MSCI has launched the MSCI Global Low Carbon Leaders Indexes, consisting of companies with significantly lower carbon exposure than the broad market, and VIS Essential Investments has launched an index to track the performance of financially successful and resource-efficient companies.
The MSCI Indexes were developed at the request of and with insights from Fourth Swedish National Pension Fund AP4, Fonds de Réserve pour les Retraites, and Amundi, which were looking for representative benchmarks in the transition to a low-carbon economy. MSCI then consulted on the proposed methodology with a variety of global investors.
The MSCI Global Low Carbon Leaders Indexes are based on the MSCI ACWI Index, the global policy benchmark that covers developed and emerging markets, and utilizes MSCI ESG CarbonMetrics data from MSCI ESG Research.
Similarly, the VIS Essential Investments index enables investors to identify companies best placed to generate long-term growth with lower impacts.
The VIS Essential Investments index includes more than 150 companies in the energy, food and water sectors listed on stock exchanges in OECD-area countries, including water and power utilities, food and beverage companies, equipment manufacturers and consumer goods companies.
The index uses data supplied by Trucost on water use, energy consumption and greenhouse gas emissions for company operations and supply chains. VIS and index provider Solactive use this information as part of their scoring system to assess the performance of companies on resource efficiency and exposure to energy, food and water-related risks.
In a poll conducted last year by PricewaterhouseCoopers of more than 300 professionals, more than two-thirds of executives said they planned to evaluate environmental, social and governance factors in future deals.
Earlier this month, a group of global investors expressed their concern about the lack of rigorous ESG disclosure to the International Organization of Securities Commissions, which the investors say is a growing risk that needs to be addressed.
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