Bloomberg has announced the launch of the Bloomberg Commodity Carbon Tilted Index.

The index is designed to provide a reduced carbon profile while maintaining exposure to a diversified universe of physical commodities. In measuring carbon emissions, it overweights commodities with a lower carbon footprint while minimizing tracking error to Bloomberg’s BCOM parent index.

Allison Stone, Head of Multi-Asset Product, Bloomberg Index Services says, “The BCOM Carbon Tilted Index is designed with investors’ complex needs in mind. There is a growing want to support the transition to a low-carbon economy while remaining aligned with their investment goals across all asset-classes. Utilizing a foundation of Bloomberg carbon research, this index has been constructed using an innovative methodology that speaks to priorities of sustainability and diversification, while still providing the liquidity that commodities investors commonly seek. We are proud to continue to deliver new indices that meet this challenge and can help take the market forward.”

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