Robeco has broadened its exchange-traded fund (ETF) line-up with the launch of its first fixed-income product, the Climate Euro Government Bond ETF, listed today on Euronext Amsterdam. The fund provides exposure to eurozone government bonds through a climate transition-focused strategy.
Developed in collaboration with FTSE Russell and ING, the ETF applies a proprietary methodology to score countries on their climate performance. The framework assesses three pillars: ambition, policy and evidence, drawing on data from the Assessing Sovereign Climate-Related Opportunities and Risks (ASCOR) tool. Over time, greater weight will be given to the “evidence” pillar, which measures actual emissions reductions and alignment with a 1.5°C pathway.
The benchmark index adjusts country allocations based on climate scores and green bond issuance, thereby directing capital to governments with stronger climate strategies and higher levels of green bond financing. The approach seeks to balance climate impact with the risk/return profile of conventional government bond benchmarks.
Nick King, Head of ETFs 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.”
Stephanie Maier, Global Head of Sustainable at FTSE Russell, added: “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.”
