Triodos Investment Management, a specialist in sustainable investment, has partnered with global index provider STOXX to launch a new impact-focused benchmark aimed at institutional investors. The newly introduced iSTOXX Triodos Developed Markets Impact Index is designed to help professional investors align their portfolios with measurable social and environmental outcomes, while also excluding companies that fall short of stringent ethical and sustainability criteria.
The index draws from the STOXX Developed World All Cap as its investment universe, encompassing large, mid, and small-cap companies across developed markets globally. From this broad base, the index filters for firms that not only implement strong environmental, social, and governance (ESG) practices but also actively contribute to positive change. This includes corporate leaders addressing climate change, promoting inclusive social policies, enhancing responsible governance, and upholding ethical business practices.
Conversely, the index screens out companies involved in controversial sectors such as fossil fuels, tobacco, and weapons manufacturing—reflecting a more committed approach than many ESG-based benchmarks, which often lack comprehensive exclusions. The aim is to provide institutional investors with a benchmark that goes beyond avoiding harm to actively promoting sustainable development.
The launch responds to a growing appetite among institutional investors for impact investing, a segment that has grown significantly in recent years. According to the Global Impact Investing Network (GIIN), the worldwide impact investing market reached over $1.2 trillion in assets under management by the end of 2022 and continues to expand. However, despite this growth, there has been a noticeable gap in reliable benchmarks tailored specifically for impact-focused strategies. Many existing ESG and sustainable indices do not account for the real-world outcomes—either positive or negative—of the companies included, often resulting in portfolios that are ‘ESG-washed’ rather than truly aligned with impact goals.
William de Vries, Director of Impact Equities and Bonds at Triodos Investment Management, highlighted the practical benefits of the new index:
“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.”
The 17 SDGs, adopted by the United Nations in 2015, serve as a universal call to action to end poverty, protect the planet, and ensure peace and prosperity by 2030. Allocating capital towards investment vehicles aligned with these goals is becoming an increasingly popular strategy among asset owners looking to combine financial return with social purpose.
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-its-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.”
The launch marks a significant development in the continuing evolution of sustainable finance. As regulatory frameworks such as the EU Sustainable Finance Disclosure Regulation (SFDR) and the UK’s Sustainability Disclosure Requirements (SDR) push asset managers towards greater transparency, having robust and tailored benchmarks will be essential for demonstrating genuine impact alignment.
For more information on the index, visit [STOXX](https://www.stoxx.com) or [Triodos Investment Management](https://www.triodos-im.com).
