MSCI has expanded its range of climate

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  • 21 Jun 2019 12:00 AM
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MSCI Launches New Climate Change Indexes

Financial index provider MSCI Inc. has expanded its range of climate indexes to help investors navigate and measure the investment opportunities and risks associated with the transition to a low carbon economy. The new MSCI ‘Climate Change Indexes’ are part of a toolkit to help investors build more climate resilient portfolios and integrate climate risk considerations in their global equity investment process, through a rules-based re-weighting methodology. The indexes re-weight 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 exposure to opportunities including alternative energy and clean technology. The Indexes aim to increase exposure to companies providing solutions to address climate change, with twice the exposure to clean technology companies when compared to the underlying benchmark. The indexes also give four times less exposure to companies with carbon intensive products than the underlying index.

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