The measure is part of the Fonds’ commitment to reduce the carbon footprint of its public investments by 25% between now and 2025
Montréal, December 6, 2018 – As part of its plan for a just energy transition, the Fonds de solidarité FTQ is the first investor to announce that it will integrate the MSCI World Low Carbon ESG Target Screened Index in the management of a 1,3 billion C$ portfolio, by the end of its financial year on May 31, 2019. The new index will contribute to the Fonds’ commitment to reduce the carbon footprint of its investments in public companies by 25% between now and 2025.
“The Fonds de solidarité FTQ was looking for a benchmark that integrated both ESG and low carbon considerations, and MSCI delivered. The new MSCI World Low Carbon ESG Target Screened Index shows that innovation can be part of the financial services industry’s efforts to combat climate change,” said Mario Tremblay, Vice-President for Public and Corporate Affairs at the Fonds de solidarité FTQ, and member of the Government of Québec’s COP24 delegation. “This new index will be an important part of our efforts to reduce the Fonds’ carbon footprint, while doing our part to ensure that the energy transition is just and equitable for all workers and communities.”
Based on the MSCI World Index, the MSCI World Low Carbon ESG Target Screened Index includes large and mid-cap stocks across 23 developed market countries. The base methodology is one of carbon footprint reduction, including standard exclusions of tobacco, controversial weapon, red flag and thermal coal stocks, and is overlaid with an ESG rating improvement.
“The MSCI World Low Carbon ESG Target Screened Index integrates extensive environmental, social and governance evaluation of companies into a single index construction process. The objective of the index is to reduce carbon exposure by at least 70 percent versus the standard MSCI World Index,” said Jana Haines, Head of Equity Index Products for the Americas at MSCI. “The index can act as a benchmark for institutional investors who wish to manage potential risks associated with the transition to a low carbon economy.”
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a development capital investment fund that channels the savings of Quebecers into investments. As at May 31, 2018, the organization had $14.3 billion in net assets, and through its current portfolio of investments has helped create and protect 194,746 jobs. The Fonds is a partner in 2,839 companies and has 667,417 shareholder-savers.
About MSCI, Inc.
For more than 45 years, MSCI’s research-based indexes and analytics have helped the world’s leading investors build and manage better portfolios. Clients rely on our offerings for deeper insights into the drivers of performance and risk in their portfolios, broad asset class coverage and innovative research.
Our line of products and services includes indexes, analytical models, data, real estate benchmarks and ESG research.
MSCI serves 99 of the top 100 largest money managers, according to the most recent P&I ranking.
For more information, visit us at www.msci.com or at www.msci.com/esg-indexes.