International asset manager Robeco announced the launch of the Climate Euro Government Bond ETF, a new exchange traded fund aimed at offering investors with exposure to euro government bonds through a climate transition-focused investment strategy.
The announcement marks the launch of Robeco’s first fixed income ETF, following the listing in October 2024 of the firm’s equity ETFs.
The new ETF invests in Euro denominated government bonds, with its underlying benchmark index adjusting country weights based on factors including climate scores and green bond issuance, in order to channel capital toward countries with ambitious, credible, and effective climate strategies, in addition to promoting investment in green bonds that directly finance sustainable infrastructure, such as renewable energy and clean transportation.
Nick King, Head of ETF at Robeco, said:
“This innovative ETF allows investors to achieve a broad allocation to government bonds that supports climate transition whilst maintaining the risk/return profile of traditional benchmarks. With this launch, we are expanding our active ETF range into fixed income and we will be adding further products in the coming months.”
Robeco said that it collaborated with FTSE and ING during the development of the new ETF, to develop a proprietary methodology that systematically scores countries based on their emission targets, climate policies, and evidence of decarbonization. The methodology draws on climate indicators from the Assessing Sovereign Climate-Related Opportunities and Risks (ASCOR) tool, which is structured around key pillars including an evaluation of countries’ climate targets, policy assessment including climate legislation, carbon pricing, and fossil fuel phase-out, and analysis of actual emissions trends and alignment with 1.5 °C pathways.
Stephanie Maier, Global Head of Sustainable at FTSE Russell said:
“At FTSE Russell, we are proud to have played a central role in this collaboration with ING and Robeco, bringing together index innovation, sustainable finance, and investor engagement to provide a transparent, rules-based solution to support fixed income investors managing the risks and returns in the climate transition.”
