FTSE Fixed Income ex Fossil Fuels Enhanced Index Series (International Environmental Agreements Politics Law and Economics)

Summary

• The FTSE Fixed Income ex Fossil Fuels Enhanced Index Series is designed to exclude issuers with fossil fuel exposure across production, services, distribution, retail, and power generation.p.1
• The index series also excludes issuers involved in tobacco production, controversial weapons, and violations of the UN Global Compact.p.1
• The series includes four broad investment-grade indexes covering global, US, Euro, and Australian fixed income bond markets.p.1
• The base date for the WorldBIG, USBIG, and EuroBIG ex-FFE indexes is December 31, 1998.p.2
• The base date for the AusBIG ex-FFE index is June 30, 2000.p.2
• The index series applies market capitalisation weighting and rebalances once a month at the end of the month.p.2

Key insights

1. Exclusion screening uses LSEG Data & Analytics TRBC classifications, FTSE Corporate Bond Sector (COBS), and Product Involvement datasets to filter non-renewable energy and fossil fuels.p.2
2. The screening process incorporates product category filters like fossil fuels and tobacco alongside conduct filters covering environment, human rights, labor, and anti-corruption.p.2
3. The underlying Euro Broad Investment-Grade Bond Index targets investment-grade Euro-denominated coupon bonds across government, government-sponsored, and corporate sectors.p.2
4. The Australian Broad Investment-Grade ex-FFE index focuses on Australian Dollar-denominated debt accessible to Australian institutional investors.p.2
5. The rules-based design and governance structure of the indexes are published on lseg.com/ftse-russell.p.1