ICE Introduces Multi-Asset Class Climate Transition Risk Solution

Rhea-AI Summary

Intercontinental Exchange (NYSE:ICE) has launched a multi-asset class climate transition risk solution that provides emissions estimates and portfolio analytics across various fixed income asset classes. The solution covers Scope 1, 2, and 3 emissions for municipal bonds, mortgage-backed securities (MBS), and real estate, addressing gaps in emissions data for underserved sub-asset classes.

This integrated offering enables clients to assess and benchmark their financed emissions across a comprehensive range of fixed income asset classes. The solution provides PCAF-aligned financed emissions data for over 110 million US properties and more than 4.2 million fixed income securities globally. It offers advanced portfolio analytics to evaluate total emissions across multi-asset class portfolios, supporting climate risk reporting and stress testing.

Positive

• Expansion of climate data coverage to include municipal bonds, MBS, and real estate
• Integrated solution for assessing financed emissions across multiple asset classes
• Coverage of over 110 million US properties and 4.2 million fixed income securities globally
• PCAF-aligned emissions data to meet regulatory disclosure requirements

Negative

• None.

Insights

Climate Data Analyst

This launch of ICE's multi-asset class climate transition risk solution marks a significant advancement in emissions data coverage. By extending to municipal bonds, MBS and real estate, it fills important gaps in the market. The PCAF-aligned data covering over 110 million US properties and 4.2 million fixed income securities globally is particularly impressive. This comprehensive approach, including Scope 1, 2 and 3 emissions, will be invaluable for financial institutions facing increasing regulatory pressures and stress testing requirements. The ability to assess financed emissions across diverse asset classes in one integrated offering could become a game-changer for portfolio managers and risk analysts. However, the true impact will depend on the accuracy and granularity of the data, especially for complex assets like MBS.

Financial Regulatory Expert

ICE's new solution addresses a critical need in the financial sector as regulators worldwide intensify their focus on climate-related financial risks. The inclusion of underserved segments like RMBS and CMBS is particularly noteworthy, given their significant presence on bank balance sheets. This tool could prove essential for banks and financial institutions in meeting evolving disclosure requirements, such as those proposed by the SEC and other global regulators. The PCAF alignment adds credibility and standardization, which is important for comparative analysis and regulatory compliance. However, institutions will need to carefully evaluate how this data integrates with their existing risk management frameworks and whether it provides sufficient granularity for their specific portfolio compositions and regulatory needs.

Holistic Emissions Data Now Available for Municipal Bonds, Mortgage-backed Securities and Real Estate, as well as Corporate and Sovereign Bonds

NEW YORK & ATLANTA--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced the launch of a multi-asset class climate transition risk solution, which provides emissions estimates and portfolio analytics across various fixed income asset classes, covering Scope 1, Scope 2 and Scope 3 emissions for municipal bonds, mortgage-backed securities (MBS), and real estate. This new solution, combined with ICE’s existing coverage of sovereign, corporate equity, and private companies, can enable clients to assess and benchmark their financed emissions across a comprehensive range of fixed income asset classes in one integrated offering.

ICE’s new multi-asset class transition risk solution addresses gaps in emissions data by covering underserved sub-asset classes, such as RMBS, CMBS, and private corporates. By integrating this data, ICE can provide a unified portfolio metric that tracks financed emissions across multiple asset classes, supporting climate risk reporting, ensuring a holistic portfolio coverage from a physical and transition risk standpoint.

“Our clients increasingly need quality transition risk data for underserved segments, particularly mortgage-backed securities, where we have applied physics-based simulations with building energy models and ICE’s data to provide emissions insights for RMBS and CMBS,” said Larry Lawrence, Head of ICE Climate. “Mortgages and mortgage securities can represent more than 20 percent of bank balance sheets, leading to a growing need for data to help meet regulatory disclosure and support stress testing to inform decision-making.”

ICE’s multi-asset class transition risk solution provides PCAF-aligned (Partnership for Carbon Accounting Financials) financed emissions data, encompassing over 110 million US properties and more than 4.2 million fixed income securities globally. With this solution, clients can leverage advanced portfolio analytics to evaluate total emissions across multi-asset class portfolios, assisting clients in transition risk strategies. ICE’s methodologies, customized for each asset class, provide comprehensive emissions tracking, including Scope 1, 2, and 3 estimates, as well as carbon intensity metrics, essential to meet climate regulatory reporting requirements.

This new solution is part of the company’s climate data offering, which provides data and analytics that help quantify investment impacts posed by transition risks as well as physical climate risks, such as extreme weather events.

For more information, visit https://www.ice.com/fixed-income-data-services/ice-climate-data-analytics.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology , we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024.

Category: Fixed Income and Data Services

SOURCE: Intercontinental Exchange

ICE-CORP

View source version on businesswire.com: https://www.businesswire.com/news/home/20241008432655/en/

ICE Media

Isabella Bezzone

+1 212 748 3948

isabella.bezzone@ice.com



media@theice.com



ICE Investor Relations

Katia Gonzalez

+1 678 981 3882

katia.gonzalez@ice.com



investors@ice.com

Source: Intercontinental Exchange

FAQ

What new asset classes does ICE's climate transition risk solution cover?

ICE's new climate transition risk solution covers municipal bonds, mortgage-backed securities (MBS), and real estate, in addition to its existing coverage of sovereign, corporate equity, and private companies.

How many properties and securities does ICE's climate data solution cover?

ICE's climate data solution covers over 110 million US properties and more than 4.2 million fixed income securities globally.

What types of emissions does ICE's climate transition risk solution track?

ICE's solution tracks Scope 1, Scope 2, and Scope 3 emissions across various fixed income asset classes.

How does ICE's climate data solution help with regulatory requirements?

ICE's solution provides PCAF-aligned financed emissions data and carbon intensity metrics, which are essential for meeting climate regulatory reporting requirements.