FTSE Russell Introduces Fixed Income Climate Indices to Boost Sustainable Investments

FTSE Russell Introduces Fixed Income Climate Indices to Boost Sustainable Investments

(IN BRIEF) FTSE Russell has launched two new fixed income indices, the FTSE Fixed Income TPI Climate Transition Index Series and the FTSE Fixed Income TPI Focused Glidepath Index Series. These indices aim to support investors in meeting their climate commitments by focusing on sustainability metrics. The Climate Transition Index adjusts constituent weights based on factors such as carbon emissions and green bonds, while the Glidepath Index employs a long-term bond investment strategy, reinvesting in companies working towards Paris Agreement alignment. These offerings are designed to aid the transition to a low-carbon economy.

(PRESS RELEASE) LONDON, 27-Sep-2024 — /EuropaWire/ — FTSE Russell has launched two new fixed income index series aimed at helping investors meet their climate-related goals. The FTSE Fixed Income TPI Climate Transition Index Series and the FTSE Fixed Income TPI Focused Glidepath Index Series are designed to align with sustainable investment principles and support the transition to a low-carbon economy.

The FTSE Fixed Income TPI Climate Transition Index Series uses a methodology that mirrors its equity counterpart, focusing on five key climate factors such as carbon emissions, green bonds, and companies’ alignment with the Paris Agreement goals. The series adjusts constituent weights based on these factors, providing a forward-looking approach to evaluating a company’s readiness for the climate transition.

The FTSE Fixed Income TPI Focused Glidepath Index Series is geared toward a buy-and-hold investment strategy for corporate bonds. The index reinvests proceeds from matured bonds into high-carbon companies working toward Paris Agreement alignment by 2050, creating a decarbonization pathway over time.

Scott Harman, Head of Fixed Income, Currencies, and Commodities at FTSE Russell, stated, “Our new indices offer a comprehensive approach that goes beyond carbon emissions to include company activities in the green economy and forward-looking metrics, helping investors manage climate risks and make meaningful contributions to a sustainable future.”

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FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $15.9 trillion is benchmarked to FTSE Russell indexes. Leading asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

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FTSE Russell is wholly owned by London Stock Exchange Group.

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