A Bloomberg Professional Services Offering

Bloomberg Professional Services

Climate Risk Scores:
Goverments
Assess government preparedness in the transition to a low carbon
world with transparent, data driven scores.

ESG
Countries around the world are racing to align to the Paris Climate Agreement, with goals of limiting warming to 1.5
degrees Celsius by achieving net zero greenhouse gas emissions. Government action can influence markets by setting
out clear, consistent policies, along with strong incentives that enable carbon emissions reduction and the shift towards
a low carbon economy.

But how can you effectively analyze a particular country when it comes to its climate transition performance? The
Bloomberg Government Climate Risk Scores provide meaningful detail and key performance indicators on 135
countries, addressing the many challenges associated with accurate measurement.

Bloomberg’s data-driven measure of country climate performance

The Bloomberg Government Climate Risk Scores are fully transparent, showing the connection between each score and
the country-reported data driving it. Further information on the Government Climate Risk Scores methodology is
available on BESG<GO>.
These scores are composed of three equally-weighted sets of measurements:

• Carbon Transition: Measures a country or region's historical, current and forward looking emissions performance.
• Power Transition: Measures a country or region's progress and future effort towards power sector decarbonization.
The Power Sector Transition score features proprietary BloombergNEF (BNEF) data collected for BNEF's
Climatescope project and other BNEF tools. It includes proprietary capacity country-level capacity and generation
data, wind and solar capacity additions forecast and clean energy investment numbers.
• Climate Policies: Measures a country or region's progress on net zero target pledges, green debt issuance and
renewable energy policy frameworks.

Key Features Use Cases

• Transparent scoring — Investors can view and analyze
the underlying data driving each score, making them
useful for a wide range of analyses and reporting.
• Quantitative methodology — Bloomberg’s
proprietary quantitative model is informed by
extensive research and analysis to:
• Index and Portfolio construction — Government
Climate Risk scores and underlying data can be
leveraged to construct indices and portfolios by
employing score-based tilts, or by screening
constituents in terms of explicit emissions
reduction.

o Normalize data • Government Level Peer Analysis — The

o Address GDP size biases quantitative methodology employed adjusts for
o Assess materiality of specific fields based on economy size biases, as well as investment and
economic indicators and government policies policy materiality, to enable score performance
o Effectively aggregate data comparisons across countries.
Climate Risk Scores

Access Government Climate Risk Scores and identify best and worst performers

BI ESG GOVCLIMATE <GO>> — To view Government Climate Risk Scores open the BI ESG Dashboard and select BBG Scores from the Data Library.

Track detailed performance metrics across pillars

Access and analyze performance at the Issues and Sub-issue level across the three scoring pillars.

Learn more
For more information about Government Climate Risk Scores, contact your account representative.

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bloomberg.com/esg The data included in these materials are for illustrative purposes only. ©2021 Bloomberg