New suite targets ESG demand in bond markets with indices aligned to EU Climate Transition and Paris-aligned Benchmark regulations.
ETFs on the rise: Fixed income ETFs expected to grow from $2.6T to $6T by 2030, driving demand for climate-compliant benchmarks.
Optimized for sustainability and performance: Indices use SBTi-aligned targets, green-to-brown revenue filters, and low turnover strategies.
STOXX and Intercontinental Exchange (ICE) have launched a new suite of fixed income climate indices designed to meet rising investor demand for ESG-integrated bond benchmarks. These STOXX ICE Fixed Income Sustainability Indices span investment-grade and high-yield markets across major currencies including USD, EUR, and GBP.
The indices are engineered to exceed the European Union’s Climate Transition Benchmark (CTB) and Paris-Aligned Benchmark (PAB) requirements. They align with the Paris Agreement’s long-term climate goals and are tailored for institutional portfolios seeking to combine compliance, sustainability, and risk-adjusted returns.
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“Working with ICE Data Indices enables us to accelerate the delivery of fixed income benchmarks tailored to market demand,” said Axel Lomholt, General Manager at STOXX. “This collaboration brings together two leading financial companies and skill sets to launch and operate a suite of indices that addresses the growing demand for sustainable investment products in the bond market.”
ICE, which owns the New York Stock Exchange and provides leading market data infrastructure, handles index calculation, pricing, and reference data. STOXX, the index developer, provides ESG data, index methodology, and administration. The collaboration brings 60+ years of combined experience in index innovation and financial data services.
The launch is timely. Fixed income ETFs have surged to $2.6 trillion in AUM, and BlackRock projects that number to more than double to $6 trillion by 2030. Yet, despite over $570 billion invested in climate funds, fixed income exposure remains minimal—highlighting a gap this suite aims to fill.
“By combining STOXX’s experience in sustainability data and methodologies with our leading fixed income pricing, reference data and index calculation solutions, together we are creating powerful new benchmark products,” said Chris Edmonds, President of ICE Fixed Income and Data Services. “We’re thrilled to work with STOXX and look forward to continuing to work together on new products and services.”
The indices are built using Axioma Portfolio Optimizer and adhere to EU Regulation 2020/1818. Key features include:
Overweighting issuers with Science Based Targets Initiative (SBTi)-verified climate goals
Favorable weighting of firms with higher ‘green-to-brown’ revenue ratios
Exclusions based on global norms violations, product involvement, controversies, and misalignment with key UN Sustainable Development Goals
Optimized for low turnover and close tracking of parent benchmarks
This partnership expands an existing relationship. STOXX already utilizes ICE’s pricing and data for its eb.rexx indices, which underpin $3.2 billion in BlackRock iShares ETFs. STOXX also manages the EUROGOV index family for euro-denominated sovereign debt.
With growing regulatory pressure and net-zero commitments reshaping capital markets, this latest launch positions STOXX and ICE as first movers in a space where climate risk, regulatory alignment, and index innovation converge.
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