A $5 Trillion Sovereign Bond Group Is Rethinking Climate Risk
- BT Pension and Church of England are backing the efforts
- Focus is on providing better funding access for poorer nations
Low- and middle-income countries are exempted from several indicators, such as the setting of a nation’s net-zero target by 2050.
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A $5 trillion investor coalition wants to change how markets assess government bonds to help unlock climate finance to emerging markets.
The Assessing Sovereign Climate-related Opportunities and Risk (ASCOR) project, spearheaded by BT Pension Scheme Management and the Church of England Pensions Board, has proposed a framework it says focuses on fairness between richer and poorer countries. It comes amid concern that simplistic ESG analysis might penalize the nations most exposed to — and least responsible for — climate change.