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September 2022
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FTSE Russell launches new sustainable investment benchmarks for bonds

These indices are designed for investors seeking to integrate their sustainable investment strategy into their fixed income investments
By Goh Thean Eu   
August 12, 2022

Index provider FTSE Russell has launched a set of three new benchmarks for sustainable bond investments to cater to rising demand for environmental, social and governance investing.

The FTSE Fixed Income Global Choice Index series, the FTSE Fixed Income Excluding Fossil Fuels Enhanced Index series, and the FTSE Impact Bond series are designed for investors who want to integrate their sustainable investment strategy into their debt holdings, the London-based index provider says in a statement on August 11.

The benchmarks address growing need for sustainable investment solutions in the bond market, according to Scott Harman, FTSE Russell’s global fixed income head.

“As investors look to align their portfolios with their ESG values, we have developed a thorough methodology to enable investors to exclude issuers based on their conduct or product involvement in specific sectors,” Harman says.

“We believe sustainable investing in the fixed income market will accelerate in the coming years, becoming mainstream and making it more challenging to hold portfolios without at least a basic sustainability element,” he adds.

The FTSE Impact Bond Index series allows global debt investors to participate in the fast growing green, social, and sustainable bond market.

The FTSE Fixed Income Global Choice Index series track performance of securities in the separate FTSE Fixed Income indices, but excludes issuers based on their conduct or product involvement in specific sectors.

This, according to FTSE Russell, will help investors align their portfolios with their individual values by selecting issuers based on the impact of their conduct and products on society and the environment.

The FTSE Fixed Income ex Fossil Fuels Enhanced Index series also tracks performance of securities in the FTSE Fixed Income indices, but excludes those with a certain amount of exposure to fossil fuels.