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ntercontinental Exchange (ICE) has launched a new climate transition risk solution aimed at fixed income markets, including municipals, mortgage-backed securities (MBS), and real estate. This solution provides emissions estimates and portfolio analytics across various asset classes, covering Scope 1, 2, and 3 emissions for municipal bonds, MBS, and real estate.

    The launch expands ICE's existing coverage of sovereign, corporate equity, and private companies, enabling clients to assess and benchmark financed emissions across a comprehensive range of fixed income asset classes. The solution addresses gaps in emissions data by covering underserved sub-asset classes such as residential mortgage-backed securities, commercial mortgage-backed securities, and private corporates.

    ICE's multi-asset class transition risk solution is based on the Partnership for Carbon Accounting Financials criteria, which provides financial institutions with data on compliance with aspects of the Paris Climate Agreement. The company's methodologies provide comprehensive emissions tracking, including Scope 1, 2, and 3 estimates, as well as carbon intensity metrics.

    According to Larry Lawrence, Head of ICE Climate, clients increasingly need quality transition risk data for underserved segments, particularly mortgage-backed securities. This new solution will help meet regulatory disclosure requirements and support stress testing to inform decision-making, especially considering that mortgages and mortgage securities can represent more than 20% of bank balance sheets.