Overview
The Assessing Sovereign Climate-related Opportunities and Risks (ASCOR) initiative is a benchmark series, first initiated in 2023, that provides an independent and structured assessment of how countries are managing climate-related risks and opportunities relevant to sovereign debt markets. It focuses on sovereign-level policy frameworks rather than outcomes, enabling consistent cross-country comparison.
Purpose
The purpose of the ASCOR benchmark is to support the integration of climate considerations into sovereign investment analysis. It is designed to inform investor decision-making, support engagement with sovereign issuers, and improve transparency around how governments are addressing climate-related transition and physical risks.
Methodology
ASCOR uses a transparent, standardised framework based on publicly available information. Countries are assessed across defined thematic pillars covering emissions pathways, climate policies, and climate finance. The methodology combines structured qualitative indicators with contextual quantitative metrics, while accounting for differing national circumstances and levels of development to ensure comparability.
Use for finance professionals
Finance professionals can use ASCOR to support sovereign bond analysis, compare climate-related policy approaches across countries, and inform engagement strategies with sovereign issuers. The benchmark can also assist with climate risk disclosure, regulatory reporting, and broader assessments of long-term sovereign climate-related risks and opportunities.
