FTSE Russell has launched the world’s first bond index to weigh products based on how prepared their governments are to mitigate and adapt to climate change. The FTSE Climate Risk-Adjusted World Government Bond Index (Climate WGBI) will enable sovereign debt investors to include climate change risks in their decision-making. “Investors have been asking for a better way of measuring risk since the financial crisis but until now there was no standardised measure that could be used across all countries,” said Andrew Goodwin, Head of Global
FTSE Russell has launched the world’s first bond index to weigh products based on how prepared their governments are to mitigate and adapt to climate change. The FTSE Climate Risk-Adjusted World Government Bond Index (Climate WGBI) will enable sovereign debt investors to include climate change risks in their decision-making. Sovereign bonds across 22 developed nations will be ranked using data from the FTSE World Government Bond Index, which is then processed through metrics from analytics provider Beyond Ratings.