Index provider MSCI has announced the launch of its new MSCI Global Low Carbon Target Index to complement the existing Global Low Carbon Leaders Indices launched earlier this month.
The MSCI Global Low Carbon Target Indexes re-weigh stocks based on their carbon exposure in the form of carbon emissions and fossil fuel reserves.
The MSCI Global Low Carbon Target Indexes are based on the MSCI ACWI Index, a global policy benchmark covering developed and emerging markets, and utilize MSCI ESG CarbonMetrics data from MSCI ESG Research Inc.
The indices Indexes were developed in response to investor demand for benchmarks designed to help identify potential risks associated with the transition to a low carbon economy while representing the performance of the broad equity market.
Remy Briand, managing director and global head of Index and ESG Research comments “We are very happy to see increasing interest in low carbon index strategies from leading asset owners and pension funds around the world such as the United Nations Joint Staff Pension Fund. We are committed to providing a comprehensive and actionable suite of tools to help our clients manage their exposure to carbon risk.”