CONSULTATION ON POTENTIAL CHANGES TO THE GLOBALINDUSTRY CLASSIFICATION STANDARD (GICS®) STRUCTURE
IN 2022
November 29, 2021

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TABLE OF CONTENTS
1. Introduction………………………………………………………………………………………………………………………………………………..3
2. Mode of Consultation…………………………………………………………………………………………………………………………………4
3. Summary of topics for the 2021 GICS consultation………………………………………………………………….....................5
4. Classification of Renewable Energy …………………………………………………………………………………………...………………6
5. Classification of Retailers ………………………………………………………………………………………………………………………….12
6. Classification of Data Processing & Outsourced Services ………………………………………………………………………….17
7. Classification of Banks and Thrifts & Mortgage Finance ……………………………………………………………………………22
8. Classification of REITs ……………………………………………………………………………………………………………………………….26
9. Classification of Transportation ………………………………………………………………………………………………………………..31
10. Update to GICS definitions: Classification of Cannabis ……………………………………………………………………………..35

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INTRODUCTION▪ In August 1999, MSCI and S&P Dow Jones Indices announced their agreement to co-develop GICS. The four-tier structure was first
introduced with 10 Sectors, 23 Industry Groups, 59 Industries, and 123 Sub-Industries. The structure has since evolved to 11 Sectors, 24
Industry Groups, 69 Industries, and 158 Sub-Industries. This evolution of the GICS structure ensures that GICS is reflective of today’s
markets and continues to be an accurate and complete industry framework.

▪ MSCI and S&P Dow Jones Indices are consulting with members of the investment community on potential changes to the GICS structure in
2022. This consultation paper is designed to allow market participants to understand and give feedback on the potential chang es, which inturn will help MSCI and S&P Dow Jones Indices to make any final decisions.
▪ The consultation begins on October 18, 2021 and ends on February 18, 2022. In addition, MSCI and S&P DJI will provide proforma
classifications for a select list of companies potentially impacted by the consultation with market capitalization above US $2 billion no later
than January 21, 2022. Please note that these proforma classifications should not be considered as final classifications even if the
proposals are ultimately adopted*.
▪ Due to the extension of the feedback period, final changes to the GICS structure are expected to be announced by March 2022 with an
expected GICS Direct implementation date in March 2023*.

▪ Further information regarding MSCI and S&P DJI proforma indices and index implementation timeline will be announced after the final
changes to the GICS Structure has been announced*.
▪ The consultation may or may not result in any changes to the GICS structure.

* In an announcement dated November 29, 2021, MSCI and S&P DJI announced the extension of the feedback period for the consultation from December 20, 2021 to February 18, 2022 and also
provided some additional updates

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MODE OF CONSULTATION
If you would like to participate in this consultation, there are two options:
1) Click on the below links to participate in the online survey▪MSCI: www.msci.com/consultation-gics▪S&P Dow Jones Indices: https://www.spglobal.com/spdji/en/governance/consultations/mr47787/

2) Contact one of the following email addresses with your feedback▪MSCI: clientservice@msci.com▪S&P Dow Jones Indices: index_services@spglobal.com▪Contact MSCI or S&P Dow Jones Indices’ Account Manager or Representative
For a detailed description of GICS, please refer to MSCI’s website at www.msci.com/gics and S&P Dow Jones Indices’ website
at www.spdji.com.

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SUMMARY OF TOPICS FOR THE 2021 GICS CONSULTATION
S. No. Topic

Summary

1

Classification of Renewable Energy

Consolidate all ‘Energy’ producers and related equipment & service providers under the
Energy Sector. This includes producers of non-renewable energy such as oil, gas, thermal coaland electricity from non-renewable sources as well as generators of electricity fromrenewable sources. This enables a distinction between ‘energy generation’ and ‘energy
distribution to end users’ and consolidates renewable energy generation and renewableenergy equipment companies under the Energy Sector.

2

Classification of Retailers

Discontinue the Internet & Direct Marketing Retail Sub-Industry and consolidate various
retail formats spread across the Consumer Discretionary and Consumer Staples Sectors.

3

Classification of Data Processing &Outsourced Services

Discontinue the Data Processing & Outsourced Services Sub-Industry from the Information
Technology Sector and move it to the Industrials Sector. In addition, reclassify transaction
and payment processing companies from the Information Technology Sector to the Financials
Sector.

4

Classification of Banks and Thrifts &Mortgage FinanceConsolidate Diversified Banks, Regional Banks and Thrifts/Saving Banks into one Sub-Industry
and reclassify Mortgage Finance from Banks to the Financial Services Industry Group.

5

Classification of REITs

Introduce more granularity to Equity REITs.

6

Classification of Transportation

Redefine the Trucking Sub-Industry and create one new Sub-Industry called Passenger
Ground Transportation.

7

Update the definition of Pharmaceuticals to include companies primarily manufacturing
Update to GICS definition: Classification of
cannabis-based drugs used to treat diseases. Pharmaceuticals will exclude manufacturers ofCannabisother cannabis-based products classified based on their end-use.

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CLASSIFICATION OF RENEWABLE ENERGY COMPANIESCurrent classification:

Rationale for the review:▪ Conventional energy producers such as oil, gas, consumable fuels and related
equipment are classified under the Energy Sector whereas companies thatgenerate electricity using renewable as well as non-renewable sources areclassified under the Utilities Sector.

▪

The rapid growth of investment and capacity in the
renewable energy generation space is transforming
the competitive landscape of both the Energy andUtilities Sectors. As innovation accelerates and costs
decline, renewable energy generation sources are
becoming significant competitors to traditionalenergy source providers, and it is important toreflect this expansion in the energy source types
within the Energy Sector.

▪

Investors have an interest in more granularclassifications of these renewable energy
generation sources, consolidated within the GICS
structure.

▪ Manufacturers of renewable energy equipment such as solar modules & cells
and solar power systems are classified under the Information Technology andIndustrials Sectors, respectively.
Industry
Industry
Sub-Industry
Group
Energy Equipment & Oil & Gas Drilling
Services
Oil & Gas Equipment & Services
Integrated Oil & Gas
Energy Energy
Oil & Gas Exploration & Production
Oil, Gas &Oil & Gas Refining & Marketing
Consumable Fuels
Oil & Gas Storage & Transportation
Coal & Consumable Fuels
SectorIndustry
Industry
Sub-Industry
Group
Electric Utilities
Electric Utilities
Gas Utilities
Gas Utilities
Multi-Utilities
Multi-Utilities
Utilities Utilities Water Utilities
Water Utilities
Independent Power Independent Power Producers &and Renewable
Energy Traders
Electricity Producers Renewable Electricity

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PROPOSAL
Consolidate energy producers and related equipment & service providers under the Energy Sector. This includes producers of non renewable energy such as oil, gas, thermal coal and electricity from non-renewable sources as well as generators of electricity fromrenewable sources. This enables a distinction between ‘energy generation’ and ‘energy distribution to end users’ and consolid ates
renewable energy generation and renewable energy equipment companies together under the Energy Sector.

▪ Reclassify the generation and wholesaling of electricity from the Utilities to the Energy Sector. Retain distribution of electricity to end-users
under the Utilities Sector.
▪ Create a Renewable Energy Industry Group under the Energy Sector with granular Sub-Industries for Renewable Energy Generation,
Renewable Energy Equipment & Services, and Renewable Fuels.

▪ Split the Electric Utilities Sub-Industry under the Utilities Sector into Renewable and Non-Renewable Electric Utilities.

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PROPOSED STRUCTURE – ENERGY SECTOR
SectorIndustry Group

Industry

Sub-Industry

Non-Renewable
Energy (New)

Non-Renewable Energy Equipment
Oil & Gas Drilling& Services (Rename)Oil & Gas Equipment & Services
Integrated Oil & Gas
Oil & Gas Exploration & Production
Oil & Gas Production, Marketing &Transportation (New)Oil & Gas Refining & Marketing
Oil & Gas Storage & Transportation

Company examples*
China Oilfield Services, Helmerich &Payne
Schlumberger, Halliburton
Saudi Aramco, Exxon Mobil
ConocoPhillips, CNOOC
Reliance Industries, Marathon
Petroleum
Enbridge, Kinder Morgan

CONSOL Energy, Coal India
Thermal Coal & Other Consumable Thermal Coal (New)Uranium(New)
Cameco, Kazatomprom
Fuels (New)
Other Consumable Fuels (New)
Shanxi Coking, Shanxi Meijin
Non-Renewable Independent Power
Non-Renewable Independent Power Producers
Producers & Energy Traders (Sector& Energy Traders (Sector change & rename)change & rename)CGN Power, NTPC
Renewable Energy Equipment &Renewable Energy Equipment & Services
Enphase Energy, Sungrow PowerServices (New)(New)
Supply, Canadian Solar

EnergyRenewable Fuels (New)

Renewable Fuels (New)

Solar Energy (New)

Renewable Energy(New)Wind Energy (New)
Renewable Energy Producers (New)Hydro Energy (New)

Renewable Energy Group, Verbio
Adani Green Energy, Transalta
Renewables
China Three Gorges, China Longyuan
Power

Diversified Renewable Energy (New)

China Yangtze, Brookfield Renewable
EDP Renovaveis, Nextera Energy
Partners

Other Renewable Energy (New)Albioma, Montauk Renewables

Note: Changes to the GICS structure are highlighted in red*The purpose of identifying companies as examples is only to provide context to the discussion. It does not imply that the company is being reclassified, even if changes are made to the GICS structure. MSCI and S&P DJI reserve the right to classify companies as
they see appropriate.

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PROPOSED STRUCTURE – UTILITIES SECTOR
SectorIndustry Group

Industry

Sub-Industry
Renewable Electric Utilities (New)Company examples*
Orsted, VERBUND

Gas Utilities
Multi-Utilities

Non-Renewable Electric Utilities (New)Gas Utilities
Multi-Utilities

Water Utilities
Independent Power andRenewable Electricity Producers(Discontinue)

Water Utilities
Independent Power Producers & Energy
Traders (Discontinue)
Renewable Electricity (Discontinue)

Duke Energy, Xcel Energy
Hongkong China Gas, SNAM
Dominion Energy, ENGIE
American Water Works, United
Utilities GroupElectric Utilities

Utilities

Utilities-

Note: Changes to the GICS structure are highlighted in red*The purpose of identifying companies as examples is only to provide context to the discussion. It does not imply that the company is being reclassified, even if changes are made to the GICS structure. MSCI and S&P DJI reserve the right to classify companies as
they see appropriate.

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PROPOSED DEFINITIONS
Sub-Industry

Proposed definitions
Companies involved in the production and mining of Bituminous (Thermal) Coal and related products used
Thermal Coalsolely for energy production. This Sub-Industry excludes companies primarily mining for metallurgical (coking)coal used for steel production classified as Steel.
Companies involved in the mining & production of uranium deposits and the processing of uranium
Uranium
concentrate into nuclear fuel.
Companies involved in the production, mining and processing of other fossil fuels and consumable fuels such as
Other Consumable Fuels
petroleum coke.
Companies involved in the manufacture and installation of renewable energy equipment and providers ofRenewable Energy Equipment & related services. This Sub-Industry includes manufacturers of large battery storage & stationary fuel cells, wind
power turbines, solar modules, photovoltaic cells & panels, and equipment used to produce renewable energy
Servicesand fuels.
Manufacturers of renewable gas and liquid fuel including green hydrogen and biomass derived fuels such as
Renewable Fuels
ethanol and biodiesel.
Companies engaged in the generation of electricity using solar energy. This Sub-Industry excludes companies
Solar Energy
distributing electricity to the end-users that are classified under the Utilities Sector.
Companies engaged in the generation of electricity using wind energy. This Sub-Industry excludes companies
Wind Energy
distributing electricity to the end-users that are classified under the Utilities Sector.
Companies engaged in the generation of electricity using water & geo-thermal energy. This Sub-Industry
Hydro Energy
excludes companies distributing electricity to the end-users that are classified under the Utilities Sector.
Companies that engage in the generation and distribution of electricity using multiple renewable energy
sources, none of which contribute 60% of the company’s revenue or majority of both the company’s revenues
Diversified Renewable Energy
and earnings. This Sub-Industry excludes companies distributing electricity to the end-users that are classified
under the Utilities Sector.
Other Renewable Energy
Companies engaged in the generation of renewable energy not classified elsewhere.
Renewable Electric Utilities
Companies distributing electricity generated from renewable energy sources to end users.
Non-renewable Electric Utilities Companies distributing electricity generated from non-renewable energy sources to end users.

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DISCUSSION TOPICS
1. Should companies engaged in the following businesses be consolidated under the Energy Sector?
▪ Renewable Energy producers▪ Renewable Energy Fuel producers▪ Manufacturers of Renewable Energy Equipment such as solar modules & cells, raw material & equipment for the solar powerindustry and installers of solar power systems▪ Non-Renewable Independent Power Producers & Energy Traders

2. Should GICS reclassify companies that generate and wholesale energy/electricity, but do not distribute to end users, into the Energy
Sector from the Utilities Sector?
3. Should Electric Utilities distributing electricity produced from renewable sources be classified in a separate Sub -Industry from those
distributing electricity produced from non-renewable sources?

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CLASSIFICATION OF RETAILERS
Current classification:
SectorRationale for the review:

Industry
IndustryGroup
Distributors

Distributors

Internet & Direct
Marketing RetailInternet & Direct
Marketing Retail
Department Stores

Multiline Retail

General MerchandiseStoresApparel RetailComputer & Electronics
RetailHome Improvement
RetailSpecialty Stores
Automotive Retail
Homefurnishing Retail

Consumer
Retailing
Discretionary
Specialty Retail

SectorIndustryGroup

Consumer
Staples

Food &
Staples
Retailing

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Sub-Industry

Industry

Sub-Industry

Food & Staples
Retailing

Drug Retail
Food Distributors
Food Retail
Hypermarkets & Super
Centers▪

GICS generally classifies companies based on the industry inwhich they operate rather than the underlying technology
used to deliver a product or service.

▪

In addition, the retail landscape has evolved over the years,
and we now observe below key characteristics related totheir classification under the GICS structure:© 2021 All rights reserved.
Information Classification: GENERAL▪

Retailers are opting to pursue an omni-channel
approach to sell their products rather than sticking
with mainly to brick-and-mortar retail or purely online channels.

▪

No significant demarcation is left between General
Merchandise Stores and Department Stores as bothformats are comprised of retail spaces primarily
selling consumer discretionary goods.

▪

Retailers generating a majority of their revenue or
earnings from consumable staple items such as food,household, and personal products should be
consolidated under the Consumer Staples Sector.

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PROPOSAL
Discontinue Internet & Direct Marketing Retail.

▪
▪

Reclassify all existing companies into their respective Retail or other Sub-Industries based on the nature of goods sold by them.
Reclassify companies operating online marketplaces for consumer products and services into their respective Retail or other SubIndustries.

Merge General Merchandise Stores and Department Stores into one Sub-Industry named as Broadline Retail under the Consumer
Discretionary Sector. This Sub-Industry also includes online marketplaces for consumer discretionary goods.
▪

Expand the definition to include online marketplaces retailing consumer discretionary goods.

Reclassify select companies mainly selling consumable merchandise currently classified under the Consumer Discretionary Sector to theConsumer Staples Sector.
▪
▪

Rename Hypermarkets & Super Centers under the Consumer Staples Sector to Consumable Merchandise Retail.
Update the definition to include retailers of consumable merchandise offering a wide-range of consumable staples such as food,household, and personal products.

Update GICS nomenclature for select Retail classifications.
▪

Replace “Stores” with “Retail” in GICS nomenclature to reflect the omni-channel strategies being adopted by many retail companies.

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PROPOSED STRUCTURE
SectorIndustry Group

Consumer Discretionary
Consumer Discretionary Distribution & Retail(Rename)Industry
Distributors
Internet & Direct
Marketing Retail(Discontinue)
Multiline Retail

Sub-Industry
Distributors
Internet & Direct Marketing Retail(Discontinue)-

Department Stores (Discontinue)-

General Merchandise Stores (Discontinue)-

Broadline Retail (New)Apparel RetailComputer & Electronics RetailHome Improvement RetailSpecialty RetailSpecialty Retail (Rename)Automotive Retail
Homefurnishing Retail

SectorIndustry Group

Industry

Consumer Staples

Consumer Staples
Distribution & Retail(Rename)Consumer Staples
Distribution & Retail(Rename)Company examples*
Genuine Parts, Pool Corp

Macy’s, Nordstrom, Kohl’s,
Amazon, Alibaba, eBay
Inditex, Hennes & Mauritz
Best Buy, Gamestop
Home Depot, Lowe's
Bath & Body Works, Chow Tai
Fook Jewellery
O'Reilly Automotive, Autozone
Nitori Holdings, RH

Sub-Industry

Company examples*
Walgreens Boots Alliance, Welcia
Drug Retail
Holdings
Food Distributors
Sysco, US Foods Holding
Alimentation Couche, Seven & I
Food Retail
Holdings
Consumable Merchandise Retail (Rename Dollar Tree, Dollar General,& Definition update)
Target, Walmart, Costco

Note: Changes to the GICS structure are highlighted in red*The purpose of identifying companies as examples is only to provide context to the discussion. It does not imply that the company is being reclassified, even if changes are made to the GICS structure. MSCI and S&P DJI reserve the right to classify companies as
they see appropriate.

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PROPOSED DEFINITIONS
Sub-Industry
Broadline Retail

Consumable Merchandise Retailspdji.com

Proposed definitions
Retailers offering a wide range of consumer discretionary merchandise. This Sub-Industry includes
general merchandise retailers, department stores and online marketplaces for consumer discretionary
merchandise.
Retailers offering a wide-range of consumable merchandise such as food, household, and personal
products. This Sub-Industry includes hypermarkets, super centers and other consumable retailers
such as dollar stores and discount retail spaces selling mostly consumer staples goods.

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DISCUSSION TOPICS
1. Should the Internet & Direct Marketing Retail Sub-Industry be discontinued, and companies reclassified into their respective Retail orother Sub-Industries based on the nature of the goods sold or services offered by them?
2. Should there be a distinction between online retailers and brick-and-mortar retailers?

3. Should General Merchandise Stores and Department Stores be combined into one Sub-Industry called Broadline Retail under theConsumer Discretionary Sector?
4. Should companies mainly selling consumable merchandise currently classified under the Consumer Discretionary Sector as General
Merchandise Stores be reclassified under the Consumer Staples Sector as Consumable Merchandise Retail?

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CLASSIFICATION OF DATA PROCESSING & OUTSOURCED SERVICES
Current classification:

Rationale for the review:▪ Data Processing & Outsourced Services under the Information
Technology Sector includes providers of commercial electronic dataprocessing and/or business process outsourcing services.

▪

Companies classified as Data Processing &Outsourced Services offer services either
customized for select industries such as Human
Resources or Travel or to diverse industries, as is
the case with transaction and payment processing
companies offering payment related transaction
and payment processing services by connecting
consumers, financial institutions, merchants,
governments, digital partners, businesses andother organizations.

▪

These support activities are closely aligned withthe business support activities covered under the
Industrials Sector rather than the Information
Technology Sector, and with the Financials Sector
in the case of payment processors.

▪ It also includes companies that provide services for back-officeautomation and credit card, check and bank transaction processing.
SectorIndustryGroup

Industrials

Commercial Printing
Environmental & Facilities
Commercial
Services
Commercial Services &Office Services & Supplies
Supplies&
Diversified Support Services
Professional
Security & Alarm Services
Services
Human Resource &Professional
Employment Services
Services
Research & Consulting Services

SectorIndustryGroup

Industry

Industry

Information Software &IT Services
Technology Services

spdji.com

Sub-Industry

Sub-Industry
IT Consulting & Other Services
Data Processing & Outsourced
Services
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PROPOSAL
Discontinue the Data Processing & Outsourced Services Sub-Industry under the Information Technology Sector and move it to theIndustrials Sector. In addition, reclassify transaction and payment processing companies from the Information Technology Sect or to the
Financials Sector.
▪

Reclassify companies offering call center and other business outsourced services to diverse industries, including customer relationshipmanagement (CRM) services, from the Data Processing & Outsourced Services Sub-Industry under the Information Technology Sector to
the Industrials Sector.

▪

Reclassify transaction and payment processing companies to a newly created Sub-Industry called Transaction and Payment Processing
Services under the Financials Sector.

▪

Reclassify payroll processing companies to the Industrials Sector under the Human Resource & Employment Services Sub-Industry.

▪

Reclassify companies that offer travel related data processing and outsourced services under the Consumer Discretionary Sector to the
Hotels, Resorts & Cruise Lines Sub-Industry.

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PROPOSED STRUCTURE
SectorIndustrials

Industry Group

Industry

Sub-Industry
Commercial Printing

Commercial Services Environmental & Facilities Services& Supplies
Office Services & Supplies
Diversified Support Services
Commercial &Security & Alarm Services
Professional Services
Human Resource & Employment Services(Definition update)Professional Services Research & Consulting Services
Data Processing & Outsourced Services(Sector change & definition update)

SectorIndustry Group

Financials

Financial Services(Rename)Note: Changes to the GICS structure are highlighted in red

Industry

Financial Services(Rename)Sub-Industry
Diversified Financial Services (Rename)Multi-Sector Holdings
Specialized FinanceTransaction and Payment Processing Services(New)

Consumer FinanceConsumer Finance

Company examples*
Dai Nippon Printing, Brady
Waste Management, RepublicServicesMSA Safety, Herman Miller
Cintas, Copart
Secom, ADT
Recruit Holdings, Automatic Data
Process, Paychex
Thomson Reuters, RELXTELUS International, Broadridge
Financial**
Company examples*
Bajaj Finserv, Orix
Berkshire Hathaway, Investor AB
Chailease Holding, PiramalEnterprises
VISA, Mastercard, PayPal
Holdings, Fidelity National
Information Services**
American Express, Capital One
Financial

Note: Changes to the GICS structure are highlighted in red*The purpose of identifying companies as examples is only to provide context to the discussion. It does not imply that the company is being reclassified, even if changes are made to the GICS structure. MSCI and S&P DJI reserve the right to classify companies as they
see appropriate.
**As an update on November 29, 2021, Fidelity National Information Services was moved from Data Processing & Outsourced Services to Transaction and Payment Processing Services and TELUS International was added as a company example in Data Processing &Outsourced Services

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PROPOSED DEFINITIONS
Sub-Industry

Proposed definitions
Companies providing business support services relating to human capital management. This SubIndustry includes employment agencies, employee training, payroll processing, benefit & retirement
Human Resource & Employment Services support services, corporate & job seeker recruitment services, and online job portals generating
revenue from fees or commissions for offering recruitment services to companies or job seekers.
Providers of commercial data processing and/or business process outsourcing services. This SubIndustry includes companies providing services for customer experience management, back-office
Data Processing & Outsourced Services
automation, call center management, and investor communications.
Transaction and Payment Processing
Services

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Providers of transaction & payment processing services and related payment services including digital& mobile payments and digital wallet providers.

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DISCUSSION TOPICS
1. Should companies that provide payment and transaction processing services be reclassified to the Financials Sector from theInformation Technology Sector?
2. Should call centers and other business outsourced services including customer experience management be reclassified to theIndustrials Sector or remain in the Information Technology Sector?

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CLASSIFICATION OF BANKS AND THRIFTS & MORTGAGE FINANCE
Current classification:
SectorIndustryGroup

Rationale for the review:

Industry
Banks

Financials Banks▪ With the evolution of the Banking industry, identifying“geographic footprints” is becoming less meaningful as
mergers create super regional banks often with diverse
regional footprints.

Sub-Industry
Diversified Banks

Regional Banks

Thrifts & Mortgage
Thrifts & Mortgage Finance
Finance▪ The distinction between Thrifts/Savings Banks and Regional
Banks is becoming less relevant as banking laws have
evolved in the U.S. and elsewhere. Most of these
institutions now offer diverse services such as conventional
retail banking, small and medium corporate lending, andother thrifts related financial services.
▪ ​Mortgage Finance, where revenue is more fee-based thaninterest income based, are distinct from Banks as theymainly offer mortgage finance related products & services
for commercial & residential real estate properties.

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PROPOSAL
Combine all Banks, Thrifts, and Savings Banks into one Sub-Industry and reclassify Mortgage Finance companies from the Banks Industry
Group to the Financial Services Industry Group.
▪

Merge Diversified Banks, Regional Banks and Thrifts/Saving Banks into one Sub-Industry named Banks.

▪

Discontinue the Thrifts and Mortgage Finance Sub-Industry under the Banks Industry Group and create a new Sub-Industry under the
Diversified Financials Industry Group (to be renamed Financial Services) named Commercial & Residential Mortgage Finance.

Proposed structure:

SectorIndustry Group Industry
Banks
Banks

Thrifts & Mortgage
Finance (Discontinue)
Financials
Financial ServicesFinancial Services(Rename)(Rename)Sub-Industry
Diversified Banks (Discontinue)
Regional Banks (Discontinue)
Banks (New)Company examples*
JPMorgan Chase, Truist Financial

Thrifts & Mortgage Finance (Discontinue)-

Diversified Financial Services (Rename)Multi-Sector Holdings

Bajaj Finserv, Orix
Berkshire Hathaway, Investor AB
Chailease Holding, PiramalEnterprises

Specialized FinanceTransaction and Payment Processing Services(New)
Commercial & Residential Mortgage Finance(New)

Visa, Mastercard, PayPal Holdings
Walker & Dunlop, Federal
Agricultural Mortgage, UWM
Holdings

Note: Changes to the GICS structure are highlighted in red*The purpose of identifying companies as examples is only to provide context to the discussion. It does not imply that the company is being reclassified, even if changes are made to the GICS structure. MSCI and S&P DJI reserve the right to classify companies as
they see appropriate.

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PROPOSED DEFINITIONS
Sub-Industry

Proposed definitions

Banks

Commercial banks, savings banks and thrifts mainly engaging in conventional banking operations suchas retail banking, corporate lending, and originating various loans comprised of residential andcommercial mortgage loans.

Commercial & Residential Mortgage
FinanceFinancial companies providing commercial and residential mortgage financing and related mortgage
services. This Sub-Industry includes non-deposit funded mortgage lending institutions, building
societies, companies providing real estate financing products, loan servicing, mortgage broker
services, and mortgage insurance.

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DISCUSSION TOPICS
1. Should Diversified Banks, Regional Banks and Thrifts/Savings Banks be merged into one Sub-Industry named Banks?

2. Should Mortgage Finance companies servicing both commercial and residential real estate properties move from the Banks Industry
Group to the Financial Services Industry Group?

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CLASSIFICATION OF REITs
Current Classification:

Rationale for the review:

Sector▪ Most companies structured as Real Estate
Investment Trusts (REITs) invest in distinct
property types such as retail properties, data
centers and telecom towers.

Financials

SectorIndustry Group Industry
Sub-Industry
Mortgage Real
Diversified
Estate Investment Mortgage REITs
Financials
Trusts (REITs)
Industry Group Industry

Real Estate Real Estate

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Sub-Industry

Diversified REITs
Industrial REITs
Hotel & Resort REITs
Equity Real Estate
Office REITs
Investment Trusts
Health Care REITs(REITs)Residential REITs
Retail REITs
Specialized REITs© 2021 All rights reserved.
Information Classification: GENERAL▪ Approximately 75% of the companies classified
as REITs focus on unique property types while
the remaining companies invest in diversified
properties.
▪ Based on the feedback received from various
market participants and clients, there is interestin creating additional granularity for REITs tohelp investors track the increased
specialization in the REITs space.

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PROPOSAL
Introduce more granularity to Equity REITs in the GICS structure.
▪

▪

Split Residential REITs into 2 Sub-Industries▪

Multi-family Residential REITs▪

Single-Family Residential REITs

Create 4 new Sub-Industries from Specialized REITs▪

Self storage REITs▪

Telecom Tower REITs​▪

Timber REITs▪

Data Center REITs​

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PROPOSED STRUCTURE
SectorReal Estate

Industry Group

Equity Real Estate
Investment Trusts(REITs)(New)

Industry
Sub-Industry
Diversified REITs(New)
Diversified REITs
Industrial REITs(New)
Industrial REITs
Hotel & Resort REITs(New)
Hotel & Resort REITs

Company examples*

Office REITs (New)
Health Care REITs(New)

Office REITs

Alexandria Real Estate, Boston Properties

Health Care REITs
Multi-family Residential REITs(New)
Single-Family Residential REITs(New)

Welltower, Ventas
American Campus Communities, Apartment
IncomeRetail REITs
Self Storage REITs (New)Telecom Tower REITs​ (New)Timber REITs​ (New)Data Center REITs (New)Specialized REITs (Definition
update)Simon Property Group, Realty Income
Public Storage, Life Storage
Crown Castle, SBA Communications
Weyerhaeuser, Rayonier
Equinix, Digital Realty Trust

Residential REITs(New)

Retail REITs (New)Specialized REITs(New)

WP Carey, VEREIT
Prologis, Goodman Group
Host Hotels & Resorts, Ryman Hospitality
Properties

Invitation Homes, UMH Properties

Vici Properties, Lamar Advertising

Note: Changes to the GICS structure are highlighted in red*The purpose of identifying companies as examples is only to provide context to the discussion. It does not imply that the company is being reclassified, even if changes are made to the GICS structure. MSCI and S&P DJI reserve the right to classify companies as
they see appropriate.

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PROPOSED DEFINITIONS
Sub-Industry
Multi-family Residential REITs
Single-Family Residential REITs
Self storage REITs
Telecom Tower REITs​

Timber REITs​
Data Center REITs

Other Specialized REITs

spdji.com

Proposed definitions
Companies or Trusts engaged in the acquisition, development, ownership, leasing, management andoperation of apartments and other multi-family housing including student housing.
Companies or Trusts engaged in the acquisition, development, ownership, leasing, management andoperation of single-family residential housing including manufactured homes.
Companies or Trusts engaged in the acquisition, development, ownership, leasing, management andoperation of self storage properties.
Companies or Trusts engaged in the acquisition, development, ownership, leasing, management andoperation of telecom towers and related structures that support wireless telecommunications.
Companies or Trusts engaged in the acquisition, development, ownership, leasing, management andoperation of timberland and timber-related properties.
Companies or Trusts engaged in the acquisition, development, ownership, leasing, management andoperation of data center properties.
Companies or Trusts engaged in the acquisition, development, ownership, leasing, management andoperation of properties not classified elsewhere. This Sub-Industry includes REITs that manage andown properties such as natural gas and crude oil pipelines, gas stations, fiber optic cables, prison,
automobile parking, and automobile dealerships.

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Information Classification: GENERAL

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29

DISCUSSION TOPIC
1. Should additional Sub-Industries for REITs be added to increase the granularity of Equity REITS in the GICS structure?

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CLASSIFICATION OF TRANSPORTATION
Current classification:
SectorRationale for the review:

Industry Group Industry

Sub-Industry▪

The Trucking Sub-Industry includes a mix of companies
providing cargo/goods and passenger ground transportation
services. This includes truck transportation services,
household and office goods moving services, taxi and ridesharing companies and platforms, and motor vehicle rental
companies.

▪

The name ‘Trucking’ is no longer descriptive of the diverse
group of companies in this Sub-Industry.

▪

The passenger ground transportation business has evolved
over the years through the development of online apps andmarketplaces for taxis and on-demand ride sharing, as wellas consumer bicycle and scooter rental platforms. In
addition, these companies are distinct from those offering
cargo/goods ground transportation services.

Air Freight &Logistics
Air Freight & Logistics

Industrials

Transportation

Airlines

Airlines

MarineMarineRoad & Rail

Railroads
Trucking

Airport Services
Transportation
Infrastructure Highways & Railtracks

Marine Ports & Services

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PROPOSAL
Passenger land transportation is distinct from cargo/goods land transportation. Therefore, the existing Trucking Sub-Industry will undergo
a definition change, and one new Sub-Industry will be created called Passenger Ground Transportation.
Proposed Structure:
SectorIndustry Group

Industry

Sub-Industry

Company examples*

Air Freight & Logistics

Air Freight & Logistics

United Parcel, Fedex

Airlines

Airlines

Southwest Airlines, Delta Air Lines

Marine Transportation (Rename) Marine Transportation (Rename)
Rail Transportation (Rename)
Industrials

Transportation

Ground Transportation (Rename)

Transportation Infrastructure

Trucking (Definition Update)Passenger Ground Transportation(New)
Airport Services
Highways & Railtracks
Marine Ports & Services

AP Moller Maersk, Kuehne & Nagel
Union Pacific, Canadian National
Railway
Old Dominion Freight, J.B. Hunt
Transport Services
Uber Technologies, Lyft, ALD, SixT SE
Airports Of Thailand, Aena
Transurban Group, Atlantia
Adani Ports and SEZ, Shanghai
International Port

Note: Changes to the GICS structure are highlighted in red*The purpose of identifying companies as examples is only to provide context to the discussion. It does not imply that the company is being reclassified, even if changes are made to the GICS structure. MSCI and S&P DJI reserve the right to classify companies as they
see appropriate.

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Information Classification: GENERAL

msci.com32

PROPOSED DEFINITIONS
Sub-Industry

Proposed definitions

Trucking

Companies providing ground transportation services for goods and freight.
Companies providing passenger ground transportation and related services, including bus, taxi,
vehicle rental, ride sharing and on-demand ride sharing platforms, and other passenger logistics.

Passenger Ground Transportation

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DISCUSSION TOPIC
1. Should the definition of Trucking be updated to include only freight ground transportation, with passenger transportation mov ed to a
new Sub-Industry called Passenger Ground Transportation?

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UPDATE TO GICS DEFINITION: CLASSIFICATION OF CANNABIS
▪
▪

▪
▪

▪

The cannabis industry has expanded rapidly in recent years due to an ease in regulations and increased discovery of uses for a variety of
applications.
There are companies involved in cannabis cultivation, cannabis distribution including dispensaries, the processing and distribution of
cannabis plants, and the creation of cannabis derivative products with diverse applications across the healthcare, recreational,
industrial, and consumer product markets.
The legality of recreational usage is still inconsistent globally, whereas legal medicinal use is more widespread. Additional uses are stillin a nascent stage.
The definition of Pharmaceuticals is being updated to include companies primarily engaging in the research, development, andmanufacturing of cannabis-based drugs used to treat diseases. The Pharmaceuticals Sub-Industry will exclude companies primarily
manufacturing non-medicinal marijuana and other cannabis products used for non-medical purposes which are classified based on enduse.
MSCI and S&P Dow Jones Indices will continue to monitor this industry.

Update in GICS definition:

SectorIndustry Group

Health Care

Pharmaceuticals, Biotechnology & Life
Sciences

Sub-Industries

Pharmaceuticals

Industry
Biotechnology
Pharmaceuticals
Life Sciences Tools & Services

Sub-Industries
Biotechnology
Pharmaceuticals (Definition update)Life Sciences Tools & Services

Proposed definitions
Companies engaged in the research, development or production of pharmaceuticals including
cannabis-based drugs used for medicinal purposes and veterinary drugs. This Sub-Industry excludes
manufacturers of other cannabis-based products that are classified based on their end-use.

Note: Changes to the GICS structure are highlighted in red

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NOTICE AND DISCLAIMER
This document has been prepared by MSCI and S&P Dow Jones Indices LLC and its affiliates (“S&P Dow Jones Indices”) solely for informational purposes. All of the information contained herein,
including without limitation all text, data, graphs, charts (collectively, the “Information”) is the property of MSCI, S&P Dow Jones Indices, or their respective affiliates. The Information may not be
reproduced or redisseminated in whole or in part without prior written permission from MSCI and S&P Dow Jones Indices.

None of the proposals or alternatives set forth herein has been adopted by MSCI, S&P Dow Jones Indices or Standard & Poor’s F inancial Services LLC (“S&P”), an affiliate of S&P Dow Jones Indices,and there is no assurance that they may be considered or adopted, in whole or in part, by any such party.
The Information may not be used to create derivative works or to verify or correct other data or information. For example (but without limitation), the Information may not be used tocreate indices, databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or marketing of any securities, portfolios, financial products
or other investment vehicles utilizing or based on, linked to, tracking or otherwise derived from the Information.
The user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NEITHER MSCI, S&P DOW JONES INDICES, S&P, NOR ANY OF THEIRRESPECTIVE AFFILIATES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION (OR THE RESU LTS TO BE OBTAINED BY THE USE
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FITNESS FOR A PARTICULAR PURPOSE) WITH RESPECT TO ANY OF THE INFORMATION.
Without limiting any of the foregoing and to the maximum extent permitted by applicable law, in no event shall MSCI, S&P Dow Jones Indices, S&P or any of their respective affiliates
have any liability regarding any of the Information for any direct, indirect, special, punitive, consequential (including los t profits) or any other damages even if notified of the possibility ofsuch damages.
Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past
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None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle.

The Information does not, and is not intended to, recommend, endorse, approve or otherwise expresses any opinion regarding any issuer, security, financial product or trading strategy
and none of the Information 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 Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and S&P. “Global I ndustry Classification Standard (GICS)” is a service mark of
MSCI and S&P.

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