Incorporating climate change into a government bond allocation (aka How to build a climate-adjusted bond index – condensed)

The purpose of this paper is to outline ways in which government bond investors can take climate risks in their investment approaches into account. It presents and articulates the climate methodology that underpins the FTSE Advanced Climate World Government Bond Index (Advanced Climate WGBI) in detail, emphasizing the rationale behind each climate pillar (transitions risk, physical risk, and resilience) and also qualifying the chosen calibration.

Read the full whitepaper now at the link below