The recently introduced FTSE Fixed Income TPI Focused Glidepath Index Series and the FTSE Fixed Income TPI Climate Transition Index Series, according to ESG Today, are designed to aid the financial world in its shift to a low-carbon economy. By 2050, these indexes hope to close the gap between present investment strategies and the climate targets outlined in the Paris Agreement.

FTSE Russell is a specialist in developing and overseeing a wide range of data solutions and indexes that cover different asset classes and geographical areas. With this rollout, their fixed income offerings—which are often recognized for their strong performance measurement and benchmarking tools—have seen a major improvement.

The FTSE Fixed Income TPI Climate Transition Index Series incorporates a fixed-tilt framework to modify constituent weights, providing a dynamic approach. A number of important climate-related variables, including as carbon emissions, green income, green bonds, TPI's Management Quality and Carbon Performance scores, provide the basis for this modification. These elements play a crucial role in managing the benefits and risks associated with the shift to a low-carbon economy while reflecting the performance of local and international fixed income markets.

On the other hand, the FTSE Fixed Income TPI Focused Glidepath Index Series focuses exclusively on corporate bonds and uses a long-only investment approach. It creatively allocates money from bonds that have matured to businesses that support fulfilling the terms of the Paris Agreement by the middle of the century. This approach is intended to reduce tracking mistakes and deliberately direct funding toward industries and businesses that are actively promoting the shift to a greener economy.

These indexes provide investors who are dedicated to sustainable growth and adherence to global climate targets with a powerful instrument. They not only seek to reduce carbon risk and collect green earnings, but also include forward-looking climate measurements.

The FTSE Russell Head of Fixed Income, Currencies, and Commodities, Scott Harman, stated that "FTSE Russell climate indices have evolved to meet the increasing sophistication of sustainable investors." "Demand for indices that incorporate business activity in the green economy and make use of forward-looking metrics has increased."