Impact investment management firm Triodos Investment Management and market index provider STOXX announce the launch of the iSTOXX Triodos Developed Markets Impact Index, enabling institutional investors to construct impact-aligned portfolios.

According to the companies, the new index was designed to serve as a benchmark for institutional investors looking to integrate positive and measurable sustainability and social impact into their investment approach, while minimizing the negative impact of their investments.

Triodos and STOXX said that the new index comes as impact investing has gained traction in the institutional investor space in recent years, yet a lack of benchmarks has created challenges for investors, with existing sustainable benchmarks typically not taking positive or negative impact into account.

William de Vries, Director Impact Equities and Bonds at Triodos IM, said:

“The iSTOXX Triodos Developed Markets Impact Index aims to be the leading broad impact benchmark, not only enabling institutional investors to effectively steer on impact but also to allocate their investments to specific UN Sustainable Development Goals (SDGs). It also allows us to emphasize specific investment themes when constructing portfolios for our institutional clients.”

Axel Lomholt, General Manager at STOXX, added:

“As a leading provider of innovative custom index solutions, we are delighted to partner with Triodos Investment Management in creating this first-of-kind custom-built impact benchmark. The iSTOXX Triodos Developed Markets Impact Index provides Triodos IM institutional investor clients with new opportunities to align their portfolios with their specific impact and SDG themes.”