Bloomberg launches low-carbon commodities index

Overweighting commodities with a lower carbon footprint

Bloomberg has launched a commodities carbon index designed to support investors in transitioning portfolios.

The Bloomberg Commodity (BCOM) Carbon Tilted Index overweights commodities with a lower carbon footprint while minimizing tracking error to Bloomberg’s flagship BCOM parent index.

“The BCOM Carbon Tilted Index is designed with investors’ complex needs in mind. There is a growing want to support the transition to a low-carbon economy while remaining aligned with their investment goals across all asset-classes,” said Allison Stone, head of multi-asset product, Bloomberg Index Services Limited.

The new index is the latest extension of the Bloomberg Commodity Index, which was launched in 1998 and introduced to the market the first explicit focus on market liquidity and capping mechanism constraining individual sectors and preserving a balance over time. BCOM provides broad-based exposure to commodities, and no single commodity or commodity sector dominates the index.