The FTSE Green Impact Bond Index Series provides a comprehensive measure of the global green bond market across various asset classes and credit sectors. The series measures the performance of both investment-grade and high-yield multi-currency green debt issued by government, government-sponsored, supranational, collateralized, and corporations. FTSE Russell considers 'impact bonds' to include green, social and sustainability 'use of proceeds' bonds and 'sustainability linked bonds'.
A bond is labelled as a green bond if its proceeds are specifically earmarked for projects that have environmental and/or climate benefit and has been labelled as “green” by the Climate Bonds Initiative (CBI) and aligned with International Capital Markets Association’s (ICMA) Green Bond Principles (GBP).
Clear disclosure of "Use of proceeds" and "Ongoing Reporting" are critical to avoid greenwashing. To be eligible for inclusion, a green bond must be labelled as "green" by the Climate Bonds Initiative (CBI) and is aligned with International Capital Markets Association's (ICMA) Green Bond Principles (GBP).
The series comprises:
The Green Impact Bond Index Series covers a broad array of asset classes and will have sub-indices available in any combination of currency, maturity and rating.
Index rules should be read in conjunction with supportingFTSE Russell noticesThese notices advise of advance changes in index methodology, which may not be reflected in index rules until the change effective date. The notices may also communicate revisions in index treatment in the period up to a rule change.