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Global index provider FTSE Russell has launched sustainable investment fixed-income indexes in the Canadian market, the firm said Thursday.

The indexes use a rules-based approach to identify and screen issuers, including identifying their business sustainability efforts and exposure to fossil fuels, a release said.

The FTSE Canada Green Impact Bond Index Series represents the performance of investment-grade, high-yield and Canadian-denominated green debt issued by Canadian governments and corporations.

The FTSE Canada Universe Ex–Fossil Fuels Bond Index Series tracks the performance of constituents of the FTSE Canada Universe Bond Index after the exclusion of companies with revenue and/or reserve exposure to fossil fuels that exceed a threshold.

“With rising investor needs for greater choice when it comes to managing fossil fuel exposure in portfolios, we have developed a thorough and rigorous methodology to enable climate-conscious investors to align their investment strategy, financial interests and values,” said Marina Mets, head of Americas, fixed-income and multi-asset index product management with FTSE Russell, in the release.

“We believe green and sustainable investing in the Canadian fixed-income market will grow in the coming years as investors look for opportunities in Canada’s transition to a low-carbon economy.”