Bloomberg has launched the Bloomberg Government Climate Tilted Bond Indices, offering investors exposure to Bloomberg’s fixed income benchmarks with a specific focus on companies incorporating climate transition objectives.
The benchmark family currently consists of 14 indices.
Country weights are adjusted based on Bloomberg Government Climate Scores (GOVS). These measure the relative preparedness of a government for the low-carbon transition, based on carbon transition, power sector transition and climate policy.
Using these pillars, scores and underlying factor data, users can create custom indices for particular portfolio objectives and identify climate solutions within broader, aggregate-style fixed income indices, the company said.
Chris Hackel, head of sustainable indices at Bloomberg Index Services, commented, “The indices are designed to consider not only a country’s progress against its climate ambitions, but also forward-looking measures of outlook, including investment in renewable energy capacity.”
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