06 Jun 2011 12:06:05
Companies to be ranked on Environmental Tracking Index
Investors are being given a new platform by which to measure the green credentials of companies; the Environmental Tracking Index Series.
Created by the Environmental Investment Organisation (EIO), the index aims to combine the features of models like the FTSE 100 and Socially Responsible Investment (SRI) indexes, but unlike traditional SRI measures it will include all companies, not just the best in their field.
The organisation claims the index will encourage companies to verify and disclose their emissions data, which will ultimately lead to reduced CO2
emissions, while allowing investors to also track companies on the main benchmark indexes.
Sam Gill, operational director at the EIO, explained: "The logic behind the Environmental Tracking re-weight system is that it applies the most pressure to the most carbon intensive industries and the least pressure to the least carbon intensive industries."
Last year, the FTSE Group, in collaboration with the Carbon Disclosure Project (CDP), launched the CDP Carbon Strategy All-Share Index and the FTSE CDP Carbon Strategy 350 Index, which assess the possible impact climate change could have on investments.