What it is
ICE (Intercontinental Exchange) maintains a family of benchmark indices tracking the performance of green, social, and sustainability bonds globally. The indices cover investment-grade and high-yield segments, providing institutional investors with standardized performance benchmarks for the rapidly growing labeled bond market. Data is available through ICE Data Services with free summary-level access and premium analytics for subscribers.
Why we picked this
As the green bond market surpassed $4 trillion in cumulative issuance, investors need reliable benchmarks to measure portfolio performance against. ICE's indices are among the most widely tracked in institutional green fixed income, offering the kind of granular segmentation (by currency, maturity, use-of-proceeds category) that serious portfolio construction requires.
Key takeaways
- The green bond market grew from near-zero in 2012 to over $500 billion in annual issuance by 2023, making dedicated benchmarks essential for institutional allocation.
- ICE indices distinguish between self-labeled bonds and those meeting Climate Bonds Initiative certification standards, helping investors filter for integrity.
- Green bonds have historically traded at a slight premium ('greenium') of 2-5 basis points versus conventional equivalents, reflecting strong demand.