Bloomberg and MSCI have announced the launch of the first indices in their joint Climate Benchmark offering.
The Bloomberg MSCI Global, Euro and US Corporate Paris-Aligned Indices are designed as a benchmark for investors to assess the performance of corporate bonds relative to the minimum standards of the EU Paris-Aligned Benchmark label.
The indices combine Bloomberg’s fixed income indices with MSCI’s Climate data for investment-grade, fixed-rate, and global, US or EUR-denominated corporate bonds. Each index sets an initial 50% reduction of absolute greenhouse gas relative to the standard Bloomberg parent corporate index, followed by an annual 7.5% decarbonization relative to the baseline emissions. These emissions reductions are achieved by excluding the largest GHG emitting companies.