Technology and data provider Intercontinental Exchange (ICE) has unveiled a multi-asset class climate transition risk solution.
The solution offers emissions estimates and portfolio analytics for various fixed income asset classes, including municipal bonds, mortgage-backed securities (MBS), and real estate. It covers Scope 1, Scope 2, and Scope 3 emissions.
Alongside its existing coverage of sovereigns, corporate equities, and private companies, ICE’s solution enables clients to evaluate and benchmark financed emissions across a broad range of fixed income asset classes in a single platform.
The new solution addresses data coverage gaps for sub-asset classes such as residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and private corporates.
By consolidating these data sources, ICE provides a portfolio metric for tracking financed emissions across multiple asset classes. This approach supports climate risk reporting and ensures coverage of both physical and transition risks within portfolios.
ICE climate head Larry Lawrence said: “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.
“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 transition risk solution is aligned with the Partnership for Carbon Accounting Financials (PCAF). It includes financed emissions data for more than 110 million US properties and over 4.2 million fixed income securities globally.
This solution forms part of ICE’s climate data offering, which provides data and analytics to quantify the risks posed by both transition and physical climate events.
In August this year, ICE announced several improvements to its digital mortgage lending platform, dubbed Encompass. The company aims to boost lender productivity, reduce operational costs, and offer increased value to homebuyers.
