Legal & General Investment Management (LGIM) has launched the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund, the first in a series of funds aimed at providing investors with exposure to an enhanced sovereign ESG framework and integrating ESG across sovereign debt. The funds will incorporate ESG factors and a new proprietary fourth ESG pillar focused on “Geopolitical stability/risk.” LGIM aims to eliminate income bias in sovereign ESG scores by allocating more capital to nations that require debt issuance and rewarding countries improving their ESG credentials. The funds will use data from Verisk Maplecroft and leverage JP Morgan’s fixed income benchmark methodologies. The funds have been categorized as Article 8 under the Sustainable Finance Disclosure Regulation.
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