Approximately 90% of new financing for fossil fuel expansion comes from loans and bonds. Bond indices therefore play a critical role in assigning new capital to fossil fuel expansion, which is out of line with the scientific and policy consensus.
We are deploying research from the University of Cambridge and other leading universities to create a corporate bond index that will contribute to limiting climate change to 1.5°C. It would be the first corporate bond index to exclude fossil fuels, electric utilities, and financial sector issuers whose actions would result in a world of dangerous heating above 1.5°C (currently most if not all of them). The index will be overseen by a group of leading academics from across the world. No company is beyond redemption, and can join the 1.5°C bond index if they change their approach.
