Climate Paris Aligned Indexes Climate Paris Aligned Indexes — for Net-Zero Strategies The MSCI Climate Paris Aligned Indexes are designed to help investors implement net-zero strategies in their portfolios. How can MSCI Climate Paris Aligned Indexes support a net-zero strategy? MSCI has developed a series of indexes to help investors make net-zero part of decision-making at every stage. The MSCI Climate Paris Aligned Indexes are designed to help investors seeking to implement net-zero strategies in their portfolios. The indexes aim to address climate change in a holistic way to reduce minimize their exposure to physical and transition risks of climate change and increase target exposure to sustainable investment opportunities. The indexes are aligned with a 1.5°C temperature-rise scenario and incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) as well as the minimum requirements for the EU Paris Aligned Benchmark. Download Brochure Why MSCI Climate Paris Aligned Indexes? Use of state-of-the-art MSCI Climate analytics data, models including forward looking metrics Supports a net-zero strategy by aligning with a 1.5°C scenario Designed for customization. Can be combined with MSCI’s ESG, Sustainable Impact, Factor and Thematic data Indexes and data sets Designed towards EU Paris Aligned Benchmarks (PAB) minimum requirements MSCI EU PAB Overlay Index methodology available for market cap, factor or ESG indexes -- for investors who are looking for a strict application of the EU regulatory minimum requirements Aims to be fully aligned with the TCFD recommendations by accounting for the portfolio’s exposure to physical and transition risk, as well as increased exposure to climate opportunities The MSCI Climate Paris Aligned Indexes aim to meet and exceed the minimum standards of the EU Paris Aligned Benchmarks (PAB) label: ESG TRANSITION RISK GREEN OPPORTUNITY 1.5°C ALIGNMENT PHYSICAL RISK Controversial Weapons Carbon intensity reduction (Scope 1, 2 and 3) Neutral exposure to high impact sector At least double the Green Revenue exposure Self-decarbonization at 10% Physical Risk Climate VaR is at least 50% lower Societal norms violators Immediate Scope 3 phase-in Higher allocation to companies with credible emission reduction targets Green/fossil fuel-based ratio – 4x higher than parent Neutral Aggregate Climate VaR under 1.5°C Scenario MSCI ESG Controversy Score Underweight companies facing transition risk Significant improvement in Low Carbon Transition (LCT) Score Overweighting of companies providing solutions Lower fossil fuel exposure 50% minimum reduction in Potential Emissions Intensity To view the full methodology, please click here. Want to get in touch to find out more? Talk to our team of climate specialists to learn more about Climate Indexes and our series of Climate and Net-Zero Solutions or to discuss your own Climate objectives. Talk to Our Experts AVAILABLE INDEXES Related Content Understanding MSCI Climate Indexes This product insight and accompanying FAQ from MSCI looks at questions institutions may consider when choosing a climate benchmark, based on whether investors aim to address financial risks and opportunities, incentivize companies to change their business models or steer capital toward ... Access Report MSCI Climate & Net-Zero Solutions To empower investors to analyze and report on their portfolios’ exposures to transition and physical climate risk. Explore More The Net-Zero Knowledge Hub A guide to aligning investment portfolios with global temperature targets. Learn More MSCI Joins the Net Zero Financial Service Providers Alliance We are committed to aligning all relevant services and products with the goal of net zero emissions by 2050 or sooner. Read More Locations Legal Modern Slavery Statement Privacy notice Index regulation Site map Cookies Use of ISO standards Subscribe Contact Us © 2021 MSCI Inc. All rights reserved We use cookies to optimize site functionality and give you the best possible experience. Learn More Accept Cookie Preferences