Bloomberg Introduces Global Aggregate Green, Social, and Sustainability Bond Indices
Bloomberg has announced the addition of the Bloomberg Global Aggregate Green, Social, and Sustainability Bond Indices to its suite of leading fixed income ESG indices.
The indices use the Bloomberg Global Aggregate Index, the Bloomberg Sustainable Finance Group's green, social, and sustainability bond indicators, and fields that show compliance with the International Capital Market Association's Green Bond, Social Bond, and Sustainability Bond Principles and Guidelines.
By launching the indices with datasets from Bloomberg's ESG data team, which has won multiple awards, Bloomberg Terminal clients will also get more transparency into the underlying bond documentation, such as the use of proceeds allocation to the eligible project categories and subcategories, as well as alignment to the UN Sustainable Development Goals, which will make it easier to integrate performance and attribution into portfolio management workflows.
A new field in Bloomberg Terminal called "Sustainable Index Eligibility Indicator" lets users look at securities that are already in the index as well as those that are about to be taken out.
A dedicated Bloomberg fixed income and ESG data team researches and maintains the universe of eligible instruments, which includes Corporates, sovereign, supranational and agency bonds (SSAs), Municipals, and Structured Products, to ensure securities are reviewed and appropriately tagged on time, using Bloomberg's extensive data gathering and processing technologies.
All securities are looked at more closely to ensure the issuer's filing of impact and allocation reports confirms that reporting is still going on. This process makes a large group of sustainable securities that can be added to the index.
Jonathan Gardiner, Sustainable Indices Product Manager, Bloomberg Indices, said:
"We endeavour to capture both short and long-term market trends with our sustainable index offerings and sustainable debt is swiftly growing, with global sustainable debt issuance surpassing $1 trillion year to date, according to data compiled by BloombergNEF. Building off Bloomberg's flagship Global Aggregate index, our new Global Aggregate Green, Social & Sustainability Bond Indices incorporate the research of Bloomberg's ESG and fixed income data teams to deliver a diverse set of indices to meet the varied needs of the investment community exploring this growing market."
The indices are now available for benchmarking, asset allocation, and product development. Additional features such as specific exclusions, regulatory "aware" fields such as SFDR and EU Taxonomy inputs, and even sector-specific weightings, among others, can be used to further customise the indices to satisfy specific individual investor needs.
Bloomberg ESG & Climate Indices assist investors in addressing sustainability efforts across asset sectors. Bloomberg just launched the Bloomberg U.S. Municipal Impact Index, which tracks Green, Social, and Sustainability Municipal Bonds, as well as the Bloomberg Climate Indices, which include EU Paris-Aligned Benchmarks.
Bloomberg clients can access the various indices via the Bloomberg Terminal, and all indices research and methodology can be found at Bloombergindices.com. For customers all over the world, Bloomberg offers an impartial, transparent approach to indexing. Visit Bloomberg ESG to discover more about Bloomberg's Sustainable Finance Solutions.