Solactive has announced its latest collaboration with UmweltBank on the launch of a new Green and Social Bond ETF.
The ETF tracks the Solactive UmweltBank Green & Social Bond EUR IG 0–5 Year Index, aiming to offer investors targeted exposure to high-quality, euro-denominated fixed-income securities that meet rigorous environmental, social, and governance (ESG) criteria in alignment with UmweltBank’s sustainability principles.
The Solactive UmweltBank Green & Social Bond EUR IG 0–5 Year Index is a rules-based, total return index engineered to track the performance of Euro denominated investment grade bonds that are recognised by the Climate Bonds Initiative as green or social and/or sustainable bonds. The index applies exclusion criteria inspired by the EU’s Paris-Aligned Benchmark (PAB) standards, which form the foundation of its ESG screening.
These are further refined through UmweltBank’s proprietary sustainability criteria, excluding issuers involved in fossil fuels, nuclear energy, controversial weapons, and those domiciled in authoritarian regimes or countries that do not comply with key international conventions. The eligible bonds are issued by sovereigns, supranationals, agencies, and corporates with a remaining maturity between two and five years and a minimum issue size of EUR 500 million. To ensure a diversified and ESG-compliant composition, the index applies an optimisation-based weighting methodology with strict issuer and regional concentration caps.
The ETF was listed on the 11th of August 2025 on Xetra with the ticker symbol FJ7E (ISIN: LU3093383670).
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “We are proud to partner with UmweltBank in its mission to drive capital toward sustainability. The index reflects a robust ESG methodology tailored to UmweltBank’s high standards and aligns well with the growing demand for responsible fixed-income strategies. This partnership exemplifies Solactive’s commitment to creating customized solutions that empower investors to act on their sustainability convictions.”
Tobias Mötsch, Stocks and Bonds Specialist at UmweltBank AG, says: “Our ambition is to contribute to a world worth living in – for today and for future generations. With the launch of this ETF, we are expanding our commitment to channel capital into sustainable and future-oriented bonds. Solactive’s role as a methodologically strong index provider enabled us to implement our strict sustainability standards into the development of this index. By that, we’re ensuring that only ecological and social bonds that reflect our values are included in this ETF.”
