FIND A FUND
ASSET CLASS
PRODUCT RANGE
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor may not get back the amount originally invested.
Unless otherwise stated, all information is sourced from MSCI and is correct as at 31 December 2018.
The MSCI ESG Enhanced Focus Index range is designed to maximise exposure to companies with positive ESG characteristics while reducing a fund’s carbon intensity and maintaining a similar risk and return profile to traditional broad benchmarks.
Explore the steps below to understand the methodology of how the indices are constructed.
Just like the iShares range of ESG Screened ETFs, the ESG Enhanced Focus index range excludes companies which have high potential for negative social and/or environmental impact:
Companies deriving 5% or more revenue from business practices linked to sales and production of thermal coal or oil sands.
Companies deriving revenues from controversial weapons, nuclear weapons, civilian firearms and tobacco.
Companies violating the United Nations Global Compact principles.
Any ongoing controversy regarding a company's operations or products is assessed for the severity of its impact on society or the environment and consequently rated Very Severe, Severe, Moderate, or Minor. Companies involved in Very Severe business controversies are excluded from the investible universe.
The optimisation process aims to maximise exposure to positive ESG scores and simultaneously reduce carbon emissions intensity and potential emissions using the following constrains:
Performance of each index has a target tracking error relative to its parent index.
Developed Markets: 50bps
Emerging Markets: 100bps
This figures represent ex-ante tracking error targets.
The indices target a 30% reduction of carbon emissions intensity (annual carbon emissions divided by annual sales) and potential GHG emissions from fossil fuel reserves (potential carbon emissions divided by market capitalisation.
The indices aim to be sector-diversified and target companies with high ESG ratings in each sector.
Build a sustainable core across key markets and asset classes with iShares MSCI ESG Enhanced ETFs.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.