STOXX and ICE have teamed up to develop a suite of unique, optimized fixed income indices that comply with, and exceed, the European Union’s Paris-aligned Benchmark (EU PAB) and EU Climate Transition Benchmark (EU CTB) requirements. As such, the indices are designed to align investments with the Paris Agreement’s long-term global warming goals.
The indices exclude companies based on global norms, product involvement, controversies and activities that hinder certain United Nations’ Sustainable Development Goals (SDGs).
Index construction follows an optimization process that uses the Axioma Portfolio Optimizer software and is aimed at meeting the requirements detailed in the Commission Delegated Regulation (EU) 2020/1818. The indices overweight companies with approved, committed and ambitious carbon reduction targets under the Science Based Targets Initiative (SBTi) and target minimum ‘green-to-brown’ revenue ratio. The indices are optimized to reduce the turnover to track the performance of the parent indices.
Key facts
Unique collaboration between two leading index providers
Alignment with Paris Agreement goals
Advanced optimization for holdings selection while minimizing tracking error
Transparent methodology to measure carbon-related impact and progress
Coverage of dollar, euro, sterling and major currencies in the investment grade, and dollar and euro high-yield credit segments
STOXX ICE Fixed Income Sustainability indices
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STOXX and ICE collaborate on new suite of fixed income indices
STOXX Ltd. today announced its collaboration with Intercontinental Exchange (NYSE: ICE), a leading global provider of technology and data, to support a suite of fixed income climate indices launched on June 2.