Following the successful launch of its low carbon equity index family, Solactive AG in collaboration with South Pole Group sets the bar for fixed income low-carbon index solutions with its new Solactive SPG Euro IG Low Carbon Bond Index. The index will cover investment grade corporate bonds denominated in EUR while selecting companies that are less dependent on fossil fuels relative to higher carbon-emitting peers.
The Solactive SPG Euro IG Low Carbon Bond Index will attend to the needs of all risk-sensitive fixed income investors that seek to reduce the carbon footprint of their investment portfolio and mitigate climate change related investment risk. For the creation of the index, Solactive has extended its successful partnership with South Pole Group, the world's leading provider of sustainability and climate finance solutions, and build on its past expertise in the development of climate-themed bond indices (Solactive green bond indices).
Dr. Maximilian Horster, Partner, Financial Industry, South Pole Group explains: "Until recently, transferring the logic of low carbon investments from equity to fixed income has been a challenge. We are excited that our innovative methodologies and unmatched climate change data capabilities now enable easy and effective climate friendly fixed income investments."
Steffen Scheuble, CEO, Solactive AG says: "Solactive will make a vital contribution to the integration of climate change and mitigation efforts in fixed income investments as it will be providing the first diversified investment grade universe of bonds dedicated to finance low carbon companies."