NEW YORK, March 9, 2017 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI"), the world's leading provider of index-based concepts, data and research, today announced its launch of the S&P Green Bond Select Index which captures the most liquid and tradeable segment of green-labeled bonds issued globally. The index has been licensed to VanEck for an exchange-traded fund (ETF).
Using market value-weighted characteristics of the S&P Green Bond Index, the S&P Green Bond Select Index measures the performance of green-labeled bonds, which finance environmentally-friendly projects. Only green bonds that fulfill a strict set of requirements, such as designation of "green" by the Climate Bonds Initiative (CBI), a debt rating aligned with its credit quality and a minimum outstanding par value are eligible for inclusion.
"We continue to see strong demand for investment opportunities that incorporate environmental, social and corporate governance (ESG) factors," said Reid Steadman, Deputy Head of Product Management at S&P Dow Jones Indices. "The S&P Green Bond Select Index is a benchmark for market participants seeking to monitor developments in this critical area of green finance."
"We are seeing increasing interest from investors for ways to build sustainable, environmentally-conscious portfolios, but until now they have had few investible fixed income index solutions," said Edward Lopez, Head of ETF Product Management and Marketing at VanEck. "We believe the S&P Green Bond Select Index provides an excellent foundation for financial products such as ETFs, which can provide efficient and cost-effective access to the green bond market. We look forward to working with S&P Dow Jones Indices and helping fixed income investors achieve their investment objectives while still making a positive impact on the environment."
S&P DJI publishes and calculates more than 100 ESG indices. It recently acquired Trucost, a leader in carbon and environmental data and risk analysis, to use a shared commitment to the environment for the development of essential ESG solutions.
For more information about S&P Dow Jones Indices, please visit www.spdji.com.
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S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spdji.com.
SOURCE S&P Dow Jones Indices