Bloomberg Barclays MSCI World Inexperienced Bond Index presents method for buyers to evaluate danger, says Singapore financial institution
Singapore financial institution UOB has adopted the Bloomberg Barclays MSCI World Inexperienced Bond Index as a part of its transfer to combine environmental, social and governance (ESG) issues into its suite of funding options.
The Bloomberg Barclays MSCI World Inexperienced Bond Index, launched in 2014, is a part of a household of inexperienced bond indices within the Bloomberg Barclays MSCI ESG Fastened Earnings benchmark providing.
Fastened-income securities are independently evaluated by MSCI ESG Analysis alongside 4 dimensions to find out whether or not a safety must be categorized as a inexperienced bond. These eligibility standards mirror themes articulated within the Inexperienced Bond Ideas and require readability a couple of bond’s use of proceeds; course of for inexperienced undertaking analysis and choice; course of for administration of proceeds; and dedication to ongoing reporting of the environmental efficiency of the usage of proceeds.
“The Bloomberg Barclays MSCI World Inexperienced Bond Index offers transparency to the rising inexperienced bond market, which not too long ago crossed the US$1 trillion mark in whole issuance, giving buyers a technique to consider efficiency and assess danger of tasks with direct environmental advantages,” says Ji Zhuang, APAC head of indices at Bloomberg.
Based on Bloomberg information, world inexperienced bond issuance this 12 months (as at Nov 17 2020) has climbed to greater than US$270 billion, surpassing final 12 months’s whole to hit a report. That comes as extra corporations and governments are turning to inexperienced securities for the primary time to fund tasks for cleaner development. The market will get an extra enhance subsequent 12 months from the European Union, which can develop into the world’s largest issuer when it begins to promote 225 billion euros (US$268 billion) of inexperienced bonds as a part of its pandemic restoration fund.
Jacquelyn Tan, head of group private monetary companies at UOB, notes: “We’re seeing rising buyer curiosity in sustainable investments, together with in inexperienced bonds. The Bloomberg Barclays MSCI World Inexperienced Bond index is a globally acknowledged commonplace and provides to the accountability of the ESG options we provide to our clients.
“Adopting the usual as our benchmark can be in step with UOB’s risk-first wealth advisory strategy to serving to our clients perceive the dangers of investments, forward of any potential returns. We are going to proceed to steer our clients’ wealth to sustainable investments as we forge a sustainable future collectively.”