MSCI expands climate solutions with launch of new climate change indexes

MSCI has launched climate indexes to help investors navigate and measure the investment opportunities and risks associated with the transition to a low-carbon economy.

“The devastating impacts of climate change will be felt beyond the traditional horizons of most sectors, and it is critical that the investment industry collaborates to enable the transition to a low-carbon economy, before climate change becomes a defining issue for financial stability,” said Remy Briand, head of ESG at MSCI.

The new MSCI Climate Change Indexes are part of a holistic toolkit to help investors build more climate-resilient portfolios and integrate climate risk considerations in their global equity investment process, through a simple, rules-based reweighting methodology.

The indexes reweight securities based on MSCI’s Low Carbon transition score, which consistently measures a company’s exposure to low-carbon transition risk, carbon emissions and fossil fuel reserves, and its