How to Incorporate Climate Considerations Into a Government Bond Index?
We'll introduce the newly launched Bloomberg Government Climate Tilted Bond Indices, and discuss how these Indices use Bloomberg Government Climate Scores (GOVS) to assess not only a country's current progress toward reducing emissions, but also its forward-looking ambition.
Topics:
- What are Bloomberg Government Climate Scores (GOVS), and how do they measure carbon transition, power sector transition, and climate policy?
- What approach is taken to ensure that the Climate Scores do not have systematic bias across countries of differing levels of economic development?
- How do GOVS Scores incorporate forward-looking data leveraging Bloomberg New Energy Finance (BNEF)?
- What are the performance implications of incorporating the Scores into Bloomberg government bond indices?
- How can investors create customized indices according to their appetite for improved climate performance and tracking error?
- How can investors utilize the full GOVS dataset to create customized indices?
- What topics is Bloomberg planning to research next?
Speakers
Andrew Kudwitt
Sustainable Index Product Manager
Bloomberg L.P.
Andrew is a product manager in the fixed income index product team at Bloomberg. His responsibilities include new product development, with a focus on Sustainable indices. Andrew has been with the index business since 2015. He holds a Bachelor of Science in Quantitative Finance and a Master of Science in Applied Mathematics from Stevens Institute of Technology.
Lizzette Lara
Climate Risk Product Manager
Bloomberg
Lizzette Lara is a product manager for the Government Climate Risk Scores and Net Zero Assessment. Before joining the Sustainability Finance Solutions team, she worked at Bloomberg as a Market Risk specialist. Lizzette has two decades of experience in the financial markets in trading, structuring, derivatives, and risk management. Previously worked for BNP Paribas NY, Credit Agricole, BBVA and Allianz among other firms.
Niall Smith
Quantitative Researcher
Bloomberg
Niall Smith is a member of Bloomberg's Sustainable Investment Quantitative Research team. Niall has nearly 10 years of experience in the measurement and analysis of sustainability risks and is a subject matter expert in the areas of ESG, climate change & natural capital. Before joining Bloomberg Niall was an ESG Models & Data Analyst at Schroders, where he developed analytical tools used by global investment desks across asset classes for ESG and climate risk integration. Prior to this he was a Senior Quantitative Research Analyst at Verisk Maplecroft where he maintained and enhanced the firm's climate and environmental risk dataset, as well as produced data-led research. Niall has a B.A. in Earth Sciences from Trinity College Dublin, an M.Sc. in Environment & Resource Management from Vrije Universiteit Amsterdam and an M.Sc. in Artificial Intelligence from University of Limerick.