As investors increasingly look to address carbon-related risks in their portfolios, it is critical that they have access to the right tools. Specifically, there are several ways investors can manage fossil fuels exposure in their portfolios, which includes explicit divestment, tilting, optimization and shifting assets towards companies that are developing greener solutions.
This paper introduces the FTSE Canada Ex Fossil Fuels Bond Index Series, which is the first-of-its-kind in the Canadian fixed income market. It is designed to track the performance of constituents of the FTSE Canada Universe Bond Index after the exclusion of companies, whose revenue and/or reserve exposure to fossil fuels exceeds a set threshold. This paper also discusses the opportunities in the Canadian green bond market, where investors can deploy capital to green growth opportunities and achieve impacts.
You can now read the full whitepaper at the link below