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MSCI Low Carbon Indices: A Free Option on Carbon

Published 14 Oct 2020
Reference 6593
Region Global
Summary

In September 2014, a week before the UN Climate Summit, MSCI launched an innovative family of indices designed to allow investors to manage carbon risk in their portfolio. The MSCI Low Carbon Indices were developed at the request of, and with critical insight from two pension funds – AP4 of Sweden and FRR in France – which committed €2 billion, and Amundi, Europe’s largest asset manager, which licensed the indices in order to offer low carbon funds (index mutual funds, ETFs) to other investors.

Teaching objectives

To study climate change (carbon) risk in investment portfolios and the successful launch of innovative indices for managing this risk.

Keywords
  • Climate Change Risk
  • Carbon Risk
  • Stranded Assets
  • Carbon Footprint
  • Carbon Intensity
  • Tracking Error
  • Low Carbon Investing
  • Decarbonisation
  • Index methodology
  • Signalling
  • Shareholder Engagement
  • Long Term Investors
  • Q42020