying additional investment opportunities. They can also help investors seeking to align with global climate goals as defined by the Paris Agreement.
Explore nowFinancing the Climate Transition
Historically, climate investing has focused on portfolio decarbonization, but investors are increasingly turning to a “finance-the-transition” approach, seeking to invest in transition opportunities. The two approaches are not exclusive and best used hand in hand.
Learn moreUnderstanding the MSCI Climate Action Indexes
The MSCI Climate Action Indexes offer an additional approach to climate investing by selecting companies in each sector that have reduced or committed to reduce emissions, seem well-positioned to manage climate risk and have generated green revenues.
Fin out more