STOXX and Intercontinental Exchange (ICE) have launched a suite of optimized fixed income climate indices, combining their expertise in an area of increasing demand for index-based investing.
The STOXX ICE Fixed Income Sustainability indices cover the investment-grade segment in US dollars, euros, sterling and other currencies, and high-yield bonds in dollars and euros. They are constructed to comply with, and exceed, the European Union’s Paris-aligned Benchmark (PAB) and Climate Transition Benchmark (CTB) requirements. As such, they are designed to align investments with the Paris Agreement’s long-term global warming goals.
ICE, the owner of the New York Stock Exchange and a leading provider of market technology and data, will be responsible for pricing, reference data and index calculation services. STOXX, which developed the indices, will oversee their administration and provide its proprietary data. Together, the two firms bring over 60 years of combined experience in financial data and index solutions.
“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.”
Fixed income ETFs have surged in popularity in recent years, reaching USD 2.6 trillion in assets under management (AuM), according to BlackRock.[1] The US manager has estimated the ETFs will grow to USD 6 trillion in AuM by 2030. The climate focus in the new STOXX ICE indices’ methodology makes them attractive at a time when increasing regulation and efforts to meet net-zero targets call for balancing a portfolio’s performance, transparency and compliance.
While over USD 570 billion is invested in climate funds worldwide,[2] only a small share is in fixed income funds.
Index methodology
Index construction follows an optimization process that uses the Axioma Portfolio Optimizer software and is aimed at meeting the requirements detailed in the Commission Delegated Regulation (EU) 2020/1818. The indices overweight companies that have greenhouse gas reduction targets under the Science Based Targets Initiative (SBTi)[3] and target a minimum ‘green-to-brown’ revenue ratio. Additionally, the indices are optimized to reduce the turnover and to track the performance of parent indices.
The indices exclude companies based on global norms, product involvement, controversies and activities that hinder certain United Nations’ Sustainable Development Goals (SDGs).
“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 combining the expertise of two globally recognized and respected providers of data to fixed income markets,” 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.”
Existing collaboration
STOXX already leverages ICE’s fixed income pricing and reference data for calculation and reporting of its eb.rexx indices, which track the market for German government bonds in euros. Those indices have become recognized benchmarks and currently underly USD 3.2 billion in ETFs managed by BlackRock’s iShares.[4]
The first eb.rexx indices were introduced in 2002. STOXX also manages the EUROGOV bond indices, which track government bonds denominated in euros.
[1] Source: iShares, ‘Bond market opportunities meet ETF innovation,’ April 23, 2025. AuM data as of the end of 2024.
[2] Source: Morningstar, ‘Investing in Times of Climate Change,’ November 22, 2024.
[3] The methodology overweights issuers with SBTi Approved, Committed and Ambitious targets.
[4] Source: ETFBook, data as of May 19, 2025.