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Bloomberg ESG and Climate Indices

Benchmarks for sustainable investment strategies

ESG

ESG indices include companies that meet certain criteria for environmental, social and governance standards. Indices in this category look to reward companies with better ESG credentials as well as provide indices that exclude companies active in controversial products or align with investors’ values.

Climate

Climate indices meet the needs of investors with net-zero or climate change mitigation objectives. Bloomberg offers industry-standard, global cross-asset climate and low-carbon indices that can be further customized with respect to liquidity requirements, decarbonization trajectory, additional ESG exclusions and more.

Impact

Impact indices’ constituents meet specific sustainable objectives that are intended to generate positive, measurable social and environmental impact alongside a financial return.

Thematic

Thematic indices track the performance of companies that are tied to specific investment themes. Bloomberg Thematic Indices include clean energy, transition metals, carbon tilted and more.


KEY STATS

$
11.7
B+

AUM tied to Bloomberg Sustainable FI Indices

500
+

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.

Resources

Index Documentation
Bloomberg G10 Currency Futures Tracker Indices
Bloomberg US Dollar Total Return Index Fact sheet
Bloomberg US Dollar Forward Index Fact Sheet
Bloomberg 6M EOM Rolling FX Forward Indices
Bloomberg 3M EOM Rolling FX Forwards Indices
Bloomberg Asia Dollar Index Methodology
Bloomberg 1M EOM Rolling FX Forwards Indices
Bloomberg Rolling FX Forward Indices Methodology
Bloomberg Emerging Markets Large, Mid & Small Cap Currency Implied Yield Index
Bloomberg Currency Implied Yield Indices Methodology
Bloomberg Euro Spot Index Fact Sheet
Bloomberg US Dollar Forward Index Methodology
Bloomberg Forward FX Index Family Methodology
Bloomberg US Dollar Total Return Index Methodology
Bloomberg Currency Indices Methodology
Bloomberg Spot FX Index Methodology
BISL Derived FX Data Methodology
Bloomberg Equally Weighted Spot FX Indices Fact Sheet
Bloomberg Asia Dollar Index Fact Sheet
Bloomberg Pound Index Fact Sheet (POUND)
Bloomberg Dollar Spot Index Fact Sheet (BBDXY)

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