MSCI ditches ESG label from indices to comply with EU and united kingdom naming rules

MSCI, a leading provider of global equity indexes, has announced changes to the naming and marketing rules of its various indices. The MSCI ESG Leaders, ESG Screened, ESG Universal, and ESG Focus indices will no longer include the ESG (Environmental, Social, and Governance) tag in their names. Concurrently, the MSCI Sustainable Impact indices will be renamed to MSCI Sustainable Development indices. This decision, which is set to take effect from February 3, 2025, follows consultations with MSCI s global client base. The move aims to align with new rules on sustainable and responsible investing (SRI) naming and marketing. In addition, the Financial Conduct Authority (FCA) has decided to allow temporary flexibility in the naming and marketing rules for SRI funds. This measure is intended to provide a smoother transition for fund managers and investors as they adapt to the new regulations. Overall, these changes reflect the growing importance of sustainable investing and the need for consistent and clear communication in the financial industry. By aligning with new rules and providing temporary flexibility, MSCI and the FCA aim to support investors and fund managers in their efforts to incorporate ESG factors into their investment decisions.

Source: investmentweek.co.uk
Published on 2024-09-23