Robeco has expanded its active ETF offering with the launch of its first fixed income ETF: the Climate Euro Government Bond ETF. It is providing targeted exposure to euro government bonds through a climate transition-focused investment strategy. The ETF was listed at the Euronext in Amsterdam. Robeco collaborated with FTSE and ING during the development of this ETF.

Governments play a pivotal role in addressing climate change by setting national climate policies, allocating public funds to sustainable initiatives, and shaping regulatory frameworks that encourage private sector involvement. Through fiscal measures, subsidies, and direct investments, they can accelerate large-scale climate action and help drive the transition to a low-carbon economy.

To support this effort, Robeco collaborated with FTSE and ING to develop a proprietary methodology that systematically scores countries based on their emission targets, climate policies, and evidence of decarbonization. This ranking offers a forward-looking, balanced, and transparent assessment of each country’s climate performance.

The methodology draws on climate indicators from the Assessing Sovereign Climate-Related Opportunities and Risks (ASCOR) tool, structured around three pillars:

• Ambition – evaluating countries’ decarbonization targets
• Policy – assessing climate legislation, carbon pricing, and fossil fuel phase-out
• Evidence – analyzing actual emissions trends and alignment with 1.5 °C pathways

As the net-zero deadline approaches, the ‘Evidence’ pillar will carry increasing weight.

The ETF’s benchmark index adjusts country weights based on climate scores and green bond issuance, aiming to channel capital toward countries with ambitious, credible, and effective climate strategies. It also promotes investment in green bonds that directly finance sustainable infrastructure, such as renewable energy and clean transportation.

Nick King, Head of ETF at Robeco: “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, FTSE Russell, an LSEG Business: “At FTSE Russell, 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.”

Source: Robeco