The Solactive CarbonCare Asia Sustainability Bond Index is the first index of its kind to measure the growth of green, social and sustainability bonds in the Asia Pacific region. Co-developed by CCA and the German index provider Solactive AG*, this index was launched in December 2019 with the aim to accelerate the development of green bonds in the region and to enable investors to track the performance of Asia-Pacific bonds that can demonstrate high integrity and transparency in environmental and social contributions.
As a rules-based index, only bonds that are issued to contribute to environmental sustainability and to address social challenges leading to a positive impact in the region are eligible for inclusion. The eligible bonds are required to pass a two-layered screening by CCA in order to be included in the index. The screening is intended to examine the transparency standards of the bond issuers and that the proceeds from the bond issuance are designated for projects that have significant positive outcomes. This screening by CCA is in line with international best practices under its proprietary Green and Social Taxonomy.
This index also aims to become a valuable tool for asset owners in managing their ESG mandates and to serve as a reference for the wider investment community.
As of October 2020, the index has included 115 bonds, with a weighted average yield to maturity of 2% and duration of four years. The index is quoted in USD and calculated as a total return index.
Solactive CarbonCare Asia Sustainability Bond Index:
https://www.solactive.com/indices/?index=DE000SLA9ST6
Finding Gold in All That Glitters – Exploring Sustainability Bonds in Asia Pacific Region (2020/3/4)
Green, social, and sustainability bonds in the Asia-Pacific market jointly reached USD 187 billion in 2019 and are expected to grow further. For sustainability-conscious international investors, there are two key challenges: the misalignment of expectation and standard-setting, and the expectation gap between the issuers’ use of proceeds and the quantifiable sustainability benefits achieved.
In this research paper jointly presented by CCA and Solactive AG, we provide a historical overview of the green, social, and sustainable bond market in the Asia-Pacific region, as well as the challenges faced by sustainability-conscious international investors and solutions that may be helpful in navigating those challenges.
Disclaimer
The information in this document does not constitute tax, legal or investment advice and is not intended as a recommendation for buying or selling securities. Solactive AG and all other companies mentioned in this document are not responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.
* Solactive AG is an innovative index provider that focuses on the development, calculation and distribution of tailor-made indices across all asset classes. As at January 2019, Solactive AG served approximately 400 clients in Europe, America and Asia, with approximately USD 200 billion invested in products linked to indices calculated by the company globally, primarily via 380 exchange-traded funds from a number of well-known providers. Solactive AG was established in 2007 and is headquartered in Frankfurt.