MSCI ESG Indexes
The combination of MSCI’s leading index and ESG Research expertise

Our more than 1,500 equity and fixed income ESG indexes are used by institutional investors for index-based
investment products, risk and return analysis, compliance with ESG mandates, and to define an investment universe.

Key features
Integrated business model• Staff of 350+ employees and morethan 200 dedicated research analysts• Control over the quality and content ofstandard indexes• Commited relationship management

ESG investment strategies

processExperience• Backed by a dedicated ESG client• ESG research since 1972 and indexes

service team.

since 1990

Quality ESG research• MSCI ESG Research has a 40 year

• 24/5 client service• First ESG provider to assess

legacy based on GMI Ratings, KLD,
Innovest and IRRC

Integration

Client service excellence• Products to support the full range ofthe indexes• Consistency between the ESG andtechnology infrastructurearound the world

the ESG research• Alignment between the research and• Advanced data andcompanies based on industry financial
materiality, dating back to 1999.1

MSCI ESG Equity

MSCI ESG Fixed Income & Bloomberg Barclays MSCI• ESG Leaders

MSCI• ESG Focus• ESG Universal• ESG Universal• ESG Leaders• Low Carbon• Climate2• Climate Change

Bloomberg Barclays MSCI• ESG Weighted• Sustainability

Values &Screens• SRI

Bloomberg Barclays MSCI• KLD 400 Social• Socially Responsible (SRI)• ESG Screened• Faith based• Ex Controversial Weapons• Ex Tobacco Involvement• Ex Fossil Fuel• Faith BasedImpact• Sustainable Impact

Bloomberg Barclays MSCI

• Global Environment• Green Bonds• Women’s Leadership
1 Origins of MSCI ESG Ratings established in 1999.
2 Planned for 2020.

MSCI ESG Indexes | msci.com

Overview
MSCI ESG Indexes are designed to help clients incorporate environmental, social and governance (ESG) factors into theirinvestment decision making processes. The MSCI ESG Indexes range includes:

Indexes

Description

MSCI ESG Leaders
Indexes

The indexes use a best-in-class approach by only selecting companies that have the highest MSCIESG Ratings. They are free float-adjusted market capitalization weighted indexes designed torepresent the performance of companies that have favorable ESG profiles compared to industry
peers. Overall the indexes target a 50% sector representation vs. the parent index.

MSCI Focus Indexes

These indexes are designed to maximize exposure to positive ESG factors while exhibiting risk andreturn characteristics similar to those of the underlying market capitalization weighted index

MSCI SRI Indexes

These indexes consist of companies with the highest ESG ratings making up 25% of the adjusted
market capitalization in each sector of a parent MSCI index, after excluding companies involved inalcohol, tobacco, gambling, civilian firearms, military weapons, nuclear power, adult entertainmentand genetically modified organisms (GMOs). In addition to MSCI ACWI SRI Index, MSCI World SRIIndex and MSCI EM SRI Index, region and country sub-indexes are available. It also includes theMSCI KLD 400 Social Index, which was launched in May 1990 and is the first SRI index.

MSCI ESG UniversalIndexes

These indexes are created by re-weighting free-float market cap weights based upon certain
ESG metrics tilting away from free-float market cap weights, these indexes enhance exposure
to those companies that demonstrate both a higher MSCI ESG Rating and a positive ESG trend,
while maintaining a broad and diversified investment universe. Current suite of indexes include MSCI ACWI ESG Universal, MSCI World ESG Universal, MSCI EM ESG Universal, MSCI Europe ESG
Universal and MSCI USA ESG Universal Index.

MSCI Global exTobacco Involvement
Indexes

These indexes have been developed for institutional investors, including pension funds, and universal

MSCI Climate
Change Indexes

These indexes are designed to represent the performance of a strategy that reweights securities

owners who wish to avoid investments in companies involved in the tobacco business. Identificationof companies involved in the tobacco business is based on data from MSCI ESG Research.

based upon the opportunities and risks associated with the transition to a low carbon economy,
enabling institutional investors and wealth managers to integrate climate risk considerations intheir global equity investment process.

MSCI Low Carbon
Indexes

These indexes are intended to help identify potential risks associated with the transition to alow carbon economy while representing the performance of the broad equity market. Launchedin 2014 they are the first index series designed to address two dimensions of carbon exposure:carbon emissions and fossil fuel reserves.
The index aims for a tracking error target of 0.3% (30 basis points) while minimizing the carbon exposure.

MSCI Global
EnvironmentalIndexes

These indexes include Low Carbon, Fossil Fuels Exclusion Thematic indexes, etc. Increasingly,
institutional investors may need to consider how climate change may present risks andopportunities and how to manage carbon exposure in their portfolios. These indexes are designed
to support various low carbon investment strategies and include the MSCI Low Carbon Indexes,
MSCI Global Fossil Fuels Exclusion Indexes, and the MSCI Thematic Indexes.

MSCI ESG Indexes | msci.com

Indexes

Description

MSCI USA ESG
Select Index

These indexes are designed to target companies with positive environmental, social and governance(ESG) factors while exhibiting risk and return characteristics similar to those of the MSCI USA Index.
The index is constructed through an optimization process that aims to maximize its exposure to ESG
factors, subject to an expected tracking error of 1.8% and other constraints. It is sector-controlled,
and is designed to over-weight companies with high ESG ratings and under-weight companies withlow ratings. Tobacco and Controversial Weapons companies, as well as major producers of Alcohol,Gambling, Firearms, Military Weapons and Nuclear Power, are not eligible for inclusion.

MSCI KLD 400
Social Index

These indexes are designed to provide exposure to companies with high MSCI ESG Ratings whileexcluding companies whose products may have negative social or environmental impacts. It
consists of 400 companies selected from the MSCI USA IMI Index, which includes large-, mid- andsmall-cap US companies. It aims to select companies with the highest ESG Ratings in each sector
and maintain sector weights similar to those of the parent index.

MSCI ACWI
SustainableImpact Index

These indexes are comprised exclusively of companies whose core business addresses atleast one of the world’s social and environmental challenges, as defined by the United Nations
Sustainable Development Goals. To be eligible for inclusion in the Index, companies must generate
at least 50% of their sales from one or more of the Sustainable Impact categories and maintainminimum environmental, social and governance (ESG) standards. The parent index is MSCI ACWI.

MSCI Fixed
Income Indexes

These indexes are designed to help institutional investors benchmark to ESG investment
performance, as well as manage, measure and report on ESG mandates. These indexes include
the MSCI USD IG ESG Leaders Corporate Bond Index and the MSCI USD IG ESG Universal
Corporate Bond Index.

Bloomberg Barclays
MSCI ESG-WeightedThese indexes use MSCI ESG Ratings and MSCI ESG Ratings momentum to overweight/underweight
issuers within an existing Bloomberg Barclays parent index. These indexes include the full universeof index eligible securities and then apply tilts to the natural market value weights in favor of higher
rated/positive momentum issuers and against lower rated/negative momentum issuers.

Bloomberg Barclays
MSCI SustainabilityIndexes

These indexes positively screen issuers from existing Bloomberg Barclays parent indexes basedon MSCI ESG Ratings, which are a “best in class” assessment of how well an issuer manages
ESG risks relative to its industry peer group. ESG Ratings are available for corporate, sovereign,and government-related issuers. The minimum threshold applied to Bloomberg Barclays flagshipindexes is an MSCI ESG rating of BBB or better.

Bloomberg Barclays
MSCI Socially
Responsible (SRI)
Indexes

These indexes negatively screen out issuers from existing Bloomberg Barclays parent indexes thatBloomberg Barclays
MSCI Green BondIndexes

These indexes offer investors an objective and robust measure of the global market for fixed

may be involved in business lines or activities that are in conflict with investment policies, values
or social norms. These indexes use MSCI Business Involvement Screening Research (BISR) andMSCI ESG Controversies to identify exposure to screened issues.

income securities issued to fund projects with direct environmental benefits. An independent
research-driven methodology is used to evaluate index-eligible green bonds to ensure they adhere toestablished Green Bond Principles and to classify bonds by their environmental use of proceeds.

MSCI ESG Indexes | msci.com

Indexes

Description

Enhanced FocusIndexes

The MSCI ESG Enhanced Focus Indexes are designed to maximize their exposure to positive ESG
metrics while reducing exposure to carbon dioxide (CO2) and other greenhouse gases (GHG) as
well as their exposure to potential emissions risk of fossil fuel reserves by thirty percent (30%).
The Indexes also aim to maintain risk and return characteristics similar to those of their respective
underlying market capitalization weighted indexes.

ESG ScreenedIndexes

These indexes are designed for institutional investors and aim to exclude companies: associatedwith controversial, civilian, nuclear weapons and tobacco that derive revenues from thermal coal andoil sands extraction or that are not in compliance with the United Nations Global Compact (UNGC)
principles. The indexes incorporate these exclusions while seeking to maintain a profile similar tomarket cap indexes. The suite of six indexes is available as a standard offering for easier access andimplementation. The exclusions have been selected to span the three pillars of Environmental, Socialand Governance (ESG) investing which reflect investors’ most common concerns.

Custom MSCIESG Indexes

Over

These indexes are calculated using ESG criteria specified by clients and applied across developedand or emerging markets countries or regions.

1500

MSCI ESG Indexes

MSCI is the leading
major index provider
with in‑house ESG
research expertise.

About MSCI ESG Research products and services
MSCI ESG Research products and services are provided by MSCI ESG Research LLC, and are designed to provide in-depth
research, ratings and analysis of environmental, social and governance-related business practices to companies worldwide. ESG
ratings, data and analysis from MSCI ESG Research LLC. are also used in the construction of the MSCI ESG Indexes. MSCI ESG
Research LLC. is a Registered Investment Adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc.

About MSCIMSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50years of expertise in research, data and technology, we power better investment decisions by enabling clients to understandand analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading researchenhanced solutions that clients use to gain insight into and improve transparency across the investment process.
To learn more, please visit www.msci.com.
The information contained herein (the “Information”) may not be reproduced or disseminated in whole or in part without prior written permission from MSCI. The Information may not be used to verify orcorrect other data, to create indexes, risk models, or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment
vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information or MSCI index or other productor service constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy. Further, none of the Information or any MSCI index
is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Information is provided “as is”
and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF MSCI INC. OR ANY OF ITS SUBSIDIARIES OR ITS OR THEIR DIRECT OR
INDIRECT SUPPLIERS OR ANY THIRD PARTY INVOLVED IN THE MAKING OR COMPILING OF THE INFORMATION (EACH, AN “MSCI PARTY”) MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TOTHE MAXIMUM EXTENT PERMITTED BY LAW, EACH MSCI PARTY HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FORA PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITYREGARDING ANY OF THE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIED OF THEPOSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.
©2021 MSCI Inc. All rights reserved | CFS0421

MSCI ESG Indexes | msci.com