New Climate Benchmarks for Net-Zero Strategies

Bloomberg Fixed
Income Indices
MSCI Emissions
and ESG Data

Additional factors available forcustom Paris-Aligned IndicesNet-zeroalignedAnnual self-decarbonization, aligned witha 1.5°C scenario, achieved using issuer exclusion
or optimization.

Social norms, businessinvolvement screens

Meets baseline exclusions required by the EU
Benchmark Regulation. Can incorporate additional
ESG/BISR * screens.

Transition
Risk

Reduce fossil fuel exposure with reduced
exposure to the highest-impact issuers.

Carbon transition
solution provider

Green revenue

Low CarbonTransition Score

Company GHG
reduction targets

Green/fossil fuelrevenue ratio

MSCI ESG Rating
and BISR screens

Bloomberg MSCI Paris-Aligned Index Methodologies
Exclusion-based

Optimized (custom)

Meets the required annual decarbonization trajectoryby excluding the largest GHG (greenhouse gas) emittersin the index universe until the target reduction is met.

Achieves the target decarbonization while
minimizing tracking error volatility andconstraining for duration, yield, and sector
exposures, including overweighting companies
with credible emissions reductions targets orother positive carbon transition characteristics.

Enhanced exclusion (custom)
Follows the exclusion-based approach, but does
not exclude issuers with aggressive emissions
reductions targets, or those that are carbon
transition solution providers.

BISR: MSCI ESG business involvement screening research*Indices

Bloomberg and MSCI have collaborated to offer joint Climate Benchmarks, including the Bloomberg MSCI Global Corporate,
the Bloomberg MSCI Euro Corporate and the Bloomberg MSCI US Corporate Paris-Aligned Indices. These indices are designed
to meet and exceed the minimum standards of the EU Paris-Aligned Benchmark (PAB) label. They combine Bloomberg’sextensive global fixed income index family with MSCI’s ESG and carbon emissions data to monitor corporate issuers ofbenchmark securities.

Bloomberg Professional Services

Bloomberg MSCI Fixed
Income Paris-Aligned IndicesAbout Bloomberg Indices
Representative universes and strategies
We offer a broad suite of financial benchmarks across asset classes that investors can customize
for their portfolio needs. Coverage includes size, factors and ESG for custom index creation andseamless integration into multi-asset class indices using Bloomberg’s proprietary equity, fixedincome and commodity indices.
Transparent, rules-based design
Bloomberg Indices are produced using rules-based methodologies that provide clear guidelines
for construction, eligibility, corporate action treatment, rebalances and segmentation. Bloomberg’s
robust proprietary data and index portfolio construction capabilities provide the ability to tailor
exposures and target themes based on clearly defined rules and criteria.
Broadly customizable
Bloomberg publishes bespoke benchmarks and actively works with index users in a consultative manner
on benchmark design, methodology, back-testing, selection and documentation of their custom indices.
Replicable construction
Bloomberg Indices are designed to be replicable for investors and product issuers, allowing for closer
tracking to the benchmark and easier trading and management of portfolios against the index families.
Performance attribution
Seamless integration and decomposition of portfolio and index performance are available on theBloomberg Terminal.
Robust governance
Dedicated governance committees focus on key matters such as client challenges, launch of
new benchmarks, operational incidents, major announcements and material changes concerning
the benchmarks.
Distribution
Bloomberg Indices are broadly distributed and are available on the Bloomberg Terminal at noadditional cost. Information on Bloomberg Indices can also be found through Bloomberg webinars
and media properties, like Bloomberg Television and Bloomberg Radio.

More About Bloomberg MSCI ESG Fixed Income Indices
In addition to our family of Bloomberg MSCI Fixed Income Paris-Aligned Indices, Bloomberg
also partners with MSCI ESG Research, a leading provider of ESG and carbon emissions data, tocreate the Bloomberg MSCI ESG Fixed Income Indices, the market’s first fixed income index family
to incorporate measures of ESG risk. The index family covers Investment Grade, High Yield andEmerging Markets, and includes Socially Responsible (SRI), Sustainability and other ESG-weighted
methodologies. The offering also includes Global Green Bond Indices. These indices can also becustomized to fit with investors’ overall sustainability goals.

Take the next step.

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The MSCI ESG Indices use ratings and other data, analysis and information from MSCI ESG Research. Issuers mentioned or included in any MSCI ESG Research materials may include MSCI Inc., clients of MSCI, or suppliers to MSCI, and may alsopurchase research or other products or services from MSCI ESG Research. MSCI ESG Research materials, including materials utilized in ESG Indices or other products, have not been submitted to, nor received approval from, the United States
Securities and Exchange Commission or any other regulatory body. ESG Indices are unmanaged indices that cannot be invested in directly. None of the ESG Indices recommend, endorse, approve or otherwise express any opinion regarding any
issuer, securities, financial products or instruments or trading strategies and none of the ESG Indices are intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and they
may not be relied on as such. Any funds, products or other securities or investment vehicles using or based on the ESG Indices are not sponsored, endorsed, or promoted by Bloomberg or MSCI.
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