Bloomberg launches climate tilted bond indices for eco-conscious investors

Bloomberg

Bloomberg, a leader in finance, software, data, and media, has announced the launch of the Bloomberg Government Climate Tilted Bond Indices.

This innovative benchmark family is tailored for government bond investors seeking exposure to the transition to a low-carbon economy, highlighting Bloomberg’s commitment to sustainable finance.

The development of these indices reflects a growing demand among investors for financial products that not only offer returns but also contribute positively to the climate transition. By focusing on countries that incorporate climate transition objectives into their strategies, Bloomberg is at the forefront of supporting investors who are looking to make a difference with their investment choices.

Bloomberg is renowned for its comprehensive range of financial services, including its flagship fixed income benchmarks. These services are designed to meet the needs of a diverse client base, from individual investors to large institutions, by providing accurate, up-to-date financial data and analysis.

The Bloomberg Government Climate Tilted Bond Indices are distinguished by their unique approach to weighting countries based on their preparedness for a low-carbon future. Utilizing Bloomberg Sustainable Finance Solutions and BloombergNEF (BNEF) data, these indices offer a nuanced perspective on climate transition readiness, encompassing carbon transition, power sector transition, and climate policy.

These indices are part of Bloomberg’s ongoing efforts to provide market participants with innovative solutions that align with their climate objectives. By balancing climate change considerations with market liquidity and concentration risks, Bloomberg ensures that these benchmarks remain both relevant and practical for investors.

The suite of 14 indices covers a wide range of geographic and currency domains, offering investors a comprehensive tool for benchmarking, asset allocation, and product creation in alignment with their climate-focused investment strategies.

In addition to the indices, Bloomberg offers investors the ability to create custom indices to meet specific portfolio objectives or to seek climate solutions within broader fixed income indices. This flexibility underscores Bloomberg’s commitment to innovation and to supporting investors’ evolving needs.

Bloomberg Index Services Limited’s Head of Sustainable Indices, Chris Hackel, emphasized the importance of this launch, stating, “The newly launched Bloomberg Government Climate Tilted Bond 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. We’re excited to continue our collaboration with Bloomberg Sustainable Finance Solutions and BNEF to bring innovative solutions to the market that meet investors’ climate objectives across sectors and asset classes.”

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