Solactive, South Pole Group develop new low carbon bond index

By Lisa Kerner

Charlotte, N.C., March 9 – Solactive AG and South Pole Group announced their new Solactive SPG Euro IG Low Carbon Bond index.

The index will cover investment-grade euro-denominated corporate bonds and select companies that are less dependent on fossil fuels relative to higher carbon-emitting peers, according to a news release.

The basis of the new index is the Solactive Euro IG Corporate index, including fixed-rate bonds with an amount outstanding of at least €500 million and a remaining time to maturity of at least 24 months.

Companies that do not report their carbon emissions are excluded from the selection pool.

“Until recently, transferring the logic of low carbon investments from equity to fixed income has been a challenge, said South Pole partner Dr. Maximilian Horster. We are excited that our innovative methodologies and unmatched climate change data capabilities now enable easy and effective climate friendly fixed income investments.”

Solactive is a Frankfurt-based index developer. Based in Zurich, South Pole Group specializes in reducing greenhouse gases.

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