Sustainable Finance & Socially Responsible Investment

Bloomberg Expands Sustainable Index Offering With New Green-Tilted Fixed Income Indices

Jan 9, 2024 9:45 AM ET

Originally published on bloomberg.com

Bloomberg announced the launch of new green-tilted fixed income indices, which seek to increase weighting to green bonds in some of Bloomberg’s flagship indices such as the Global Aggregate, Treasury and Corporate Indices.

The “tilted” indices incorporate research from Bloomberg’s ESG and fixed income data teams and offer investors an opportunity to incorporate and increase exposure to sustainable products while maintaining similar characteristics of the parent benchmark. The year-to-date return for the Bloomberg Global Aggregate 20% Green Bond Index is 0.75% above that of the parent benchmark, the Bloomberg Global Aggregate Index, showcasing the opportunity for additional returns for investors with an appetite for sustainability-focused investment. With Bloomberg’s expanded offering, clients have more choices than ever to increase their weighting of green bonds while maintaining the fixed income exposure they expect with the flagship indices.

“Sales of green bonds have reached record highs this year, up more than 10% compared to volumes for the same period last year, while the broader sustainable debt market has soared past new heights to $7 trillion historically, and Bloomberg Indices has closely tracked this growing trend to provide investors with myriad ways to introduce and benchmark this market to their portfolios,” said Jonathan Gardiner, product manager for Sustainable Indices, Bloomberg Index Services Limited.

These new broader-based green “tilted” indices have been developed by Bloomberg while also growing its suite of Global Aggregate Green, Social, Sustainability Bond Indices to include more than 70 benchmarks, with comprehensive maturity and sector outs, including, but not limited to, corporates, treasury and government. The recent launch comprises the below indices including, but not limited to:

  • Bloomberg Global Aggregate 20% Green Bond Index
  • Bloomberg Global Corporate 20% Green Bond Index
  • Bloomberg Global Treasury 20% Green Bond Index
  • Bloomberg Global Aggregate 3x Green Bond Tilted Index
  • Bloomberg Global Corporate 3x Green Bond Tilted Index
  • Bloomberg Global Treasury 3x Green Bond Tilted Index

The indices can be further customized to meet specific individual investor needs using additional fields such as business involvement exclusions, EU Taxonomy inputs, regulatory screens, and even custom sector weightings, among others. A custom Bloomberg Euro Treasury Green Bond Tilted Index has been licensed to Amundi, the largest European headquartered ETF provider, for the launch of an innovative UCITS ETF in Europe.

Bloomberg provides an independent, transparent approach to indexing for customers across the globe. Bloomberg Terminal clients can access the indices at {IN <GO>} and relevant fact sheets, methodology and research for the new indices are available on the Bloomberg ESG & Climate Indices publications page.

About Bloomberg Index Services Limited 
Bloomberg’s index team has a proven track record in creating industry leading and bespoke indices across asset classes, including best in class fixed income and commodity indices. Bloomberg Index Services Limited (BISL) takes an innovative approach to delivering strategic benchmarks that help market participants address their evolving needs.

About Bloomberg 
Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration. For more information, visit Bloomberg.com/company or request a demo.

Media Contacts 
US, Casey Sheets, +1 212 617 6463, csheets8@bloomberg.net