JP Morgan and BlackRock unveil ESG fixed income indices

A suite of global fixed income indices integrating environmental, social and governance (ESG) factors into a composite benchmark has been launched by JP Morgan in collaboration with BlackRock.

The JP Morgan ESG (JESG) is aimed at investors who want to incorporate ESG and responsible investing in their overall fixed income investment strategies.

The new index is independently managed by JP Morgan. Its methodology is anchored to indices such as the JPMorgan Emerging Market Bond Index and the JPMorgan Government Bond Index-Emerging Markets.

Issuers with better ESG scores will have their weights increased relative to their baseline index weights. The JESG suite will also overweight green bond issuances.

Ethical screening will be applied for “controversial” sectors: thermal coal, tobacco, weapons and any violator of the United Nations Global Compact principles.

Sergio Trigo Paz, head of BlackRock emerging market debt, said: “Sustainable investing is about investing in progress and pioneering better ways of doing business. Strong ESG practices positively impact creditworthiness in the long-term, and up until now ESG in emerging market debt has been more bespoke and project-based, as opposed to providing solutions at scale.”

©2018 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST