Connect with us


FTSE launches new environmental index



FTSE has unveiled the Environmental Technologies Index (ET 100), which will assess companies operating within environmental markets.

The ET 100 is the 21st index in the FTSE Environmental Markets series and will include firms involved in environmental technologies such as renewable energy, water, energy efficiency, waste management and pollution control.

Jupiter Asset Management has already adopted the index for its Ecology Fund.

FTSE director David Harris said, “It’s extremely fitting as both companies are pioneers in their respective industries for supporting environmental market investing.

We have seen huge changes in the shape of the market: in the recent past it was dominated by a small number of large renewable energy companies. 

He added, “Today it is more diversified with the energy efficiency (31.1%) and water infrastructure and technology (21.7%) sectors representing the largest sector weights of the index.”

Meanwhile, Charlie Thomas, manager of the Jupiter Ecology Fund, said, “The launch of the FTSE ET 100 index is a welcome development and a clear sign that environmental investing has come of age.

It has become increasingly important to us to have this reflected in a more accurate and relevant index alongside our existing benchmark, the FTSE World Index. For this reason we were very keen to adopt the newly launched FTSE ET 100.”

ET100 is a further development of the ET 50, the index launched in 1999 by Impax Asset Management, which is the longest running index assessing environmental technology.

Financial information firm Dow Jones and sustainable investment specialists RobecoSAM recently developed a joint index that looks to measure the sustainability performance of companies from emerging economies.

Further reading:

BT tops inaugural UK carbon ranking index

Tapping into the all-powerful financial system to influence investor behaviour

Investors propose disclosure on sustainability performance

FTSE 100 firms reporting less financial data since 2008 crisis

Metric launched to help investors compare sustainability of firms