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Products September 7, 2010
MSCI Announces Launch of ESG Indices
MSCI Inc. has launched a family of MSCI ESG Indices.
Reported by Rebecca Moore
The indexes are designed to respond to clients’ needs for (Environmental, Social, Governance) ESG indices in three main areas:
- ESG “best-of-class” indices, such as the MSCI World ESG Index, that are designed to include eligible companies with high ESG ratings compared to their sector or industry group peers;
- Values-based indices, such as the MSCI KLD 400 Social Index, for use by investors wishing to invest in accordance with specific values or ethical beliefs; and
- Environmental indices, such as the MSCI Global Environment Index, for use by investors seeking focused exposure to specific environmental themes such as alternative energy or clean technology.
In addition, according to the announcement, MSCI calculates custom ESG indexes using unique ESG requirements specified by clients.
MSCI ESG Indices utilize research from MSCI’s in-house ESG Research business unit, built upon the expertise of KLD, Innovest and IRRC.
“A growing number of asset managers are now subject to ESG-related mandates that will shape their strategies going forward,” said Remy Briand, Head of MSCI Index and ESG Research, in the announcement.
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