FTSE Climate CaRD Government Bond Index Series

Our full FTSE Climate CaRD Government Bond Index Series supports global fixed-income investors to incorporate climate risk considerations.

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  1. Overview
  2. Key resources
  3. Research and Insights
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The FTSE Climate Risk-Adjusted Carry and Roll Down Government Bond Index Series seeks to reflect a targeted exposure to the sovereign bonds in the FTSE Climate Risk-Adjusted Government Bond Index (the “base universe”). The index series aims to support global fixed income investors to incorporate climate risk considerations while providing flexibility on optimising factor variants.

The weightings for each security within the Index are determined by an optimisation process that aims to maximise the rolling yield return, i.e., Carry (yield) and Roll Down (returns from shortening of bond maturity and positive yield curve roll down) of the Index, subject to duration and country weight constraints of the Base Universe.

The base universe measures the performance of fixed-rate, local currency, investment-grade sovereign bonds based on the market capitalisation of its index eligible debt in the FTSE World Government Bond Index or FTSE EMU Government Bond Index, as well as by incorporating a tilting methodology that adjusts index weights according to each country’s relative climate risk performance, measured across three distinct and quantitative, climate-related pillars: transition risk, physical risk and resilience.

There are a range of government bond indices available, which allows for flexibility towards desired climate exposure. The ‘advanced’ versions of the indices are constructed with a stronger tilt to the Transition pillar, therefore offer greater exposure to countries with a stronger alignment to the 2 degree pathways.

The series comprises:

  • FTSE Climate Risk-Adjusted Carry and Roll Down World Government Bond Index (FTSE Climate CaRD WGBI)

  • FTSE Advanced Climate Risk-Adjusted Carry and Roll Down World Government Bond Index (FTSE Advanced Climate CaRD WGBI)

  • FTSE Climate Risk-Adjusted Carry and Roll Down EMU Government Bond Index (FTSE Climate CaRD EGBI)

  • FTSE Advanced Climate Risk-Adjusted Carry and Roll Down EMU Government Bond Index (FTSE Advanced Climate CaRD EGBI)

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Key resources

Index announcements

Stay up-to-date and read the latest index change notices and announcements.

View all index announcements

Research and Insights

Research

Not all ESG scores are the same

We measure Japanese company performance demonstrating specific ESG practices. Read our latest Q4 2023 report, written in collaboration with SGX.

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Scope for improvement: Solving the Scope 3 conundrum

We address key questions about Scope 3 emissions and propose solutions to enhance data quality, improve data reliability, and make Scope 3 data more accessible and user-friendly.

Research

How can SDG sovereign indices support impact investing?

We look at how to build a global Sustainable Development Goals (SDG) alignment model and how to integrate this in sovereign risk analysis.

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