In an effort to facilitate climate risk management, U.S. exchange giant Intercontinental Exchange Inc. (ICE) is launching futures on four MSCI ESG indexes.
“As the world’s largest provider of ESG indexes, we have witnessed fast adoption of climate indexes over the past 18 months as institutional investors look to position themselves for transition to a low-carbon economy,” said George Harrington, global head of futures and options licensing at MSCI, in a release.
“We are pleased to expand our relationship with ICE as investors around the world look to capture climate change risks and opportunities across the investment process,” he added.
ICE is also listing futures on four MSCI country-specific indices — Australia, Malaysia, Thailand and Hong Kong — and a world (excluding Japan) index. These indices allow investors to manage exposures to large and mid-cap companies in those regions.
The company also announced futures on a new index developed with MSCI that tracks the performance of Chinese tech companies.