Index provider MSCI has announced the release of eight climate-linked indexes based on key tenets of the Paris Climate Pledge.
The MSCI Climate Paris Aligned Index Suite is designed to help investors reduce their transition and physical risks, identify green opportunities and align their investment strategies with the 1.5 degree warning scenario highlighted in the Paris agreement, according to a statement from MSCI.
“Climate risks, whether physical or related to the transition to a lower carbon economy, are changing the risk-return profile of companies and industries,” said Remy Briand, head of ESG at MSCI.
“Extreme weather events pose new risks to companies’ assets, while carbon-intensive industries are being forced to undergo transformational change.”
The latest index is also looking to appeal to those investors wanting a strategy that goes beyond reducing carbon intensity, added Briand.
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