Implementing sustainable investment fixed income solutions can be challenging given the complex nature of the asset class, novelty of the field and an evolving understanding of the materiality of different SI issues. Outside of green bonds, fixed income has traditionally been a laggard in adopting sustainable investing approaches compared to listed equities. However, this is changing rapidly as investor understanding of the impact of ESG and climate issues on fixed income holdings grows and regulators increasingly scrutinize sustainability risks and claims. As a result, the Fixed Income market is expanding rapidly, as new sustainable fixed income products are launched.
FTSE Russell is actively developing the data, methodologies and indexes across the matrix of sustainability approaches and fixed income asset classes to provide investors with a comprehensive range of SiFI benchmark solutions to support their individual objectives.