Financial Sector Weighs The Most in The MSCI QSE 20 ESG Index

Qatar Stock Exchange (QSE) has collaborated with MSCI to create the MSCI QSE 20 ESG Index, which addresses the growing demand for sustainable investment tools in the Qatar equity market.

The MSCI QSE 20 ESG Index is designed to identify top securities within the MSCI Qatar IMI Index that demonstrate the best Environmental, Social, and Governance (ESG) profile.

The MSCI QSE 20 ESG Index methodology uses a tilt approach to index weightings based on MSCI ESG Rating (AAA to CCC) and MSCI ESG Rating Trend (e.g., whether a company is improving its rating).

The Index is constructed by applying the following steps. Firstly, the companies that have severe ESG controversies are excluded. Secondly, ESG re-weighting factor is defined to reflect an assessment of both the current ESG profile and the trend in that profile.

The financial sector weighs the most in the Index, contributing for 68% of its market capitalization, led by companies such as Qatar National Bank and Al Rayan Bank.

In the next post, we will be looking at the top five individual constituents of the Index.

Stay tuned and follow @Sahmik to find out more.

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