MSCI is renaming over 100 ESG indices to align with incoming sustainability product naming rules in Europe and the UK.
The indices – which include the MSCI World ESG Screened index, the MSCI Europe ESG Screened index and the MSCI USA ESG Screened index – will drop ESG from their titles following the outcome of a recent consultation.
The move comes after the European Securities and Markets Authority (ESMA) updated its guidelines on ESG fund naming rules last month, setting a November deadline.
Meanwhile, the UK’s Sustainability Disclosure Regulations (SDR) had stated the rules are set to come into effect on 2 December, but recently granted ‘temporary flexibility’ until 2 April for firms to comply with the rules.
Previous index name | New index name |
MSCI ESG Leaders indices | MSCI Selection indices |
MSCI ESG Screened indices | MSCI Screened indices |
MSCI ESG Universal indices | MSCI Universal indices |
MSCI ESG Focus indices | MSCI Focus indices |
MSCI Sustainable Impact indices | MSCI Sustainable Development indices |
A spokesperson from MSCI said:“Through this decision MSCI will continue to provide its global client base with support to meet local regulatory requirements, in this case aligning with new rules on naming sustainability-related products in the EU and the UK.”
Close to half of UK sustainable funds impacted by the Financial Conduct Authority’s (FCA) SDR naming rules will be ETFs, according to research from FE fundinfo, while only 21% of ETFs and index funds will be effected, Morningstar Sustainalytics said.
