Bloomberg ESG and Climate Indices
Benchmarks for sustainable investment strategies
Sustainability approaches are evolving rapidly and gaining more sophistication with climate-related spending now exceeding $500 billion a year in the U.S.*
Bloomberg has long been a leader in providing a global suite of sustainable indices and customization capabilities to help investors navigate sustainability and climate themes across asset classes, countries, regions, industries, sectors and factors to address changing market conditions.
*Source: Bloomberg Intelligence
Cross-asset coverage
Bloomberg provides 500+ cross-asset indices covering climate, ESG, sustainable debt and more to help investors address sustainable finance initiatives.
Customization capabilities
Our deep expertise in index design, familiarity with climate data and a sophisticated quant modeling team supports our consultative approach to building bespoke indices.
Dedicated research teams
Bloomberg’s index team and best-in-class ESG and climate research teams collaborate to produce and maintain strategic, and often groundbreaking, benchmarks.
Best-in class sustainability data
Bloomberg Indices are backed by the highest-quality data including coverage of more than 16,000 global companies to help investors seize economic opportunities, and mitigate risk.
Transparent methodology
Our rules-based methodologies provide clear guidelines for construction, eligibility, corporate action treatment, rebalances and segmentation providing users with clear predictive broad-based market indices.
Open architecture
Employing an open architecture approach to ESG benchmarks, we partner with leading ESG ratings, framework and data providers to create myriad comprehensive, cross-asset index alternatives.
KEY STATS
AUM tied to Bloomberg Sustainable FI Indices
cross-asset indices covering climate, ESG sustainable debt
Performance
ESG Indices
Don’t get left behind
After decades of promise, ESG assets are on track to exceed $53 trillion by 2025, driven by investor demand, government regulation and societal pressure. Bloomberg ESG Indices include both proprietary and joint offerings.
The indices use the flagship Bloomberg Global Aggregate Index, the Bloomberg Sustainable Finance Group’s green, social and sustainability bond indicators, and fields that show alignment with the International Capital Market Association Green Bond, Social Bond and Sustainability Bond Principles and Guidelines.
Bloomberg has partnered with MSCI ESG Research to create the Bloomberg MSCI ESG Fixed Income Indices, the market’s first comprehensive fixed income index family incorporating measures of ESG and risk.
The index family includes a variety of approaches to ESG integration including Socially Responsible Investment (SRI) screening, Sustainability (including only ESG best-in-class issuers), and ESG-weighting, as well as the Bloomberg MSCI Global Green Bond Indices, and more.
Bloomberg has worked with Rockefeller Asset Management to create the Bloomberg Rockefeller US All Cap Multi-Factor ESG Improvers Index. The index seeks exposures to ESG Improvers, quality and low volatility attributes with minimal tracking error and sector deviations relative to the Bloomberg US 3000.
The Bloomberg Goldman Sachs Global Clean Energy Index is designed to give ESG investors access to a multi-sector set of highly exposed “clean-energy enablers” — companies that are progressing the transition to clean energy.
The benchmark was developed using a proprietary approach informed by insights from BloombergNEF (BNEF) analysts and is a modified free float-adjusted market capitalization-weighted index tracking the performance of more than 175 global equities.
Climate Indices
Climate change?
Index change.
At Bloomberg, we believe that high quality data, coupled with transparent climate-driven investment approaches can lead the way to a greener future. Bloomberg enables clients to find opportunities and manage risks related to the transition to a low-carbon, sustainable economy with global cross-asset low-carbon indices, customization capabilities and datasets.
Bloomberg Government Climate Bond Indices are a new benchmark family for government bond investors seeking exposure to the transition to a low-carbon economy. The indices provide investors with exposure to Bloomberg’s flagship fixed income benchmarks with an enhanced focus on countries incorporating climate transition objectives.
Standard and custom Climate Tilted Indices The indices use quantitative climate scores developed by Bloomberg Sustainable Finance Solutions (“SFS”) to adjust the market value weights according to the Government Climate Score or any of the subscores. The Bloomberg Government Climate Scores, including the underlying pillars and factor data, can be used to create custom indices that meet investor-specific portfolio objectives.
Bloomberg’s equity and corporate fixed income Paris-Aligned Indices deliver the transparency and insight investors need to measure and align investment strategies with the Paris Climate Agreement’s decarbonization targets.
Low-carbon ESG emissions estimation model
Bloomberg Paris-Aligned Indices employ Bloomberg’s low carbon ESG emissions estimation model, which uses as reported data and data estimates on over 50,000 companies. The model also provides a distribution of estimates and confidence score allowing for the use of more conservative estimates. Bloomberg’s approach to greenhouse gas (GHG) estimation applies the United Nation’s precautionary principle to ensure corporate GHG data is not underestimated and to incentivize companies to commence or enhance reporting of their GHG emissions
Benchmarks that exceed minimum requirements
Bloomberg Paris-Aligned and Climate Transition Indices exceed the minimum requirements of the EU, first introduced in 2019 as tools to accompany the transition to a low carbon economy by the Technical Expert Group of the European Commission.
Bloomberg and MSCI have collaborated to offer joint climate benchmarks that are designed to meet and exceed the minimum standards of the EU Paris-Aligned Benchmark (PAB) label. They combine Bloomberg’s extensive fixed income indices family with MSCI’s data, analytics and emissions model.
Bloomberg MSCI Corporate Paris-Aligned Indices
The Bloomberg MSCI offering includes Paris-Aligned and Climate Transition indices across Global, Euro, and US Corporate regions. To ensure the benchmarks meet or exceed the minimum PAB/CTB criteria, the indices set an initial 50%/30% reduction of GHG emissions relative to standard Bloomberg corporate indices, followed by an annual 7.5% decarbonization relative to the baseline emissions. The emissions reductions are achieved through an exclusion-based process or through optimization.
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Cross-asset coverage
Bloomberg’s index team delivers high-quality benchmarks across asset classes.