MSCI and Barclays have entered into a partnership to create a range of environmental, social and governance (ESG) fixed-income indices.
The new range is designed to help investors apply ESG investment strategies to their bond portfolios.
The ESG fixed-income indices will be co-branded and independently marketed by both firms.
These indices will be aimed at asset owners and managers, particularly those that have signed up to the United Nations Principles for Responsible Investing, and require a benchmark that integrates ESG factors.
The companies also expect to see the creation of exchange-traded funds (ETF) on the back of the new indices.
"The objective of MSCI's ESG business is to provide investors with tools to integrate ESG factors across a broad range of asset classes," MSCI head of index business Baer Pettit said.
"Working together with Barclays, we expect these new benchmarks to fill a gap in the market and facilitate the growth of ESG investment."
MSCI and Barclays will start a consultation process to ascertain which ESG strategies are most relevant to investors and to define the methodologies of the new indices.
