US-based software, data and media provider Bloomberg has introduced the Government Climate Tilted Bond Indices to serve as a benchmark family for government bond investors seeking exposure to the climate transition. The indices are designed to adjust country weights in the organisation’s Treasury and Sovereign indices according to Bloomberg’s Government Climate Scores (GOVS). GOVS assesses a government’s degree of preparedness and progress across the climate transition, power sector transition, and climate policy. The launch is made up of 14 indices, including the Global Treasury Climate Tilted Bond Index and Emerging Markets Hard Currency Sovereign Climate Tilted Bond Index. “The newly launched [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 at Bloomberg Index Services.
