Business and financial markets information service provider Bloomberg announced today the launch of a series of new indices within its Bloomberg Climate Index Family, including several EU Paris-Aligned Benchmarks (PAB), as well as broad equity, corporate, and sovereign fixed income offerings.
The launch features 7 equity and 12 fixed income indices, across a broad range of market cap and geographic, and corporate and sovereign categories.
Chris Hackel, Head of ESG Indices, Bloomberg, said:
“Investor demand for tools that help them build trustworthy ESG investment products and lower their carbon footprint has never been higher and Bloomberg’s new Climate Index Family provides industry-standard climate benchmarks investors can use with confidence.”
Indices that are labeled as Paris-aligned Benchmarks (PABs) under EU rules must meet criteria for asset selection that results in the index aligning with the long-term climate goals of the Paris Agreement. Criteria include a minimum reduction in greenhouse gas (GHG) emissions intensity of at least 50% compared to the market index, with annual GHG emissions intensity reductions of at least 7%, among others.
Bloomberg’s PAB offering is underpinned by its greenhouse gas (GHG) emissions data on over 50,000 companies, which includes company-reported data and estimates for businesses that do not report their emissions. Bloomberg’s GHG emissions estimate model provides a distribution of estimates and confidence score showing the quality and availability of data for each estimate.
“To be at the forefront of the net zero transition, investors can also rely on Bloomberg’s Paris-Aligned Indices, built using Bloomberg emissions data. We will continue to build upon this family to support customer demand of solutions backed by Bloomberg’s sustainable finance expertise and look forward to working with investors to leverage our ESG data sets to create additional custom climate strategies to meet their specific needs.”
The company stated that the Bloomberg Climate Index Family is available for benchmarking, asset allocation, and product creation purposes and the indices can be customized to meet individual investor needs in terms of liquidity requirements, decarbonization trajectory, and additional ESG exclusions, among others.