MSCI has strengthened its 700-ESG indexes range with the launch of the ESG Universal indexes and renamed two existing ESG index families for long-term global investors.
The MSCI ESG Universal indexes are designed to enable pension funds, endowments and other asset owners to better focus on ESG issues in their investment decision-making processes. The ESG Universal index includes MSCI ACWI ESG Universal index, MSCI World ESG Universal index and MSCI Europe ESG Universal index.
In order to target high ESG performers, the index will differ from a free float market cap weighting and tilts towards companies demonstrating both a robust ESG profile and a positive ESG trend.
Diana Tidd, MSCI’s global head of Index commented, “The MSCI ESG Universal Indexes offer the world’s largest asset owners a scalable way to integrate ESG into their investment decision-making processes. Asset owners can use the Indexes to facilitate asset allocation or to help implement investment strategies in accordance with their ESG goals.”
In 2016, more than $56bn in assets were benchmarked to MSCI ESG indexes globally.
In addition to the launch of the ESG Universal indexes, the existing MSCI ACWI ESG and MSCI ACWI SRI indexes will be renamed this June.
The newly named indexes will continue to provide institutional investors with transparency into ESG sustainability and values alignment, as well as the ability to compare holdings.