Description

This index, officially known as the Bloomberg MSCI USD Corporate SRI 0-5 Years PAB Index, is constructed to track the performance of a specific universe of corporate debt. It focuses exclusively on investment-grade corporate bonds denominated in US dollars, with maturities spanning from one month up to, but not exceeding, five years. To be eligible, each bond issue must have a minimum outstanding value of $750 million. A core component of its design is adherence to strict environmental, social, and governance (ESG) criteria. Only bonds from companies that have achieved an MSCI ESG rating of 'BBB' or higher, alongside an MSCI ESG Controversy score of 1 or more, are considered for inclusion. Furthermore, as a Paris Aligned Benchmark (PAB), the index implements rigorous monitoring of absolute greenhouse gas (GHG) emissions. This involves an initial 50% decarbonization of absolute GHG emissions relative to its parent universe, followed by a mandated annual 7% reduction in absolute GHG emissions. Certain activities and business sectors lead to automatic exclusion. Companies involved in alcohol, tobacco, gambling, adult entertainment, genetically modified organisms (GMOs), nuclear power, civilian firearms, and specific military weapons are all prohibited, with full specifics outlined in the index exclusion rules. For more comprehensive information on the index and its methodology, please refer to the index administrator's website at https://www.bloombergindices.com/.