ICE plans four new climate index futures

The Intercontinental Exchange has announced plans to launch four new index futures contracts based on the MSCI Climate Paris Aligned Indices.

The futures contracts are designed to help investors align with a net-zero world by using a variety of proprietary, key climate metrics and models, including climate value-at-risk, low carbon transition score and companies’ carbon emission reduction targets. The indices covered will be the MSCI World Climate Paris Aligned Index, MSCI USA Climate Paris Aligned Index, MSCI Europe Climate Paris Aligned Index and MSCI Emerging Market Climate Paris Aligned Index. The contracts are expected to launch in January 2022 on ICE Futures U.S.

“The Paris aligned goals are a fundamental part of the environmental, social and governance (ESG) landscape,” said Joel Stainton, EMEA Head of Execution, Futures and Options and OTC Clearing at Bank of America. “We are committed to identifying, developing and supporting ESG solutions for clients, so it is a positive step to see ICE launch these futures.”