FTSE launches environmental index

Impax Group, an environmental investment company, and the FTSE global index have launched an environmental index called the FTSE Environmental Opportunities All-Share Index.

The new index, made up of 450 constituents, will cover alternative energy and energy efficiency, water treatment and pollution control, and waste technologies and resource management. It is one of a series of environmental indices that Impax and FTSE are currently developing together.

Selected constituents of the index must demonstrate that a minimum of 20% of their business comes from environmental markets or technologies. This index will include these companies and offers a broader environmental exposure opportunity to investors.

“Environmental investment is a compelling growth story now firmly in the mainstream.

Ian Simm, chief executive of Impax

Impax said: ‘The environmental investment universe…is now a rapidly developing area of the global economy and consists of companies who have a significant involvement in environmental technologies.’

Ian Simm, chief executive of Impax, said: ‘Environmental investment is a compelling growth story now firmly in the mainstream. To reflect this, the sector needs a credible benchmark for investors. We are delighted to continue this partnership with FTSE, marrying their index expertise and our in-depth sector knowledge.’

Will Oulton, head of responsible investment at FTSE, commented: ‘The index will appeal to institutional and retail investors who want to gain exposure to and track the performance of those companies who are transforming their businesses to increasingly source revenues from global environmental markets.’