Intercontinental Exchange launches ESG bond indices

Rick Steves

Intercontinental Exchange has launched a suite of corporate bond climate indices, part of the ICE ESG Bond Index Family, which supports the growing demand for responsible and sustainable investing.

Intercontinental Exchange has launched a suite of corporate bond climate indices, part of the ICE ESG Bond Index Family, which supports the growing demand for responsible and sustainable investing.

Designed to capture the Paris Agreement goal of achieving net zero carbon emissions by 2050, the suite of corporate bond climate indices leverage 23 of ICE’s corporate bond benchmarks to create a family of 138 climate indices, many of which are labelled as Paris Aligned benchmarks and Climate Transition benchmarks.

For each benchmark index, ICE has created six climate variants using different screening and carbon metrics that all target a reduction in the aggregate carbon emissions of constituents to net zero by 2050.

Carbon reduction is a key focus for investors

Varun Pawar, Head of ICE Data Indices, said: “The goal of carbon reduction has become a key focus for investors, as they begin to look at not just promises of change, but at actions companies are taking to achieve their emission goals. This new suite of indices brings together several of ICE’s strengths – its leadership role in fixed income securities and global environmental markets, experience creating innovative sustainable benchmarks and ability to deliver products that match investors current and future needs.”

ICE’s ESG bond indices leverages the existing benchmark such as the ICE BofA Fixed Income Indices, to create a broad range of benchmarks that match the growing demand for responsible and sustainable investing.

The fixed income sustainable benchmarks and ICE’s Global Carbon Futures Indices serve as benchmarks for the global price of carbon.

SIX adds carbon emissions data and climate risk analysis

Swiss financial data specialist SIX has partnered with Urgentem to support their clients in meeting climate-related requirements such as regulatory reporting of emissions data, tracking alignment to climate goals (Net Zero) and stress testing among many others.

Urgentem provides quality assured greenhouse gas emissions data and science-aligned climate risk analytics. The team-up is a strategic move for SIX as their customers increasingly look to understand, measure, and manage climate risk and opportunities, and the impact these have on investment decisions.

Through the partnership, SIX will be offering Urgentem’s comprehensive Emissions data set – which provides extensive granular level carbon emissions data of the largest 5,000+ global companies with modelled data available for 30,000+ securities – as well as Emission Reduction Targets and Temperature Score data sets.

All data sets undergo extensive quality assurance and data cleaning before application and are available to SIX clients via Secure File Transfer Protocol (SFTP).

SIX has increased its efforts to help customers drive forward sustainable investing with data, providing consumption-ready data and analytics for more informed decisions.

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