17th December 2015
Environmental data experts Trucost and ratings agency Beyond Ratings have joined forces to create a new range of research products and services to allow investors to measure the carbon footprint of their sovereign bond portfolios.
The historic agreement on climate change at the recent COP21 conference in Paris demonstrates that sovereign states bear a significant responsibility in the fight against climate change. The alliance between Trucost and Beyond Ratings enables clients around the world to assess the contribution of their sovereign bond portfolios to the transition away from fossil fuels towards low-carbon and renewable energy sources. Research will also include new, innovative key carbon performance indicators, which can be integrated into investors’ country risk analysis.
With about $50 trillion of assets, sovereign debt accounts for over 40% of fixed income assets and are key financial instruments to move towards a low-carbon economy in terms of both climate change mitigation and adaptation.
Founded in 2000 and headquartered in London, Trucost is the leading provider of carbon and environmental data to investors around the world using its comprehensive database on thousands of companies worldwide. Based in Paris, Beyond Ratings assesses the level of risk associated with climate change determinants for national economies, sovereign debts and related financial assets.
Lauren Smart, Executive Director of Trucost’s financial institutions business, said: “We are delighted to be partnering with Beyond Ratings on sovereign debt analysis. Our two entities have deep and complementary climate risk expertise in this area and a shared commitment to offering investors the highest quality data and analysis. “
Rodolphe Bocquet, Chief Executive Officer of Beyond Ratings, said: “We are very happy to join forces with Trucost, a well-known brand in the area of environmental footprinting. This partnership reflects a need for more innovative and sophisticated research in the financial industry. Our clients will be able to access a broad range of research products and services to better address energy and climate issues associated with sovereign assets. Thanks to Trucost, we will also expand internationally.”