This week, I kick off my mini-series on the major classification frameworks you’ll find across financial data systems. I’ll be looking at each one in no particular order, but I think it makes sense to begin with the one our clients use most: GICS, the Global Industry Classification Standard developed by S&P and MSCI.
You’ll often see GICS used on its own, though many firms combine it with other classification systems for a more tailored view. Here’s the breakdown:
Primary Use
Investment research, portfolio management, and comparing companies across peers.
Concept
Every publicly traded company gets a GICS classification based on its main business activity, determined by where it earns the bulk of its revenue. “Demand orientation” is driving its place in the overall structure.
Issuance
GICS is issued jointly by MSCI and S&P Dow Jones Indices, two long-standing leaders in global market taxonomy.
Regional use
GICS is used worldwide, with particularly deep adoption in North America.
Regulatory application
While not formally mandated by regulators, GICS has become the de facto global standard. Many regulated benchmarks and indexes are built around it.
Data vendor adoption
Nearly every major data provider distributes or redistributes GICS in some form, along with numerous niche specialists who build on it for specific sectors.
Standard published
You can explore the official details at MSCI and S&P.
Structure
Think of GICS as a four-tiered hierarchy. As of Q4 2025, it breaks down like this:
Lifecycle
The first version was introduced in 1999, starting with 10 sectors, 23 industry groups, 59 industries, and 123 sub-industries. The standard has been revised 10 times since then, with GICS 2023 being the latest.
Example
30 Consumer Staples
– 3020 Food, Beverage & Tobacco
– 302020 Food Products
– 30202030 Packaged Foods & Meats
Takeaway
Even though GICS originated and gained traction in North America, it’s now a global standard across the buy and sell sides alike. If the Classification of Financial Instruments (CFI) defines securities, GICS defines industries. It’s that foundational.
Updates covering additions, renamings, and deletions are released every one or two years, and all are well announced and documented. The most recent update was in fact released at a lower price. Data vendors adopt the updates quickly so that everyone can be aligned on the same structure with efficiency.
