Announcement for March 28, 2025 at 08:33 PM GMT

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

CONCLUSIONS FROM THE CONSULTATION ON DECARBONIZATION TRAJECTORY ADJUSTMENTS FOR MSCI EQUITY CTB/PAB INDEXES

MSCI announced today the conclusions from its recent consultation on decarbonization trajectory adjustments for MSCI Equity CTB/PAB indexes.

During the consultation, most market participants were supportive of the proposed default approach to adjust the targeted decarbonization trajectory of MSCI Equity CTB/PAB indexes for the effects of past changes to the calculation methodology of GHG intensity. Such adjustments will be made in line with Article 8(2) of Commission Delegated Regulation (EU) 2020/1818, whenever a new base date is set following significant changes in the calculation methodology of GHG intensity. The significance of the changes will be established through quantitative and/or qualitative criteria as described in the consultation materials.

Based on the feedback received, MSCI will apply the proposed default approach to the following standard MSCI index methodologies:

- MSCI EU CTB/PAB Overlay Indexes Methodology

- MSCI Climate Change Indexes Methodology

- MSCI Climate Paris Aligned Indexes Methodology

MSCI will send a further communication to confirm the implementation timeline by June 30, 2025. This enhancement will not be implemented as part of the May 2025 Index Review. MSCI will also update the MSCI EU CTB/PAB Index Framework by the end of April 2025, providing further details on the conditions for and approach to decarbonization trajectory adjustments.

In addition, certain market participants have expressed the need to allow for potential customized approaches to adjust the decarbonization trajectory in custom CTB/PAB indexes, for example to remain conservative and keep the decarbonization trajectory unchanged in cases where a methodology change would justify a relaxation of the trajectory. MSCI will send a separate communication to custom index clients in due course regarding the implementation of changes in their indexes and will discuss potential customizations with clients upon request.

Moreover, several market participants have highlighted the need for additional disclosures and transparency upon adjustments to the decarbonization trajectory. MSCI will carefully review this feedback and aims to provide relevant disclosures and transparency around decarbonization trajectory adjustments.

The updated methodology books for the MSCI EU CTB/PAB Overlay, MSCI Climate Change and MSCI Climate Paris Aligned Indexes, as well as the list of impacted indexes, will be published prior to the implementation of the change.

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

                                     End of announcement.
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