Understanding the MSCI Climate Action Indexes

The MSCI Climate Action Indexes include companies that lead their peers in terms of their positioning and actions to manage transition risks. The methodology reflects what we call the “drive the transition” approach of climate investing. It follows a bottom-up approach where company selection and weighting are driven solely by company characteristics and not influenced by any index-level targets.

The methodology strongly incentivizes companies to disclose their emissions and targets, as emission disclosure increases the likelihood that the company will receive favorable assessment through emission-reduction targets and climate-risk management.

Sector weights for the MSCI ACWI vs. the MSCI ACWI Climate Action Index

Data as at April 2023. Source: MSCI