Announcement for April 10, 2026 at 08:51 PM GMT

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

CONCLUSIONS FROM THE CONSULTATION ON POTENTIAL ENHANCEMENTS TO THE MSCI CLIMATE PARIS ALIGNED PAB INDEXES METHODOLOGY
(Re: Announcement dated February 26, 2026)

MSCI announced today the conclusions from its recent consultation on potential enhancements to the MSCI Climate Paris Aligned PAB Indexes Methodology.

Most market participants were supportive of the proposed enhancements, highlighting the importance of removing overlapping climate objectives and ensuring long-term index viability.

Based on market feedback, MSCI will implement the following enhancements:

1: The Aggregate Climate Value-at-Risk (CVaR) objective will be removed, and the Physical Risk CVaR objective will be modified to a minimum reduction of 30% (previously 50%).
Clients generally preferred retaining the physical risk objective, albeit at a lower target, to reduce its impact on tracking error.

2: The minimum increase of 10% in the weighted average Low Carbon Transition Score will be removed.

3: The minimum increase of 20% in the aggregate weight of Companies Setting Targets will be removed.

4: The minimum average reduction in GHG Intensity (per annum) will be lowered to 7% (previously 10%), effective from the November 2026 Index Review.

5: The current minimum increase in the weighted average Green Revenue of 100% relative to the relevant Parent Index will be maintained, with the calculation of green revenue excluding IT Optimization & Services.
Market participants generally supported maintaining the current green revenue objective, noting that the changes proposed in the Green Taxonomy consultation by MSCI Solutions are expected to reduce the impact of applying the 100% target increase on tracking error and index concentration. The removal of IT Optimization & Services from the calculation of green revenue in the MSCI Climate Paris Aligned PAB Indexes will be applied irrespective of the outcome of the Green Taxonomy consultation and will be implemented alongside other enhancements.

6: In cases of optimization infeasibility, the linear asset bounds may be relaxed alongside the existing alternating relaxation of one-way index turnover and active sector-weight constraints. The current +/-2% limit will be maintained as a starting point, with potential relaxation in steps of 1% up to a maximum of +/-5%.

Additionally, market participants welcomed the set of technical enhancements that MSCI intends to introduce to improve index maintenance.

All enhancements will be implemented as of the November 2026 Index Review.

MSCI acknowledges feedback from certain market participants stating a preference to apply granular oil & gas screens in the MSCI Climate Paris Aligned PAB Indexes methodology. MSCI will review this feedback and may consider it in future consultations.

MSCI has also received feedback from certain market participants on postponing the implementation of the enhancements to 2027, considering there are references to Paris Aligned Benchmarks in the European Commission's proposal for amendments to the Sustainable Finance Disclosure Regulation (SFDR). MSCI will continue to monitor regulatory developments and may consider further consultation if needed.

MSCI will communicate separately with relevant clients regarding the implementation of these enhancements in custom indexes, which at this stage is expected to also take place as of the November 2026 Index Review.

MSCI will also provide additional details on the implementation of these enhancements, including technical aspects and the updated MSCI Climate Paris Aligned PAB Indexes Methodology book, closer to the implementation date.

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

                                     End of announcement.
                                     Further announcements may occur as needed.