Triodos IM Collaborates with STOXX to Unveil Groundbreaking Impact Investing Benchmark
Triodos Investment Management has teamed up with STOXX Ltd. to introduce the iSTOXX Triodos Developed Markets Impact Index, a groundbreaking benchmark tailored for institutional investors keen on integrating measurable environmental and social impact goals into their portfolios. This new index responds to the increasing demand for investment tools that not only exclude harmful sectors but also actively promote positive societal contributions.
Understanding the Need for Impact Investment Benchmarks
As the popularity of impact investing continues to grow, many investors face challenges with existing benchmarks that often lack alignment with genuine sustainability outcomes. The iSTOXX Triodos Index aims to fill this gap by providing a robust framework for constructing impact-oriented investment portfolios.
Key Features of the iSTOXX Triodos Developed Markets Impact Index
- Alignment with UN Sustainable Development Goals (SDGs): The index facilitates capital allocation towards specific SDGs while minimizing exposure to harmful industries like fossil fuels and tobacco.
- Active Investment Strategy: Unlike traditional indices, this index encourages investors to steer their portfolios towards measurable impacts rather than merely excluding certain sectors.
- Exclusive Access: The proprietary index will be available solely to Triodos IM’s institutional clients, providing unique opportunities for impact-aligned investments.
Partnership Benefits
The collaboration between Triodos IM and STOXX merges deep expertise in impact investing with advanced index-building capabilities. This partnership is set to reshape the sustainable investing landscape.
Insights from Leadership
William de Vries, Director of Impact Equities and Bonds at Triodos IM, emphasized that the index aims to be a leading impact benchmark, which not only allows for effective impact steering but also facilitates specific investments in UN SDGs. He noted, “It also allows us to emphasize specific investment themes when constructing portfolios for our institutional clients.”
Similarly, Axel Lomholt, General Manager at STOXX, expressed enthusiasm about the collaboration, stating, “As a leading provider of innovative custom index solutions, we are delighted to partner with Triodos Investment Management. The iSTOXX Triodos Developed Markets Impact Index provides institutional investor clients with new opportunities to align their portfolios with specific impact and SDG themes.”
For more information on impact investing and sustainable investment strategies, visit Triodos Bank and STOXX Ltd..
