Description

The Bloomberg MSCI Euro Corporate SRI 0-5 Year PAB Index is designed to capture the performance of a specific segment of the corporate bond market. It focuses exclusively on Euro-denominated, investment-grade corporate debt securities with short-to-medium term maturities, ranging from one month up to, but not including, five years. To be eligible, bonds must have a minimum outstanding issuance value of EUR 300 million. A key aspect of this index is its strong emphasis on ESG (Environmental, Social, and Governance) criteria. It only includes companies that boast an MSCI ESG rating of 'BBB' or higher and maintain an MSCI ESG Controversy Score of 1 or above. Furthermore, the index incorporates a rigorous decarbonization strategy for absolute greenhouse gas (GHG) emissions. This involves an initial 50% reduction in absolute GHG emissions relative to its broader universe, followed by a committed annual 7% decarbonization trajectory. To align with its responsible investment principles, the index strictly excludes companies involved in specific controversial business activities. These include alcohol, tobacco, gambling, adult entertainment, genetically modified organisms (GMO), nuclear power, civilian firearms, and certain military weapons, as further defined by the index's detailed exclusion rules. Comprehensive information regarding the index's methodology can be accessed on the official Bloomberg Indices website.