Bloomberg has launched the Bloomberg Government Climate Tilted Bond Indices, a new benchmark suite tailored for government bond investors seeking exposure to the transition towards a low-carbon economy.
These indices offer investors access to Bloomberg’s flagship fixed income benchmarks with a focus on countries integrating climate transition objectives.
By adjusting country weights in Bloomberg Treasury and Sovereign indices based on Bloomberg Government Climate Scores (GOVS), the indices provide transparent insights into a government’s readiness for the transition to a low-carbon world.
The GOVS scores, developed by Bloomberg Sustainable Finance Solutions and informed by Bloomberg NEF data, evaluate a government’s progress across three equally weighted pillars: carbon transition, power sector transition and climate policy.
Interview: Closing the infrastructure gap and driving climate transition
“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,” said Chris Hackel, head of sustainable indices, Bloomberg Index Services Limited.
According to the providers, the indices aim to balance climate risks and opportunities while maintaining benchmarks reflecting market liquidity and concentration. Powered by Bloomberg Government Climate Scores, the indices enable the creation of custom indices aligning with investor-specific goals, such as reducing CO2 emissions annually. Investors can leverage these scores and data for climate-focused solutions within broader fixed income indices.
How Japan supports the ‘just transition’
At launch, the indices include 14 distinct offerings, covering a range of segments including global treasury, eurozone inflation-linked, emerging markets sovereign bonds, etc.
