MSCI Launches ESG Screened Indexes Suite

    Stockholm (NordSIP) – MSCI, the leading provider of indexes, portfolio construction and risk management services for global investors, has launched MSCI ESG Screened Indexes, a suite of indexes incorporating a range of ESG exclusions.

    The new Indexes will represent the performance of a free-float adjusted market capitalization weighted opportunity set with common ESG exclusions, and are designed to be used as policy and performance benchmarks and serve as the bases of investment products such as ETFs.

    Launched last week, the methodology for the MSCI Screened Indexes incorporates a range of ESG exclusions while seeking to maintain a profile similar to market cap indexes and is the first standard index methodology to do so. It thereby aims to exclude companies associated with thermal coal, oil sands extraction, those deriving revenues from controversial and nuclear weapons, civilian firearms and tobacco, or those violating United Nations Global Compact principles.

    “Making exclusions with a market capitalization approach has been possible for many years and MSCI has done so for over two decades,” said Deborah Yang, Global Head of ESG Indexes. “We have observed a growing interest amongst institutional and wealth investors for market capitalization indexes with ESG exclusions as an off-the-shelf solution, ones that are easy to use and implement.”

    The suite of six indexes (so far) is available as a standard offering for easier access and implementation and includes:

    –       MSCI EMU ESG Screened Index

    –       MSCI USA ESG Screened Index

    –       MSCI Europe ESG Screened Index

    –       MSCI World ESG Screened Index

    –       MSCI Japan ESG Screened Index

    –       MSCI Emerging Markets IMI ESG Screened Index

    Image: (c) Gunnar

    Glenn W. Leaper, PhD
    Glenn W. Leaper, PhD
    Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Political and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his first post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

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