Bloomberg and MSCI Launch Global, Euro and US Corporate Paris-Aligned Indices

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Apr 19, 2022, 08:30 ET

NEW YORK, April 19, 2022 /PRNewswire/ -- Bloomberg and MSCI announced today the launch of the first indices in their joint Climate Benchmark offering with the Bloomberg MSCI Global, Euro and US Corporate Paris-Aligned Indices. These indices will serve as a benchmark for investors to assess the performance of corporate bond holdings that seek to meet or exceed the minimum standards of the EU Paris-Aligned Benchmark (PAB) label.

The indices combine Bloomberg's extensive fixed income indices family with MSCI's Climate data, research, and analytics for investment-grade, fixed-rate, and global, US or EUR-denominated corporate bonds. To ensure they meet the minimum PAB criteria, each index sets an initial 50% reduction of absolute greenhouse gas (GHG) relative to the standard Bloomberg parent (Euro, US, or Global) 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.

"As global investors increasingly seek to align with the transition to a low-carbon economy, it is imperative that asset managers and ETF issuers have reliable, data-driven indices that can help quantify climate-specific risks and opportunities," said Chris Hackel, Index Product Manager, Bloomberg. "This joint offering provides the market with a transparent and systematic approach for investors to conform to global frameworks, and we look forward to working with clients to further customize off the foundation of these benchmarks to fit their individual investment strategies."

The indices use an exclusions-based approach to achieve the required decarbonization trajectory. The monthly exclusions process will establish the emissions threshold required to maintain compliance with the PAB label decarbonization trajectory for the following month.

"These Climate Fixed Income Indexes from MSCI and Bloomberg will enable investors to utilize MSCI's industry-leading climate data while aiming to align with the Paris Agreement requirements of limiting global warming to no more than 1.5°C," said George Harrington, Managing Director & Global Head of Fixed Income & Derivatives, MSCI.

Bloomberg clients can access the indices on the Terminal using the following tickers: I37017 Index <GO> for the Bloomberg MSCI Global Corporate Paris-Aligned Index, I37023 Index <GO> for the Bloomberg MSCI Euro Corporate Paris-Aligned Index, and I37024 Index <GO> for the Bloomberg MSCI US Corporate Paris-Aligned Index.

Bloomberg provides an independent, transparent approach to indexing for customers across the globe. For more information, please visit Bloomberg Indices.

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. As an integral part of Bloomberg, BISL has access to a comprehensive range of trusted data and reliable technology for calculations, analytics and workflow automation, along with distribution capabilities that can help amplify the visibility of our customers' products.

About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company's strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg's enterprise solutions build on the company's core strength: utilizing technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit Bloomberg.com/company or request a demo.

About MSCI Inc.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com.

SOURCE Bloomberg