Gustavo Bernal Torres
A Framework to Assess Sovereign Bond Issuers on Climate Change
Assessing Sovereign Climate-related Opportunities and Risks (ASCOR) is a framework to assess sovereign bond issuers on climate change. The initiative is led by asset owners, asset managers and investor networks, including the Institutional Investors Group on Climate Change (IIGCC), Principles for Responsible Investment and Transition Pathway Initiative (TPI) among others.
Indicators are assessable using publicly available data, like government documents or reliable, publicly available databases. While data availability remains a limitation for some indicators, we aim to evolve the framework as disclosure and data availability improve, and through engagement with sovereign issuers. Country assessments will be undertaken using existing databases or through dedicated data collection and policy analysis based on information in public government documents.
The framework is composed of three pillars organised under nine themes, each of which includes ‘Yes’ or ‘No’ indicators and, where relevant, complementary quantitative metrics. These indicators were carefully selected based on materiality, availability and comparability.