Sovereign Bond Sustainability Ratings
EIRIS' Sovereign Bond Sustainability Ratings enable investors to create sovereign bond portfolios based on sustainability criteria. Countries can be compared, ranked and filtered using a wide range of environmental, social and governance (ESG) indicators.
EIRIS' Sovereign Bond Sustainability Ratings allow you to extend your ESG overlay to sovereign bond investments. Over 70 countries have been analysed so that government bond investors can apply sustainability criteria to their investments in sovereign bonds. EIRIS analysts collate and analyse ESG data from a wide range of reputable sources to build a sustainability profile for each country.
The tool focuses on key ESG indicators such as equality indices, corruption and ratification of international conventions. Country profiles include detailed information on the social and environmental performance of governments and deliver default sustainability ratings. The standard ESG weightings can be adjusted to provide each user with a bespoke ranking for each country.
To avoid rich country bias, our sovereign bond sustainability ratings can also be normalised by investors according to each countries’ GDP to ensure that richer companies do not necessarily score higher than poorer countries on the basis that they have more funds available to tackle ESG challenges.
In total there are more than 60 indicators for each country, these include:
- Whether the death penalty is still used
- CO2 emissions each year
- Spending on health and education
- Whether child labour is used
- The protection of civil and political rights
- Deforestation rates
EIRIS is careful to source data from reputable, internationally recognised sources such as the United Nations, World Bank, Freedom House, Amnesty International and the International Energy Authority.
For a sample Country Profile, and to discuss the weightings and rankings that might be relevant to you, please contact our client team.
