PRESS RELEASEMSCI Clarifies the Treatment of Tobacco Companies aspart of its Current MSCI ESG Indexes Consultation
New York – January 17, 2018 – MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes andanalytics, is currently conducting a consultation through the end of January 2018 on potential enhancements tothe MSCI ESG Indexes. Given the feedback that MSCI has received so far in relation to the treatment of tobaccocompanies in the MSCI ESG Indexes, MSCI would like to clarify the way in which the proposals, working
together, would impact the treatment of tobacco:
1. Proposal in relation to worst offenders from all MSCI ESG Indexes

Over the past three years, we have observed consensus among international institutional investors on aminimum set of exclusions when considering ESG in their investment processes. Those exclusions aim to reflect
the common denominator among investors and refer to “worst offenders”. Following feedback frominstitutional investors through consultations in 2016 (e.g. MSCI ESG Universal Index consultation and MSCIFactor ESG Target Series Indexes), we defined worst offenders as those involved in controversial weapons orfound in violation of Global Norms (i.e., OECD guidelines, UN Global Compact, etc.). At that time, we did notobserve consensus among investors around the inclusion of other controversial activities as worst offenders(e.g. tobacco, thermal coal, etc.).
In our current consultation, we are asking for feedback on whether such other controversial activities (includingtobacco) should be included as worst offenders, and hence, excluded from all of the MSCI ESG Indexes. An
analysis of the impact of excluding tobacco companies from MSCI ACWI can be found in the appendix (page 36)of the MSCI ESG Indexes Consultation document at https://www.msci.com/index-consultations.
2. Proposal to remove values based exclusions screening from the MSCI ESG Leaders Index

Over the past few years, we have observed an increasing interest from international institutional investors toaccount for ESG issues in their investment decisions. Some use ESG issues to enhance long term return andmitigate long term risks. Others use ESG issues as a way to align their investments with their ethical or politicalbeliefs (e.g., values alignment). The MSCI ESG Leaders Index is an example of an index primarily used byinvestors looking for ESG integration with lower interest in values alignment. As a result, we are asking for
feedback on whether values based exclusion screening should be removed from the MSCI ESG Leaders Index.
The rationale for the change is to clarify the objective of the index.
Tobacco companies might still be excluded from the MSCI ESG Leaders Index if tobacco is included in thecategory of worst offenders (as per point 1 above) even if the proposal of removing value based exclusion
screening is accepted following the consultation.
The MSCI ESG Indexes Consultation document is available on the MSCI website at:https://www.msci.com/index-consultations.
This consultation may or may not lead to the implementation of any or all of the proposed changes in any MSCI
indexes. Consultation feedback will remain confidential. MSCI may publicly disclose feedback if specificallyPRESS RELEASE

requested by specific market participants. In that case, the relevant feedback would be published together withthe final results of the consultation.
-Ends-About MSCIFor more than 40 years, MSCI’s research-based indexes and analytics have helped the world’s leading investors build andmanage better portfolios. Clients rely on our offerings for deeper insights into the drivers of performance and risk in theirportfolios, broad asset class coverage and innovative research.
Our line of products and services includes indexes, analytical models, data, real estate benchmarks and ESG research.
MSCI serves 99 of the top 100 largest money managers, according to the most recent P&I ranking.
For more information, visit us at www.msci.com.

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