How Sustainability Indices Can Support the Global ESG Push


This post is by Jenna Ross from Visual Capitalist


The following content is sponsored by ICE

How Sustainability Indices Can Support the Global ESG Push

The rise of sustainable investing has been fueled by a growing awareness of environmental, social, and governance (ESG) issues. 

Alongside this, many investors want to have a positive impact. The issuance of impact bonds—where proceeds are used for a specific social or green cause—rose by 58% from 2020 to 2021.

Sustainability indices play a key role in the market, helping investors and portfolio managers benchmark performance and create new ESG investment products.

In this graphic from ICE, the last in a three-part series on the ESG toolkit, we explore the different types of ICE Sustainability Indices.

1. Green, Social, and Sustainable Bond Indices

What they do: Track bonds that promote climate change mitigation or that aim for positive social outcomes, such as reduced poverty levels. 

Investors can also access sub-indices that track debt in specific currencies, or that cater to different risk appetites via investment grade or high yield bonds.

The face value of many of these sustainability indices has grown considerably in recent years.

IndexDec 2018Dec 2020Jul 2022
ICE Green, Social,
and Sustainability
Bond Index
$272B$972B$1.7T
ICE BofA Green
Bond Index
$240B$572B$980B
ICE Sustainable
Bond Index
$23B$233B$421B
ICE Social
Bond Index
$11B$167B$333B
ICE Global High Yield
Green, Social &
Sustainable
Bond Index
(Read more...)