FTSE Fixed Income TPI Index Series

There is growing demand from investors to integrate climate considerations into their investment strategies and their implementation decisions are increasing in sophistication. Meeting this demand requires indices that go beyond a narrow focus on carbon emissions to integrate company activity within the green economy.

According to McKinsey, the climate transition is expected to cost $3.5 trillion per year in extra spending on physical assets, with much of this total being financed through the debt markets. Globally, many asset owners and asset managers are committed to financing the transition. They also wish to align the weightings of their fixed income portfolios to climate change targets.

FTSE Russell climate indices have evolved to meet the increasing sophistication of sustainable investors and have addressed these trends through a variety of data and analytical partnerships, index designs and launches.

FTSE Fixed Income Corporate TPI Focused Glidepath Index  

The FTSE Fixed Income Corporate Transition Pathway Initiative (TPI) Focused Glidepath index series has been developed to serve as a benchmark for investors wishing to implement a low-turnover, low-tracking error decarbonisation investment strategy.

The index series methodology supports engagement with fixed income issuers rather than immediate divestment from climate laggards, generating a steady reduction in carbon emissions and intensity over time by comparison with a market-weighted corporate bond index.

FTSE Fixed Income TPI Climate Transition Index Series

The FTSE Fixed Income TPI Climate Transition index series offers investors a solution to support their climate commitments by mitigating carbon risk, capturing green revenues and incorporating forward-looking metrics. 

The index series methodology is designed to reflect the performance of global and regional fixed income markets, where index constituent weights are varied to account for the risks and opportunities associated with the transition to a low-carbon economy.

We offer:

• A fixed income index designed to support investors' climate commitment and sophisticated requirements
• Expertise from Transition Pathway Initiative's (TPI) data to assess companies' readiness for climate transition
• A multi-asset TPI opportunity through a methodology aligned with the equity FTSE TPI index version
• A wide range of fixed income index selections in global and regional markets with customisable criteria

The FTSE Fixed Income Corporate TPI Focused Glidepath index series complements the FTSE Fixed Income TPI Climate Transition Index Series, which uses the full FTSE Russell Sustainable Investment dataset — carbon emissions, green revenues, green bonds and TPI data — to set index weightings.

Compared to the FTSE Fixed Income Corporate TPI Focused Glidepath index series, the FTSE Fixed Income TPI Climate Transition Index Series targets a higher TPI and green revenues uplift and lower greenhouse gas emissions. It is also likely to incur higher internal index turnover and higher tracking error compared to the starting index universe.