ICE Sustainable Finance Monthly Report
Sign up to our mailing list to receive the newsletter and updates from the ICE Sustainable Finance team
President, Sustainable Finance & Chief Regulatory Officer, ICE
Extreme E-SG
Interest in this year’s annual ICE Climate & Capital Conference, taking place during NYC Climate Week, is exceeding expectations with the in-person registration already oversubscribed. We still hope you will join us and hundreds of other delegates online for the event that will be streamed live and direct from the NYSE on September 20.
This year’s themes of Adaptation, Innovation and Regulation (AIR) are certainly capturing the imagination of our partners, clients, and the broader sustainable finance community. ICE experts will be driving the discussion with panels exploring how data and analytics are helping to direct capital into areas like afforestation and carbon credit markets, as well as explaining the latest innovations in climate technology and data, while navigating the trick terrain of regulatory developments. I look forward to welcoming all our guests, including over 40 speakers from around the world.
To take us across the finish line, I am excited to announce that McLaren Extreme E driver, Tanner Foust, will be with us to close out the ICE Climate & Capital conference 2023.
Insights
Q2 2023 Impact Bond Analysis: Global green bond issuance booms
Global green bond issuance hit a record US$314 billion in the first half, with the finance sector dominating the market, while governments and agencies also played a larger role. Analysis carried out by ICE on the use of proceeds from impact bonds indicates that the most common category of project for such funds is renewable energy investments. The next most common project destination for funds of impact bonds in H1 is clean transportation projects with over 300 bonds representing investment of over $146bn. Industrial sector issuance doubled from 1H 2022, driven by European issuers which accounted for 78% of all issuances from the sector.
Exploring the intersection of real estate carbon emissions and housing affordability
Surging housing costs in the US, especially for middle to lower-income households, prompt an exploration of using energy efficiency to ease these costs. Our new article discusses the correlation between housing expenses, energy usage, and emissions reduction. Factors driving high housing costs include increasing interest rates, inflation, and housing supply-demand discrepancies. Policy efforts like the Inflation Reduction Act and Bipartisan Infrastructure Law allocate funds for energy efficiency promotion to mitigate heating and electricity expenses. Given residential structures contribute over 20% of US carbon emissions, enhancing energy efficiency and decarbonizing power and heating can yield the dual benefits of reducing emissions and housing costs.
In the press
Avoided Emissions
ICE’s recent whitepaper on Avoided Emissions (From Climate Risk to Opportunity: The Concept of Avoided Emissions - produced in association with Ecofin Advisors) is featured in Environmental Finance. Read about ‘avoided emissions’ and how they can be identified in sectors and in segments of a company’s supply chain beyond the usual suspects of renewable energy and utilities.
Product enhancements
Sovereign bond emissions enhancements
ICE enhanced its government bond transition risk analytics tool with the launch of a module on delivering sovereign bond carbon emissions analytics. The tool breaks down sovereign bond emissions by production, consumption, exports and imports, using a selection of intensity metrics including by population, GDP and PPP-adjusted GDP. The enhancement provides individual country level intensity and portfolio contribution analytics, along with absolute emissions and intensity history extending back 14-years.
FEMA National Risk Index (NRI) data now available
ICE is pleased to announce that FEMA National Risk Index (NRI) data is now available for clients who subscribe to ICE’s Climate Physical Risk Data for municipal securities through APEX. ICE maps values from the FEMA NRI dataset to securities at the CUSIP-level.
Featured Events
New York | September 20
Tokyo | October 3-5
London | October 16
Solution spotlight
Mortgage-Backed Securities gain ESG data coverage
We recently launched ESG data coverage on over 1.5M mortgage-backed securities (MBS) boosting our total fixed income coverage to over 3M instruments. ICE’s MBS data set accounts for ~95% of all outstanding securitized real estate loan volume in the U.S. and provides CUSIP-linked climate and socioeconomic data for single-family, multi-family and commercial mortgage-related securities
Helping meet SFDR requirements
The European Union’s Sustainable Finance Disclosure Regulation (EU SFDR) requires financial market participants to identify and disclose certain sustainable impacts. To help clients meet their obligations, our data solution offers event-triggered updates for all mandatory adverse sustainability indicators applicable to investments in companies, sovereigns and supranationals.
Mortgage-Backed Securities gain ESG data coverage
We recently launched ESG data coverage on over 1.5M mortgage-backed securities (MBS) boosting our total fixed income coverage to over 3M instruments. ICE’s MBS data set accounts for ~95% of all outstanding securitized real estate loan volume in the U.S. and provides CUSIP-linked climate and socioeconomic data for single-family, multi-family and commercial mortgage-related securities
Helping meet SFDR requirements
The European Union’s Sustainable Finance Disclosure Regulation (EU SFDR) requires financial market participants to identify and disclose certain sustainable impacts. To help clients meet their obligations, our data solution offers event-triggered updates for all mandatory adverse sustainability indicators applicable to investments in companies, sovereigns and supranationals.
This material contains information that is confidential and proprietary property and/or trade secrets of ICE Data Pricing & Reference Data, LLC and/or its affiliates, and is not to be published, reproduced, copied, disclosed, or used without the express written consent of ICE Data Pricing & Reference Data, LLC. This document is provided for informational purposes only. The information contained in this document is subject to change without notice and does not constitute any form of warranty, representation, or undertaking. Nothing herein should in any way be deemed to alter the legal rights and obligations contained in agreements between ICE Data Pricing & Reference Data, LLC and/or affiliates their clients relating to any of the products or services described herein. ICE Data Pricing & Reference Data, LLC does not provide legal, tax, accounting, or other professional advice. This document is not an offer of advisory services and is not meant to be a solicitation, or recommendation to buy, sell or hold securities. This document represents Intercontinental Exchange, Inc. and/or its affiliates’ observations of general market movements. Please note that the information may have become outdated since its publication.
Clients should consult with an attorney, tax, or accounting professional regarding any specific legal, tax, or accounting situation. Intercontinental Exchange, Inc., and its affiliates are not registered as nationally registered statistical rating organizations, nor should this presentation be construed to constitute an assessment of the creditworthiness of any company or financial instrument. Fixed income evaluations, continuous evaluated pricing, end-of-day evaluations, evaluated curves, model based curves, market sentiment scores and Fair Value Information Services related to securities are provided in the US through ICE Data Pricing & Reference Data, LLC and internationally through ICE Data Services entities in Europe and Asia Pacific. ICE Data Pricing & Reference Data, LLC is a registered investment adviser with the US Securities and Exchange Commission. Additional information about ICE Data Pricing & Reference Data, LLC is available on the SEC’s website at www.adviserinfo.sec.gov. A copy of ICE Data Pricing & Reference Data, LLC’s Form ADV is available upon request.
ICE Data Pricing & Reference Data, LLC and/or affiliates make no warranties whatsoever, either express or implied, as to merchantability, fitness for a particular purpose, or any other matter. Without limiting the foregoing, ICE Data Pricing & Reference Data, LLC and/or affiliates make no representation or warranty that any data or information (including but not limited to evaluations) supplied to or by it are complete or free from errors, omissions, or defects. Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE, ICE Data Services and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at www.intercontinentalexchange.com/terms-of-use. Other products, services, or company names mentioned herein are the property of, and may be the service mark or trademark of, their respective owners.