Intercontinental Exchange, a leading global provider of technology and data, 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.

Source: ICE