Sustainable investing for sovereign bonds may come with a caveat: Green bonds tend to have longer duration profiles than non-labeled equivalents. What does it mean for fixed-income investors with a climate mandate? 

Some sovereign-bond investors seeking to support climate mitigation might be interested in the idea of increasing their exposure to issuers with lower carbon emissions. Would this have been a good approach? 

Integrating sustainability and climate risk and impact into bond and private-debt analysis is becoming an increasingly important aspect of portfolio construction. This paper discusses a range of metrics that could guide investors in making these assessments.

Good emissions data is essential for any detailed sovereign-bond climate analysis. In this paper, we address some key questions around how best to quantify sovereign bonds’ financed emissions and climate-transition risk.

With a very strong likelihood of an El Niño event forming by the end of 2023, we take a look at the impact such events have had in the past on the debt-to-GDP ratios of global sovereigns and what this could mean for impact investors.  

Quantifying sovereign bonds’ physical and transition risks may help investors determine the climate resiliency of their portfolios. MSCI Climate Change and Natural Hazards Risk Factor Score may help guide the analysis of these complex risks.